You may not assume that a high-fee credit card would be a good option for families. Many families avoid credit cards in general, and especially credit cards that may have a fee of hundreds of dollars per year. However, depending on your family’s needs and preferences when it comes to credit cards, there are actually many benefits you may receive from a premium credit card. Here are a few of those benefits.
High Rewards Rates
It’s very common for credit cards with premium fees to also have very high rewards rates. Cards that have no yearly fee or very low yearly fees may only offer 1-2 points per dollar on purchases. However, cards with much higher yearly fees will often offer more points per dollar. With some options as high as 10 points per dollar on certain credit cards. These reward rates definitely aren’t guaranteed. But it’s a good idea to check and see whether you can get better rewards with a higher yearly fee.
Statement Credits
Sometimes, statement credits can make it so that your credit card actually costs less per year than it seems. Say that a credit card’s yearly fee is $500, which is definitely a hefty sum. That fee may come with a yearly statement credit of $200 for certain purchases. In reality, as long as you use the statement credit, you’re only paying $300 per year for that card. Statement credits can significantly help you offset a credit card fee.
Benefits With Other Credit Cards From the Same Issuer
Sometimes, credit cards may work together with each other to offer you significant benefits when you have multiple cards from the same issuer. For example, even without a Chase Sapphire Reserve promotion, you can use the Chase Sapphire Reserve card to redeem points from other Chase rewards cards at a better price per point than they would be worth on their own. You can get 50% more for your points this way.
Transfer Partners
Transferring points is another way you can get more from your points. Many credit cards have certain airline and hotel partners that you can transfer your points to if you want to make purchases directly. If you’re not going to use your points directly with the credit card, you may be able to transfer those points to a participating retailer instead. Plus, depending on the retailer, you may be able to transfer those points so they’re worth more.
Conclusion
Premium credit cards aren’t worth it for everyone. Not all individuals or families will spend enough on their credit cards every year to make a yearly fee of hundreds of dollars worth it. However, some people may spend enough to make it a good idea. If your family regularly makes larger purchases and you want a great set of rewards, a premium credit card could be the perfect option. Just make sure you check out these different benefits so you can maximize your credit card usage.
