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CNBC
2 days ago
- Business
- CNBC
Travel card benefits are 'getting harder to maximize,' analyst says. What to know before you apply
As some popular travel credit cards boost annual fees and amend benefits, experts say it's time to reassess which cards — if any — merit a spot in your wallet. "Annual fees are not inherently bad; you just need to make sure that you're getting value from [the card]," said Ted Rossman, an industry analyst at Bankrate. "It's getting harder to maximize, though." In June, the Chase Sapphire Reserve card raised the annual fee to $795. That's a 45% jump from $550, its previous annual cost. More from Personal Finance:Paying for college gets increasingly difficult as tuition risesTrump's 'big beautiful bill' slashes this tax break for high earners in 2026Credit card debt reaches $1.21 trillion Other credit cards have been changing terms to access perks like airport lounges. Earlier this summer, Capital One announced that, starting in February, customers using its Venture X Rewards and Venture X Business cards — each of which have $395 annual fees — will no longer be able to bring guests to the lounges free of charge. That follows news from American Express that travelers who have an American Express Platinum card — which costs $695 a year — must spend $75,000 in eligible purchases before they can bring up to two guests to an airport lounge. Previously, there was no minimum spend and cardholders could bring up to two guests for free, according to NerdWallet. Here's how to decide if a travel credit card is worth the investment. A travel rewards card isn't likely to be a good value if you're carrying a balance from month to month, experts say. "Any interest that you owe will easily diminish the value of any of these benefits," said Sally French, a travel expert at NerdWallet. It may also be harder to pay down debt. While the average annual percentage rate for credit cards is about 20.13%, the typical rate on premium travel cards can be closer to 25% to 30%, according to Rossman. "Generally speaking, rewards cards charge higher rates," he said. You'll come across two kinds of travel credit cards. Co-branded credit cards are usually tied to specific airlines, hotels or even cruise chains, and provide benefits that are more valuable at that brand, French said. If you frequently use a specific airline or tend to stay with a certain hotel chain, a co-branded credit card may be worth it, experts say. An airline credit card, for instance, might have benefits like free checked bags, priority boarding, premium status tiers and sometimes discounts or points for spending at that airline. "It's only free check [checked?] bags on that airline," said French. "Your Southwest credit card won't get you anything on United." Some airlines belong to partnership networks such as Star Alliance, Oneworld or SkyTeam. If you're looking at a brand-specific card, see if the company has partnerships that allow you to transfer points or miles to allied brands. On the other hand, general travel credit cards are "really good for people who don't want to be married to a specific brand," as you can earn and use rewards more broadly, French said. Some travel credit cards do not charge annual fees; for those that do, the cost can range from $95 to upwards of $500 a year, per NerdWallet. Keep in mind that travel credit cards with little to no fees may not offer the same level of benefits and rewards as paid cards. Both kinds of travel cards tend to have a set of similar perks, including credits for TSA PreCheck and other pre-screening memberships, and big sign-on bonuses when you spend a certain amount of money on the card within a short period of opening it. As a frequent traveler, such benefits can help make the card fee worth the cost, experts say. To assess the benefits of the card, look at a detailed list of the perks on the issuer's website, said French. A card might charge an annual fee, but say it includes one free checked bag for you and a certain amount of guests. With just that perk, the card could pay for itself within a trip or two for a family. While some of the perks and rewards can seem enticing, it's important to consider your travel habits and lifestyle, said Rossman. Also consider what your credit habits are like, experts say. For those who do not travel often, a travel credit card without an annual fee is probably going to be the best option, said French. "You don't want to be paying an annual fee on a credit card that has benefits that you might not use," she said. If you travel frequently in a given year and typically with a specific airline, a co-branded credit card can make sense, French said. If you currently hold a card with a high annual fee, but realize you're not getting the most use out of it, you may be able to downgrade to a less expensive or free card offered by the issuer, Rossman said. Doing so will be better for your credit rather than closing out the card altogether, he said.
Mint
17-06-2025
- Business
- Mint
American Express to make largest ever investment in travel-focused Platinum Credit Cards
Bloomberg: American Express Co. teased updates coming later this year to its travel-focused Platinum credit cards, announcing what it called 'its largest investment ever' in a credit-card refresh. 'We're going to take these cards to a new level, not only in what they offer in travel, dining and lifestyle benefits, but also in how they look and feel,' Howard Grosfield, Amex's group president for US consumer services, said in a statement Monday. Amex raised its Platinum card annual fee to $695 in July 2021, when it also added $200 in annual hotel credits. Since then, the New York-based company has faced intensifying competition for premium credit-card customers, including from JPMorgan Chase & Co.'s Sapphire Reserve card and Capital One Financial Corp.'s Venture X Rewards card. The Amex update will apply to both the US consumer and business Platinum cards, the company said. It didn't provide more specifics on what changes are coming. Typically premium cards, as the name suggests, offer premium services such as hotel stays, fine dining, access to golf, among others. These cards are usually invite-only and can be applied for. However, most of these cards have a high annual fee i.e., upward of ₹ 50,000. The Amex card mentioned here has an annual fee of $695 (equivalent to ₹ 59,770). The complimentary services, meanwhile, are too premium to be availed for anything less than this. These cards are accepted around the world and come with concierge service which can assist you in booking flowers, movie tickets and fine dining reservations. Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Business Times
17-06-2025
- Business
- Business Times
American Express plans ‘largest investment ever' in platinum credit card
[NEW YORK] American Express (Amex) teased updates coming later this year to its travel-focused Platinum credit cards, announcing what it called its 'largest investment ever' in a credit card refresh. 'We are going to take these cards to a new level, not only in what they offer in travel, dining and lifestyle benefits, but also in how they look and feel,' Howard Grosfield, Amex's group president for US consumer services, said on Monday (Jun 16). Amex raised its Platinum card annual fee to US$695 in July 2021, when it also added US$200 in annual hotel credits. Since then, the New York-based company has faced intensifying competition for premium credit card customers, including from JPMorgan's Sapphire Reserve card and Capital One Financial's Venture X Rewards card. The Amex update will apply to both the US consumer and business Platinum cards, the company said. It did not provide more specifics on what changes are coming. Card upgrades are critical for new-card acquisition and fees to fuel Amex's revenue growth targets, Bloomberg Intelligence analyst Ben Elliott wrote in a note to clients. 'Consumers' appetite for ever-higher annual fees and complex, incentive-driven rewards structures could be tested if demand slows, but the formula has driven growth consistently for decades,' Elliott said. Access to Amex's global lounges is one of the benefits linked to the Platinum card. A new Centurion lounge will be opening at Tokyo's Haneda Airport in the next year, Amex said, in addition to already-announced plans for new ones in Salt Lake City and Newark, New Jersey. BLOOMBERG
Hindustan Times
16-06-2025
- Business
- Hindustan Times
American Express plans 'largest investment ever' in platinum credit card
American Express Co. teased updates coming later this year to its travel-focused Platinum credit cards, announcing what it called its 'largest investment ever' in a credit-card refresh. 'We're going to take these cards to a new level, not only in what they offer in travel, dining and lifestyle benefits, but also in how they look and feel,' Howard Grosfield, Amex's group president for US consumer services, said in a statement Monday. Amex raised its Platinum card annual fee to $695 in July 2021, when it also added $200 in annual hotel credits. Since then, the New York-based company has faced intensifying competition for premium credit-card customers, including from JPMorgan Chase & Co.'s Sapphire Reserve card and Capital One Financial Corp.'s Venture X Rewards card. The Amex update will apply to both the US consumer and business Platinum cards, the company said. It didn't provide more specifics on what changes are coming. Card upgrades are critical for new-card acquisition and fees to fuel Amex's revenue growth targets, Bloomberg Intelligence analyst Ben Elliott wrote in a note to clients. 'Consumers' appetite for ever-higher annual fees and complex, incentive-driven rewards structures could be tested if demand slows, but the formula has driven growth consistently for decades,' Elliott said. Access to Amex's global lounges is one of the benefits linked to the Platinum card. A new Centurion lounge will be opening at Tokyo's Haneda Airport in the next year, Amex said in the statement, in addition to already-announced plans for new ones in Salt Lake City and Newark, New Jersey.
