Mar 7, 2026
While the idea of owning a premium-level credit card may seem prestigious, the reality is it’s unlikely these cardholders are taking full advantage of the rewards programs and benefits on offer.
“A lot of people get into this wishful thinking or hypotheticals around taking advantage of specific perks”, Odysseas Papadimitriou, co-founder and CEO of WalletHub, told The Wall Street Journal in an article published Nov. 17 (1). “And they don’t end up using any of these, so it’s a complete waste”
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Given that consumers are spending in the high hundreds on annual fees for some cards, it’s important to make sure you’re getting the most out of your benefits — or at least what you’re paying for.
Pros and cons of premium cards
While the marketing departments of each credit card company try to make all the perks sound exciting, the reality is that not every card’s perks package works for every person. A card with travel perks is likely not the right choice for someone who takes only one trip per year, and a cashback card might not earn you much unless you use your credit card for everyday purchases.
Before you select a card — particularly one with a high yearly fee — consider if it fits into your current lifestyle.
Some pros of rewards cards include:
- Sign-up bonuses that can translate to hundreds of dollars in rewards if conditions are met
- Perks like points, miles or cash back that translate into things like free trips or money based on your spending habits
- Bonuses like travel insurance and access to priority lounges in major airports
Some disadvantages of these cards include:
- Conditions that require a high level of spending
- Unequal cash back or points for different categories of spending
- Low points-to-spend ratios
To qualify for the credit cards with the best perks, some issuers will want to see that you have a high-end credit score. Some cards also have an annual minimum income limit.
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Are premium cards worth it for you?
When choosing a new card, particularly one with a high annual fee, it helps to do your homework. It’s best to select a card that suits your spending habits and lifestyle, and it would be wise to calculate whether or not the annual fee is worth it. Consider these factors:
How you spend your money: Choose a card that offers the maximum rewards for your spending habits, like cash back perks for groceries and gas, or points multipliers depending on where you spend.
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The value of additional perks: Review perks like travel insurance or credits for things like gym memberships and delivery services — do these benefits offer enough to cover your needs? Do they cover the value of the annual fee?
Don’t go overboard: You don’t want to increase your overall spending just to enjoy a card’s benefits. If you plan to make most of your purchases on your credit card to maximize your rewards, be sure you don’t go over-budget and end up in debt.
Stay up to date on changes: Rewards programs change frequently, so don’t ignore notices from your card issuer. Changes can include things like new conditions for benefits or expiration dates on points.
Finally, remember that your lifestyle may change, and the card that suited you two years ago may not be the best option today. Review cardholder agreements regularly, and don’t be afraid to ask your credit card company what other cards may offer that may suit your current lifestyle better.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Wall Street Journal (1)
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
