In episode 26 of Miles Ahead: The Canadian Points Podcast, Daniel, Jeff, and Josh from FrugalFlyer.ca dive into the world of premium credit cards and the value they offer. They discuss how to justify the high annual fees of premium credit cards and maximize their benefits.
Among the topics covered are the defining factors of a premium credit card and the various premium card options available in Canada and the United States. The hosts also provide insights into overcoming the mental challenge of paying a high annual fee, cite examples of easily redeemable credits, and explain how they individually assess the value of keeping these cards in their wallets for the long term.
(00:58) What Makes a Credit Card “Premium”?
Premium credit cards are available from many financial institutions in Canada. While there aren’t many of them, they often command an annual fee of over $400 and have outsized benefits compared to mid-range credit cards.
- A Few of the Most Popular Premium Credit Cards in Canada:
(03:18) Premium Credit Cards in the United States
Premium cards are even more prominent in the United States, with most of the big financial institutions offering several premium products.
- A Few of the Most Popular Premium Credit Cards in the United States:
(04:27) Justifying the High Annual Fees of Premium Credit Cards
High annual fees can be a barrier for many consumers when it comes to premium credit cards, but the smart cardholder can often receive more value than what they pay for the annual fee. You might need to fall into a specific type of consumer, such as one who travels a lot (as many benefits relate to travel), depending on the card.
(08:31) General Benefits of Premium Credit Cards
A few of the benefits premium credit cards offer include free airport lounge access, complimentary hotel or frequent flyer program status, and NEXUS or Global Entry credits. Cardholders can also typically expect better earning rates on their spend and outsized welcome bonuses.
- Learn More: How to Pick a Premium Credit Card
(14:26) Maximizing Premium Credit Card Coupons & Credits
Coupons and credits are designed to reward the premium cardholder with additional value, but these credits are not worth their face value. But if you are smart, strategic, and plan ahead, you can absolutely get a decent amount of value from these coupons.
(26:53) Assessing the Value of Premium Credit Cards
Before applying, you should always assess the value of a premium credit card, especially when it comes to what value you can expect to receive in the first year. Looking at the annual fee versus the value of the welcome bonus and benefits is a great place to start.
(27:48) Personal Strategies for Keeping Premium Cards
The team shares how they approach selecting which premium credit cards to renew after the first year, and which cards they find value in keeping in their wallet.
- Learn More: Should I Renew My Premium Credit Card?
- Listen: Miles Ahead Episode 14 – What’s In Our Wallets?
(35:17) Conclusion
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Just watched the youtube version of the podcast which was excellent as always. With regards to the Chase churning update bringing it in line with the Amex lifetime restrictions on applying for cards, I will say Aeroplan is going the same way. Past language on TD and CIBC’s websites had said you could only apply every 6 months, and then it changed to once a year or they might withhold the bonus, but now it seems to have moved to one of each tier of card with a lifetime restriction regardless of the banking institution. I had applied for each of the TD and CIBC core cards, and had Aeroplan claw back 10,000 points from one of the second year bonuses stating that it had already been issued on the other card. The language on the TD and CIBC sites has changed again and it looks like Aeroplan will withhold bonuses going forward if they think we are getting too many of them. Seems like the days of card churning are truly coming to an end. Perhaps applying for one every few years will skate under the radar.