When to Renew a High Commission Credit Card
High commission premium credit cards provide cardholders with many benefits, including lounge access, travel scholarships and, in some cases, discounts on flights and hotels. But how do you know if an annual price of more than $ 500 is worth it?
To understand this, there are several different calculations to consider , according to CreditCards.com : the value of the benefits you used and the value of the benefits you will actually use in the future.
The benefits that you have used
To find out the value of the card benefits you have used, “review the card benefits offered and compare them to those you actually used in the last 12 months.” You can quickly search Google for what they are worth (you can find baggage fees for major airlines here ), then subtract that amount from your annual fee.
For example, if you have a Chase Sapphire Reserve, you spend $ 450 per year. But if you are traveling, you may have taken advantage of the $ 300 annual travel credit, Global Entry or TSA Precheck credit, lounge access, travel cancellation insurance, etc. $ 300 travel credit amount US is obviously US $ 300. while lounge access can cost $ 500 per year (although you can get less expensive day passes). But if you travel infrequently and use lounges, you are likely to get your money back.
Benefits you will use
While the card may have been worth it this year, that doesn’t mean it will be in the future. Look forward to the coming year and make some assumptions about the benefits you will reap.
As Stephanie Zito wrote for CreditCards.com, although she originally used the $ 450 Citi AAdvantage Executive World Elite Mastercard, she no longer needs to rely on it for free baggage or other benefits. “However, after flying consistently as an American, I actually earned a level of elite status, which gave me even more advantages in the form of priority boarding and free checked baggage,” she writes. That means she can put that $ 450 in her pocket and spend it on something else.
On the other hand, you may not be flying often enough with one airline, or lounge access may cost you, especially if you are traveling with children and want a quiet place to rest and freshen up.
Obviously, the key to getting the most value is to use the perks you pay for – don’t let them expire at the end of the year .