The Second Most Expensive Annual Credit Card Fee Will Make You Pause
Most Americans use credit cards, and if you can avoid common credit card mistakes, they can do a lot more than just cover everyday purchases. Credit cards can earn cash back and even unlock travel perks. But of all the cards available to most people, the American Express Platinum Card earned a reputation as one of the most recognizable. While it has great perks and rewards, it also has a staggering annual fee. At $895 a year, it carries one of the highest fees in the industry. Though it's not quite as exclusive as the Amex Centurion Card, many people still consider the Platinum Card worth the price.
The Platinum Card is best known for travel and lifestyle rewards. Card holders gain access to airport lounges, annual dining credits, and Amex's Membership Rewards program, which allows points to be redeemed for flight and hotels. Additional perks such as Uber cash, a credit to apply for TSA PreCheck, streaming rebates, and complimentary hotel status upgrades further enhance its appeal.
Do the Amex Platinum's perks offset the annual fee?
Whether the American Express Platinum Card's benefits outweigh its high costs really comes down to how you use the card. Individuals who travel frequently may make good use of the hotel perks and airport lounges. With its biggest rewards categories coming from flight and hotel purchases, card holders who travel may often find that the annual fee pays for itself. On the other hand, casual users who don't travel as much and only rely on features like its shopping credits may struggle to justify the card's costs.
If you're considering the Platinum Card, it can help to compare how the rewards stack up against your routine expenses. If you make sure you're using your credit card for the right types of purchases outside of flights and hotels — such as streaming subscriptions, phone bills, and Uber rides — you might wind up making good use of the Platinum Card's rewards and included purchase protections. While the Amex Platinum can provide great benefits and is seen by some as a status symbol, there are other premium credit cards — many with lower fees — that may align more closely with your spending habits.