I’ve been thinking a lot about premium credit cards of late. Just a few days back, we saw the relaunch of the ‘new’ Chase Sapphire Reserve card. Over the years, we’ve seen a trend, which was started by Amex, later copied by others. I call it the three step trick. Firstly, increase the annual fee on a card, Secondly, offer credits split across different time frames via partner brands. Thirdly, market the card as “up to $2,000 in value” to give the illusion of outsized value. Now, it seems like the Amex Platinum Card may be doing a one up on the Sapphire Reserve by raising their fee to $895. The question is, would you still be willing to pay?
Also Read: Changes coming to Amex’s Platinum Cards this Fall
Massive Amex Platinum Card Annual Fee On the Way
Amex plans to refresh both versions of their coveted Platinum cards this Fall. We’ll see Amex come up with new refreshed versions of the personal and business Platinum cards. We’ve already seen credible rumors pointing towards a massive annual fee of $895. Wow! It almost seems impossible to believe that when I initially got the card, the annual fee was a paltry $450. That $450 annual fee rose to $550 in 2017, then to $695 in 2021. Now in 2025, we’ll see a massive $895 annual fee. So, if you’re like me and got the Amex Platinum Card before 2017, then your fee has doubled in less than 9 years of holding the card.
Justifying the Fee
Obviously, we have to wait until the changes are announced and many may find the new credits suitable. However, I think that the premium credit card space has lost its allure. It’s no longer about exclusivity or access. It’s about coupons that you can clip every month. I wrote this piece explaining why I stepped aside from the all the buzz around the Chase Sapphire Reserve and opted not to go for it.
Tail Wagging the Dog
When it comes to miles and points, I like to follow certain first principles. One of my core principles is whether it’s the tail wagging the dog. In essence, I don’t want to get a card just for the heck of it, just because it’s offering an amazing welcome bonus. Also, I don’t want to get a card and then alter my buyer behavior to justify the fee.
My first principle is to start with my travel goal. My credit card strategy starts downstream from there. In my case, I primarily love using miles and points for international travel. Therefore, I don’t have a single co-branded credit card from a US based airline. Also, I have co-branded Marriott and Hilton cards which give me elite status and help me cover stays in almost all major cities around the world.
In short, even if Delta or United come out with an amazing offer on one of their cards, I tend to pass.
Why is this example relevant? When it comes to premium credit cards, I see many people fall prey to the tail wagging the dog syndrome. People get the card for the 150k bonus or higher and then say but I can always switch from brand A to B, but I can always do X instead of why, but but …. That’s precisely my point. Everyone has their own preference, but I choose to keep it simple. I don’t want to alter my buyer behavior simply to get a monthly credit on a credit card.
The Pundit’s Mantra
So, that brings us to the moot question, would you be willing to pay almost $900 for the Amex Platinum Card? Or for that matter, any card? As fees keep rising, issuers are also looking to lock in customers who want one single premium credit card. The annual fees are so high now that most customers will have to make a choice, as carrying multiple premium credit cards each priced at $800-$900 per year would simply become way too expensive for most people in the long run.
Are you paring down your stash of premium credit cards, choosing one ecosystem over the other? As annual fees continue to rise, what does your strategy look like going forward? Tell us in the comments section.
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New Credit Card Offers
Chase Sapphire Cards
- Earn 100,000 bonus points and a $500 statement credit with the Chase Sapphire Reserve Card
- Earn 200,000 bonus points with the Chase Sapphire Reserve Card for Business
Co Branded Hilton Honors Cards
- Earn 100,000 bonus points and a $100 statement credit with the Hilton Honors American Express card
- No fee for the first year, earn 130,000 bonus points with the Hilton Honors American Express Surpass card
- Earn 175,000 bonus points with the Hilton Aspire card, in addition to 1 free night certificate each year
- Earn 175,000 bonus points with the Hilton Business Card
Co-branded Delta SkyMiles cards
- No annual fee for the first year, earn 80,000 bonus miles with the Delta SkyMiles Gold American Express Card
- Earn 90,000 bonus miles with the Delta SkyMiles Platinum American Express Card
- Earn 100,000 bonus miles with the Delta SkyMiles Reserve American Express Card
- No fee for the first year, earn 90,000 bonus miles with the Delta SkyMiles Gold Business American Express Card
- Earn 100,000 bonus miles with the Delta SkyMiles Platinum Business American Express Card
- Earn 110,000 bonus miles with the Delta SkyMiles Reserve Business American Express Card
Marriott Credit Cards
- Earn 60,000 points and 1 free night with the Marriott Bonvoy Bold Card by Chase
- Earn 5 free nights with the Marriott Bonvoy Boundless Card
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Seeing as a few of the comments concern the waits at the lounges, perhaps that is part of the AmEx plan. Having less people with the card means less people in the lounge.
Interesting take, but I’m not sure if they as an issuer would want to turn genuine cardholders away if lounge overcrowding was the only problem. Yes, reducing guest access definitely helps it, but I’m guessing that they’re probably doing this because a) they have data showing that there’ll be enough breakage even with a higher annual fee b) they won’t see an increase in customer attrition rates
The value proposition will need to increase to warrant continued use of this card!
@JimBeesley: I agree!
Been an Amex Platinum only customer for over 20 years at this point. This fee raise may be enough for me to jump ship to my bank Visa credit card – I cover the charges monthly anyway so doing Visa won’t inconvenience me as much as $1000 fee will. In fact I’ll be saving the fees I was paying Amex. I used to get a lot more benefits but right now I pretty much only get the $200 Uber credits and $200 streaming services credits which are still below the current annual fee. They really need to think this through especially if they want to retain loyal single card users like myself
@Cassandra: Yes, it will be interesting to see if long time cardholders stick around once the card is refreshed in Fall
I have both the CSR and Amex Platinum (plus 15 or so others). I would keep both even at $1000 AF. Personally I get value from them. I’m retired, well set financially and enjoying nice hotels and restaurants. Therefore I get value from things like the Amex FHR credit (which will likely go up) and the CSR Edit credit. Also the CSR dining credit was found money. I understand this doesn’t fit everyone’s lifestyle but it is perfect for mine and saves me lots of money I would spend anyway.
@RetiredGambler: Great that you can get so much value out of them!
I have generally gotten pretty close to recouping the $695 fee, especially with more frequent use of the Centurion Club at LGA. But it will take a damn good new set of benefits to make up the extra $200. Might start playing card roulette for the bonuses instead.
@Jess: Yes, the new benefits need to be easy to use, else people might jump ship.
May cancel the business platinum and maybe personal Platinum as well. None of the benefits really entice me anymore. They killed the 35% points back rebate for the biz version so what’s left? I don’t get the FedEx rebate offers for shipping invoices anymore and 4x on shipping is gone. Now that the C1 lounge is open in LAS and is much nicer, I have an option when I am flying out of there.
@UnitedEF: That’s precisely why I canceled the Biz Plat as well. 35% rebate going away, I always found it difficult to use Dell and Adobe credits.
I just canceled my platinum card last month. Had it for seven years but it’s not an exclusive card anymore and the long waits at Amex lounges just dont warrant the annual fee. The statement credits have become incrementally more difficult to use and just didn’t want to deal with it any more. Seem like it was the right choice given the higher annual fee on the horizon
@justin: Yes, the Centurion lounge wait overcrowding issues are a big problem for many
I thought the CSR increase was pretty steep and kept me away, but at $900 I might reconsider holding onto the Amex Plat and downgrade to a Green or something as well.
@Jinked_k: That would be a sound strategy!
I wonder if they will increase AU fees as well..$175 per is doable for me personally. I’ll probably stick with the card anyways bc I do get good value out of it instead of switching lanes all the time to justify so much. We’ll see. I prefer if they just reduce the couponing and just do multipliers for travel and lifestyle categories. But who knows..
@AlexH: I’d surprised if they don’t increase AU fees.