With so many benefits, rewards, and perks available, we often feel pressured to maximize the use of our credit cards even if we don’t really want or need to. But are all of them really worth the trouble or the hassle? Are some good benefits just in theory? How much should you travel before travel-focused credit cards make sense?
One person was wondering about the benefits included with his American Express Platinum card and took his concerns to the people in the r/CreditCards community on Reddit. This is a community focused on how to best use credit cards and squeeze every last bit of value out of them. Here is what they said.
The Original Post
An American Express credit card.
The author of the original post says that they only have one credit card: the American Express Platinum card. They said they don’t travel that much, “little to none”, in fact, but since the platinum card includes access to Priority Pass, they are wondering if they should take advantage of it on the off chance they pass through an airport.
They paid the $55 fee to get into the Admiral’s Club one time before they had the American Express Platinum card and really enjoyed it.
That being said, they asked the community if it’s really worth it or if they should just dump any card that includes Priority Pass and only use cards that don’t have it since those cards will have more useful benefits.
Please remember that all the comments in the original thread, as well as this article, are opinions. You should not follow someone else’s advice on credit cards until you have a solid understanding of your own finances and credit first.
The Community Response
The American Express logo on a flag.
The people who chose to respond were pretty united on the topic of Priority Pass and the American Express Platinum card.
First, they mostly agreed that Priority Pass is a nice-to-have perk only if you already travel frequently. It definitely is not a reason to get any card by itself, and certainly not enough to make the difference between two cards. It has such low value and is used so infrequently even by those who travel often that you should not include it in your list of benefits when deciding which card to get.
Additionally, users said that Priority Pass is really only useful for those who travel abroad, as very few airports in the United States have lounges on Priority Pass. The ones that do vary wildly in terms of quality and the food and drinks available. One user likened the food to a “high-quality high school lunch”.
Another user said that Priority Pass is only worth it if you fly in East Asia.
That being said, if you have a card you like and benefits you enjoy and it also has a Priority Pass, then you should definitely take advantage of it when you have the chance. But that’s true only for a few of the people who responded. Some took issue with the quality of the Priority Pass lounges, the free food, and other amenities within the exclusive lounge areas. According to them, the lounges leave much to be desired, and they say that you are essentially paying a fee to get “free” food that isn’t very good.
Second, the American Express Platinum card is a truly fantastic option with many valuable benefits that more than outweigh the annual fee of $500, but only if you are a frequent traveler. Most of the benefits of the American Express Platinum card relate to travel like hotels, airfare and Uber, eating out, rental car benefits and coverage, access to exclusive American Express locations, events, and pricing, and more. If you’re not a frequent traveler (or at least enjoy visiting expensive locations) then it is unlikely you will use enough of the benefits or credits to justify the high annual fee.
For a more concrete example, one user said that they travel with a group of three people between two and three times every year. In that case, the Priority Pass membership saves them significant amounts of money that more than makes the annual fee worth it. In addition to the other credits and perks, they usually end up positive at the end of the year. If this sounds like you, then it might be worth looking into a travel-focused card like the American Express Platinum.
In the end, most users recommended that the author downgrade their American Express card to Gold or another lower-tier card with more relevant benefits and perks. Others recommended they cancel their American Express account altogether, as it is usually focused on travel and other high-end perks.
Which Credit Card is Right for You?
We have covered in varying detail how to decide which credit card you should use, and we have even compared the benefits of sticking to debit cards over credit cards as well. But as with almost everything, the answer depends a great deal on your personal preferences, finances, credit score, and what you want to do with it.
If you don’t already have a credit card, there’s no need to rush out and get one unless you need to finance large purchases or need to build credit.
Once you do decide that you need one, take some time to compare the benefits, interest rates, perks, credit limits, and rewards. Start with the free cards and only begin comparing the cards with annual fees if you are unsatisfied with the free versions. In that case, only pick a card whose perks will outweigh the annual fee, otherwise, it isn’t worth it.
Take some time to decide whether you want a card that offers cash back or points, or some other perks (like frequent flyer miles or other rewards). Don’t try and adjust your lifestyle to the perks of the card, try to find the card that fits your existing lifestyle and spending habits.
If you try to maximize the benefits of a card that is designed for someone outside your lifestyle or spending habits you will quickly find yourself spending more than you can afford and buying things you don’t want just to meet a purchase minimum or qualify for monthly credits. Credit cards should be an added benefit to your life — an addition to your usual routine — instead of just one more chore or task you need to keep track of.
For example, read our guide here about why some people choose credit cards that offer miles instead of straight cash back. Like the American Express Platinum card, the more you travel, the more valuable miles rewards and travel perks become. On the other hand, if you don’t travel and don’t have any outsized purchases in particular areas, cash back would be more useful.
To help, you can also read our guide here about how much the average millennial can expect to earn with a cash-back credit card in a year. The information is based on the average expenses of the millennial generation to give you a good benchmark for your own comparisons. In some cases, getting a cash back credit card is a good idea to start with before you figure out what perks you enjoy.
Of course, there are those who make maximizing credit card benefits an entire hobby. They “churn” through credit cards for their sign-up bonuses and perks. Doing it right can lead to many nice benefits, but doing it wrong can lead to massive debt and a ruined credit score.
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