Steve E
633
To get a better idea of the value you are receiving from a card you
Sep 29, 2022,05:47 AM
need to estimate the value of the card services you use. For a new card sign up point bonuses can be huge, and earning points with bonus categories like grocery & gas, plus regular purchases can add up (especially with business expenses running through the card). This assumes you have a good way to use for points: premium travel can have huge outsize value, magazine subscriptions not so much.
How many lounge visits do you anticipate? Multiply that number by whatever you would be willing to pay out of pocket to use the lounge.
Premium hotel cards often offer a free anniverary night that could easily be worth $300. And some hotel cards offer a 4th or 5th night free on award travel - that's a 20 - 25% discount. And of course you earn points, sometimes *lots* of points if you work with hotel events like meetings and room blocks.
Then there's all the rest. Insurance, exchange fee waivers, concierge services and such. If you use them maybe some nominal value applies. I can't picture paying for a premium card for this category of benefits.
Add it all up and I believe most people will find that premium cards have positive value if the cardholder is using the benefits. Sometimes too, reviewing the benefits reveals something of value you didn't realize you had.