Monday, August 5, 2013

Is a Super Premium Credit Card Worth It?

I wrote earlier about how I selected a no-fee cash back credit card over a fee based cash back credit card. Is a Premium Credit Card Worth It?. So it would be logical that I would also elect a no fee card over a super premium card. Or is it?

I got an American Express AeroplanPlus Platinum Card, with an annual fee of $499. Why?

A super premium card like this Amex card offers many more features than the one or two enhanced rewards of a fee based card.

I get 1.25 Aeroplan miles for every dollar spent, a 2 for 1 companion flight on a short haul flight, car rental insurance, medical insurance and baggage insurance.

In my case, the 2 for 1 companion flight is enough of a benefit to outweigh the annual fee. In addition, I travel for work, and the combination of the travel rewards with my airline status gives me more chances to use the card. I also make use of the various travel insurances provided with the card.

The decision to select this card was difficult, and I spent a lot of time considering the options available, and if I would truly use the features. At the end of the year, I will add up the benefits to see if they outweigh the annual fee, and if I will decide to renew.

If you are considering one of these super premium cards, I urge you to do the math for yourself, and add-up the benefits against the much higher cost.

What credit card(s) do you have and what made you chose them?

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