Best Premium Credit Cards for Travel Rewards | 2020

Trying to decide if the high fee for premium credit cards is worth it? I’ll take you through the 4 best luxury credit cards for travel points and benefits. Take a look at fees, perks, elite status, best ways to redeem, point value, what card to use for what purchases, and more! 

You may be surprised to learn that a frugal penny pincher like myself spends $2,045 in premium credit cards every year. And that’s just the fees for my four mainstay luxury cards! That doesn’t include the other mid or low tiered cards I hold or rotate. 

While I myself may baulk every time I look at that number, the moment I do the math, the numbers confirm I’ve come out ahead and actually made money by owning these luxury credit cards.

The whole credit card game is enough to dedicate an entire year's worth of blog posts. Today, I’m focusing on premium credit cards. The Chase Sapphire Reserve, American Express Platinum, Marriott Bonvoy Brilliant, and Citi Prestige are the best luxury credit cards. I will ALWAYS have these four cards in my wallet. Though the annual fees may seem steep, the benefits, statement credits, instant elite status, and perks make these cards more than worthwhile.

Today we'll take a deep dive into each card and what it can offer you. After reading this post it will be clear if you should own one or all four cards depending on how much you travel, what’s important to you, and how much you value certain perks.

*Be warned, this is a longer post so stick with me to the very end. Deciding which premium credit card is right for you is not a simple question that can be answered in one paragraph. I want this post to be a complete and comprehensive guide so you leave knowing you are armed with all the information. This is why we'll go through all the important details. Trust me, it's worth it to spend some time figuring out your credit card strategy. I haven't paid for a flight in over ten years because I put time and effort into my personal credit card strategy and know you will reap the benefits too!

Continue reading BEST premium credit cards for travel rewards or save it for later!

Before we get started, let’s get a few housekeeping items out of the way in order to simplify the card summaries below.

Why I don’t include access to hotel programs in the benefits summary

Most premium credit cards come with access to a specific hotel program. The AMEX Platinum gives access to Fine Hotels & Resorts. The Chase Sapphire reserve includes access to the Luxury Hotel & Resort Collection. What is the benefit to booking through this collection or program? If you book through the program’s website, you’ll receive perks like a $100 spa credit, free breakfast, room upgrades, etc.

I’m not including this in the perks summary for any card listed below. Every time I look into booking a hotel with one of these programs the price is always higher than if I booked directly with the hotel or if I used a booking website like hotels.com (even with the included benefits and free items).  

All four premium credit cards include these perks  

Global Entry ($100)/TSA Precheck ($85) Fee Credit – Global Entry includes TSA Precheck, so you might as well just get Global Entry. Global Entry lasts 5 years. Effectively, you’ll save $20 a year by having your Global Entry fee reimbursed every 5 years.

Purchase Protection and Extended Warranty Protection – protection from damage or theft for 90 days (120 with Chase Sapphire Reserve) for new purchases and extended warranties. 

No Foreign Transaction Fees

Airport Lounge Access with Priority Pass Select - don’t count on gaining admittance into the luxurious Delta Sky Club or American Express lounge collection. Priority Pass includes the lower status clubs. The Priority Pass app will show you what clubs you can get into at each airport. I’ve found that the clubs on this list are much better abroad, like Europe, than in the US.

Priority Pass seems to come with every premium credit card now, so this isn’t a huge perk for me personally. Because so many cardholders now have access to Priority Pass, it’s very common to arrive at a club and be denied entrance because they have reached their capacity.  

Chase Sapphire Reserve

Use Chase Sapphire Reserve for all purchases (travel or non-travel) not paid for with the three other premium credit cards (Citi Prestige, AMEX Platinum, and Marriott Bonvoy). These three cards are all used for very specific purchases (see below). Not so with my Chase Sapphire Reserve. This card ends up being my back-up or default premium credit card.

• Citi Prestige: hotels (only when using the “4th-night free” benefit), restaurants, and cell phone bills.
• AMEX Platinum: flights booked directly with the airline, flights booked through American Express Travel, prepaid hotels booked through amextravel.com.
• Marriott Bonvoy Brilliant: all Marriott purchases (hotel, dining, spa…anything purchased at a Marriott property).

It’s also worth noting that the Chase Sapphire Reserve has the best travel coverage and insurance including an emergency evacuation benefit and emergency medical and dental coverage while traveling. I’ll use my Chase Sapphire Reserve over the other three premium credit cards if I’m traveling outside the US and want to have peace of mind knowing I have insurance and emergency services covered with this card. 

The AMEX Platinum, Citi Prestige, and Marriott Bonvoy Brilliant all have some sort of travel coverage or insurance, but it’s not nearly as extensive as the Chase Sapphire Reserve. An example of an awesome Chase Sapphire Reserve benefit is the Trip Delay Reimbursement. You can receive up to $500 per ticket for expenses like lodging and meals if your trip is delayed over six hours. 

Reward Program/Portal: Chase Ultimate Rewards

Annual Fee: $550

Effective Annual Fee: each year this card not only ends up with a net-zero cost, but I actually make money by taking advantage of all the programs. Add together the $300 travel credit, the $60 DoorDash meal credit, the average $100 I earn in shopping credits (see below), and the $20 Global Entry fee credit ($100 every 5 years)...my fee is already down to $70. Use the 25% savings with National Rental Car a few times and you'll find the yearly annual fee quickly dwindles to zero.

Earning Points: 3 points per dollar on restaurants and travel and 1 point for everything else.

Redeeming Points: 1 to 1 point transfers to 13 travel partners including Marriott, Hyatt, American Airlines, and United Airlines or redeem for travel in the Chase Ultimate Rewards portal at a value of 1.5 cents per point.

The Points Guy values Ultimate Rewards points at 2 cents a point. You can read more about his valuations here. This is my go-to resource for keeping up to date on points and credit cards. 

Benefit Summary

$300 in Annual Travel Credits - the travel category is broad and includes hotels, flights, Ubers, trains, Airbnb, and more. You’ll receive credits on your monthly statement until you reach $300. 

Travel Coverage and Insurance - baggage delay insurance, rental car insurance, trip cancelation/interruption insurance, trip delay insurance.

Roadside Assistance – you’re covered up to $50 per service four times a year.

Lost Luggage Reimbursement – receive up to $3,000 per passenger if your luggage is lost by the carrier. 

Emergency Evacuation Benefit – cardholders can be covered up to $100,000 for transportation and medical services if they or an immediate family member become sick or injured during a trip and requires emergency evacuation.

Emergency Medical and Dental Benefit – cardholders can be reimbursed up to $2,500 for medical expenses if they or an immediate family member becomes sick during a trip that’s 100 miles or more away from home. 

Rental Car Privileges - instant Executive Level status with National Rental Car and special car rental privileges with Avis and SilverCar. The Executive status with National is the big perk here. Not only do you save up to 25% on your car rentals once your Chase Sapphire Reserve card is linked with your account, but you also get to skip the line and head straight to the Executive section and pick whichever car you want. This not only saves time, but the cars in this section are always newer and nicer than the rest.

DoorDash (meal delivery credits and status) - $60 DoorDash Credit in 2020 and $60 in 2021 plus free DashPass membership for a minimum of one year. Enjoy waived delivery fees and reduced service fees with DashPass. 

Lyft Pink Membership - normally $19.99 a month, comes free with your Chase Sapphire Reserve for one year. A Pink membership means 15% off rides, priority airport pickups, special offers, relaxed cancelation fees, and more. Earn 10 points per dollar on Lyft rides through March 2022.

Chase Offers - a list of offers is constantly updated on the Chase website when you’re logged into your account. $10 back when you spend $50 at Cole Haan, $50 back when you spend $200 at Omni Hotels, etc. I check these offers every two weeks. You have to click and “add them to your card” for Chase to register the purchase and award the resulting statement credit. On average, I earn about $100 back in statement credits each year for purchases I would have normally made. 

See my other travel tips!

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AFFORDABLE TRAVEL | 10 BUDGET TRAVEL TIPS

TRAVEL SAFETY TIPS – WHAT TO DO BEFORE DEPARTURE

Citi Prestige Mastercard

Use Citi Prestige Mastercard for hotels when using the “4th-night free” benefit, restaurants, and cell phone bills.

Annual Fee: $495

Reward Program/Portal: Citi ThankYou Points

Effective Annual Fee: the 4th-night free benefit (two per year) will pay for the card alone assuming your hotel is at least $250 a night. I save my most expensive hotels for my 4th-night free benefit. Add in the $250 annual travel credit and you’re looking at making money by owning this card. The only reason I wouldn’t recommend this card is if you NEVER stay at a hotel that is more than $150 or you NEVER stay at a hotel for more than 3 nights. That’s when the 4th-night free benefit becomes a moot point.

Earning Points: 5 points per dollar on air travel and restaurants, 3 points on hotels and cruises, and 1 point for everything else.

Redeeming Points: transfer points to 15 airline partners or redeem points directly through the Citi ThankYou Points portal for travel bookings at a value of 1 cent a point.

The Points Guy values Citi ThankYou points at 1.7 cents a point.

Benefit Summary

4^th Night Free Benefit – receive your 4^th night free at any hotel two times a year. This benefit alone pays for the card if your hotel rate is at least $250 a night.

$250 Travel Credit – hotels, flights, taxis, tolls, parking, and more are eligible towards an annual $250 travel credit. You’ll receive credits on your monthly statement until you reach $250.

Cell Phone Protection – provides reimbursement for certain damage or theft 

ShopRunner – free 2-day shipping and free returns at over 140 online stores 

Golf Benefit – special access to over 2,000 golf courses around the globe

American Express Platinum

Use American Express Platinum for flights booked directly with the airline, flights booked through American Express Travel, and prepaid hotels booked through amextravel.com.

Reward Program/Portal: AMEX Membership Rewards

Annual Fee: $550

Effective Annual Fee: unlike the other premium credit cards, the AMEX platinum is NOT a guaranteed net-zero cost. I without a doubt use the $200 in Uber credits, which currently includes UberEats, every year. The Global Entry fee reimbursement can be assumed as well which equals $20 each year since it’s $100 every 5 years to renew. 

That means my annual $550 fee becomes a guaranteed $330. This is when you have to ask if access to AMEX airport lounges, including the highly coveted AMEX Centurion lounge collection, is worth $330 if you don’t take advantage of the other benefits. My personal answer is no. 

Let’s assume you’re on top of squeezing every last drop from this premium credit card. We add $100 for the Saks shopping credit and $200 in airline fee credits. You’re now down to a $30 annual fee. Include statement credits you can earn with AMEX offers through online shopping and that fee can easily go down to $0. I make sure to take advantage of all the above. This is why I keep the AMEX platinum premium credit card in my wallet.

Earning Points: 5 points per dollar on flights booked directly with airlines or American Express Travel, 5 points on prepaid hotels through amextravel.com, 1 point for everything else.

Redeeming Points: Transfer points to 19 airlines and 3 hotels (best value) or redeem directly in the AMEX membership rewards portal for a value of 1 cent per point.

The Points Guy values AMEX Rewards points at 2 cents a point.

Benefit Summary

AMEX Offers – a list of offers is constantly updated on the AMEX website when you’re logged into your account. $10 back when you spend $50 at Cole Haan, $50 back when you spend $200 at Omni Hotels, etc. I check these offers every two weeks. You have to click and “add them to your card” for AMEX to register the purchase and award the resulting statement credit. On average, I earn about $100-$200 back in statement credits each year for purchases I would have normally made.

*I have found the AMEX offers to be more substantial than the Chase offers. I usually earn $100 a year with Chase offers but can earn up to $200 with AMEX offers.

$100 Saks Shopping Credit - $50 statement credit two times a year for purchases with Saks.  

Access to AMEX Lounges and Delta Sky Club (when flying Delta) – gain access to over 1,200 lounges worldwide. AMEX Centurion Lounges are known as the crème de la crème of airport lounges. The space, food, cocktails, wine, and overall aesthetics are outstanding. If you are a frequent traveler and visit airports that have Centurion Lounges, this is a huge perk. Some lounges even have showers and free spa treatments.

$200 in Uber Credits - $15 credit to use towards Uber each month ($20 in December) and automatic Uber VIP status. 

*as of the publication date of this post, you can use your $15 credit towards UberEats

$200 Airline Fee Credit – this includes baggage fees, in-flight refreshments, and other incidental fees charged by airlines. 

Instant Hilton Honors Gold Status and Marriott Bonvoy Gold Elite Status: Hilton Gold Status gets you free WiFi, room upgrades when available, 80% bonus points on paid stays, free continental breakfast, 5^th night free when you book with points, and more. Marriot Bonvoy Gold Elite Status gets you 25% bonus points on stays, room upgrades when available, and a 2:00pm late checkout.

Rental Car Privileges and Status- instant Executive Level status with National Rental Car, Hertz Gold Plus Rewards, and Avis Preferred. Executive status with National is the big perk here. You get to skip the line and head straight to the Executive section and pick whichever car you want. This not only saves time, but the cars in this section are always newer and nicer than the rest. 

Travel Coverage and Insurance - baggage insurance, trip delay insurance, trip cancellation and interruption insurance, car rental loss and damage insurance 

ShopRunner – free 2-day shipping and free returns at over 140 online stores

Marriott Bonvoy Brilliant American Express

Use Marriott Bonvoy Brilliant American Express for all Marriott purchases (hotel, dining, spa…anything purchased at a Marriott property).

Reward Program/Portal: Marriott Rewards

Annual Fee: $450

Effective Annual Fee: after perks like $300 in Marriott statement credits, Global Entry fee reimbursement, and the free annual night award, this card ends up with a net positive annual fee. You’re already down to a $150 annual fee once you subtract the $300 in annual Marriott statement credits. The free night award is easily redeemed for a nightly rate of $150 or more. If you take advantage of the AMEX shopping rewards and the $100 credit at The Ritz and St. Regis, you can easily make money by owning this card.

Earning Points: 6 points per dollar at Marriott, 3 points on restaurants and flights, and 1 point for everything else

The Points Guy values Marriott Rewards points at .8 cents a point.

Benefit Summary

$300 Marriott Bonvoy Statement Credit – receive $300 in statement credits each renewal year for purchases made at participating Marriott Bonvoy properties. This includes purchases at hotel spas, restaurants, and more. 

Annual Free Night Award – receive a free night award for properties with a redemption value of 50,000 points or less each anniversary year.

Instant Marriott Bonvoy Gold Elite Status - earn 25% bonus points on stays, room upgrades, 2:00 pm late checkout, and more.

Travel Coverage and Insurance - baggage insurance, trip delay insurance, trip cancellation and interruption insurance, and car rental loss and damage insurance

AMEX Offers – a list of offers is constantly updated on the AMEX website when you’re logged into your account. $10 back when you spend $50 at Cole Haan, $50 back when you spend $200 at Omni Hotels, etc. I check these offers every two weeks. You have to click and “add them to your card” for AMEX to register the purchase and award the resulting statement credit. On average, I earn about $100-$200 back in statement credits each year for purchases I would have normally made.

ShopRunner – free 2-day shipping and free returns at over 140 online stores 

15 Elite Night Credits – each calendar year receive 15 Elite Night Credits to help you reach the next Marriott Bonvoy status level. 

$100 Property Credit – receive up to $100 when you book a minimum of two nights using a special rate at The Ritz and St. Regis.

Summary

I hope this post helps you decide if you should upgrade to a premium credit card based on your spending habits and travel patterns. You might just find you could make good use and benefit from having all four. I’ve had these four premium credit cards in my wallet for quite some time. I have yet to experience a year where any of these luxury credit cards cost me a penny once I took advantage of all the benefits. It’s worth some thought and the little extra effort to make sure you stay on top of the benefits and receive the maximum value from your credit card.

See my other travel tips and tricks!

Let me know if you have any of these premium credit cards or if you plan to sign up soon! I’d love to hear your thoughts in the comments below.