Paying an Annual Fee on a Credit Card
There are times where credit cards can be worth the annual fee depending on your spending habits.
I'll give you a personal example. I recently got the Citi Prestige which normally has a $450 annual fee.
So let's get down to how it is worth it for me:
$250 Air travel credit: I easily spend more than $250 on air travel each year. So that brings it $200/year
$100 reduced fee for having a CitiGold checking account. So that's $100/year
Assuming I'll spend my ThankYou Points on American Airline flights, I'll get 1.6 cents/point with the Prestige, instead of the 1 cent/point without it (This is not an assumption not everyone will make)
I spend $400/month on fast food/restaurants (conservative assumption). With my Citi Forward, I get 5 TY Points/dollars on restaurants (unfortunately this credit card is not available anymore)
So I'll get 24,000 points/year from food. With the extra .6 cent/point value because of the Prestige, I'll get $144/year. With this, I'm already up $44. But this all this assumes I'm redeeming all my rewards from eating on American Airline tickets.
So anything beyond this will essentially be additional bonuses beyond the $450 annual fee. Some of the benefits include:
50k signing bonus after spending $3k in 3 months: Essentially $800 for American Airlines
1.3 cents/point value on other airlines besides American Airlines
Spend 4 nights at a hotel and get the 4th night for free: This can worth quite a bit each time you use this benefit. I expect to take advantage of this 2-3 times a year which will be worth $200+.
Global Entry (includes Pre TSA) reimbursement: Valued at $100, nice to have but not worth that much to me
3x the points on air travel and hotels
Three rounds of golf: This can be worth the annual fee itself depending on the courses you choose, which includes TPC courses and other private golf clubs
Missed Event Ticket Protection: If you miss a sporting event, concert, or lecture, you can claim up to $500 per ticket, up to $5,000/year. Missing the event can because of emergencies or even losing your ticket. I haven't seen this benefit in any other card.
Priority Pass: This is for nice lounges at certain airports. Unlike the pass that comes with the AMEX Platinum, the Prestige one allows you to bring two friends or your immediate family. Somehow this is valued at $400/year and that membership doesn't allow you to bring people with you.
Access to Admiral’s Club lounges when you fly American Airlines
Spend 4 nights at a hotel and get the 4th night for free: This can worth quite a bit each time you use this benefit
Great travel coverage: This is coverage you won't get with any card with lower/no annual fees including cancellations, delays, and delayed/lost baggage.
Access to Citi Private Pass Beyond
Access to NetJets, chauffeured car service, 24/7 concierge
As you can see, I'm getting a good amount of benefits, but some I don't care for. I definitely think the Citi Prestige is worth the annual fee for me. It all depends on how you spend and what you benefits and rewards you value the most.
I'll be more than happy to help you decide which cards would suit your spending and goals. Just ask!