Is Your Premium Credit Card Paying For Itself?

The Annual Amex Plat Accounting

by Robert McGarvey

The $695 fee for the American Express Platinum Card seems hefty – it is hefty – and in my case it’s another $195 for a spouse card.  But every year when I do the math I’ve found the card pays for itself.

How about this year?

Even if you don’t carry Amex Plat, but another premium card – Chase Sapphire Reserve at $550 for instance – you need to do this math annually. What value does the card deliver to justify its hefty fee?

Should you do this exercise for *every* card – such as the under $100 Southwest card in my wallet or a similarly priced Alaska Air card that I recently acquired? Probably but I can’t say I am that much of an accountant.  I do cut cards I am not much using – in recent years that’s been cards with United and American Airlines, neither of which is in my travel plans. But airline cards at least have additional benefits – such as early boarding – that help justify them as long as they are used.

So am I ahead with Amex Plat?

For starters the spousal card is paid for with the Plat $199 CLEAR credit which has made that service free for several years. In my tests I get through security with TSA Pre reasonably fast, I don’t feel a need for CLEAR, so don’t take advantage of a discounted spousal add on. But my wife uses and likes CLEAR so that perk goes in the plus column.

What about the $695 for my card?  Amex makes it shockingly easy to see how you’re doing.  At the top of the screen for the Plat card there’s a tab headed Rewards + Benefits.  Click it and your research is done for you.

For starters I’ve used $136 of the annual $200 airline fee credit which in my case is usable on Delta. That’s reimbursement for miscellaneous niggling fees – for a better aisle seat in coach for instance.

There’s a $200 credit with Uber that’s good for both Uber and Uber Eats. 

There’s a $240 digital content credit which pays for most of my New York Times subscription.

There’s a $100 Saks credit, issued in two $50 tranches.

That puts me at $676.

I’ve also had club visits, both Delta’s and the Centurion Club. Amex charges $50 for a Centurion guest but I don’t think it’s worth that much.  Let’s put this at $25@ and arbitrarily cap it at $200.

I’m at $876 in value on a card that costs me $695 and I still may use the $200 hotel credit before year-end. I’m also not counting the $12.95 I get monthly to reimburse the fee for a Walmart+ membership which I rarely use but it costs me nothing.

I also get status at Hilton and Marriott Bon Voyage and with several rental car companies.  And Amex Plat comes with good travel insurance and protections as well as an excellent purchase protection plan

Plus, The Points Guy values Amex miles at 2 cents apiece. Spend just $1000/month on the card and that’s $240 in points in a year.

The verdict: of course I’m keeping Plat another year.

Alaska Air Visa Signature Card

I know, I’d said in a past column I wouldn’t be getting it but I got it and the allure for me of this Alaska Air card – aside from the $95 fee and the Oneworld membership – is a 60,000 miles bonus for spending $3000 in the first 90 days, plus a $99 Companion Fare.  There’s also the usual priority boarding.

Those miles are worth $840 per TPG’s calculus.

As I looked at my bucket of rewards points and miles I had noted it was down to a few drops and of course the  only smart way to increase the stash is with a welcome bonus.  Repeat that: welcome bonuses are the only way to really grow a miles balance fast and with minimal pain. Yes, the Alaska Air route map is small but I assumed the Hawaiian Air merger would go through and I also knew Iberia is in Oneworld and Spain is my favorite place to visit.  You can guess what I’m eyeing as the destination for my bonus miles.

So I signed up and already have 63477 miles in my account.  All for buying some groceries at Trader Joe’s. 

It’s the only way to easily bump up total rewards miles.  If you want more miles find a card – preferably a low cost card – and go for it.