All information about the American Express Hilton Surpass, Hilton Business, and Schwab Platinum Cards has been collected independently by Miles to Memories.
Credit Card Annual Fees
In a world of maximization, I periodically remind myself that I often get what I pay for. We easily rationalize year one credit card annual fees, which are subsidized by welcome offers. And some solid wins come from simply forking over year two fees, as well. I shared a few examples last year, but things have changed there – I’ll get into that later. First and foremost, I’m updating this list with a few other cards where I’m now shamelessly paying the annual fee year-to-year. Sure, I still go for retention offers, but otherwise, I’ll pay these fees without flinching.
Wells Fargo Choice Privileges Select Mastercard
My second year annual fee just came due on the higher-octane Choice Privileges card, but I have no problem paying it (sadly, no retention offer). The card comes with a plethora of benefits and is the one of the best-earning Choice cards (along with WF’s Autograph Journey, Citi Premier, and Citi Double Cash). But in my situation, one benefit alone makes this card worth paying for over and over – the 30k Choice points each account anniversary. With a bit of flexibility, I’m able to obtain about one cent per point in value. My family and I routinely redeem with Choice, anyway, so we come out substantially ahead of the $95 annual fee.
Citi AAdvantage Business Mastercard
After a few years away, I’m back in Business with this Citi AAdvantage card. I take enough advantage of the 2x categories to warrant paying the $99 annual fee. More importantly, this American Airlines card, like most others, earns 1x Loyalty Point for elite status qualification. The creation of the AAdvantage Business Program, while frustrating, has created more flexibility for this valuable currency which isn’t a bank point transfer partner. The free checked bag and companion cert at $30k spend are nice but unnecessary. In my situation, this card is a rare case where solely the earning structure – leaving out any benefits – justifies paying the annual fee.
Hilton Amex Surpass
When it comes to cards we don’t mind paying for indefinitely, the Surpass came through the back door. This has a lot to do with the huge devaluation of the Hilton Business card, particularly the removal of the free night certificate big spend bonuses. Meanwhile, the Surpass still offers a cert at $15k each calendar year. More importantly, the refreshed Surpass value improved for us, and many of you, despite the fee hike. The $200 annual/$50 quarterly Hilton credits easily outweigh the $150 annual fee. The Surpass still earns 6x in the staple categories of US supermarkets, dining, and gas stations. Individuals unlock perhaps the best mid-tier hotel status available – Hilton Honors Gold – by simply holding the card. Hello, daily food and beverage credit!
What About Those Other Ones?
Again, I previously described a few card annual fees I had no problem paying for, including the Barclays Aviator Blue. Since that article, I upgraded to the Aviator Silver for some easy wins, including 15k more Loyalty Points. My wife and I still pay the $69 annual fees on our legacy Wyndham 2x everywhere cards in return for the 15k anniversary points we each receive. That’s an $81 net win for each of us annually, at a minimum. Despite the upcoming devaluation of the Amex Schwab Platinum’s Invest with Rewards benefit, neither of us have any plans to close ours. Perhaps we’ll be in the minority here.
Credit Card Annual Fees – Conclusion
About 15 months since my last article on the topic, we have new reasons to pay annual fees on at least three other credit cards. In my view, that’s a resounding example of how rewarding and dynamic our remarkable points and travel hobby is. I wouldn’t be surprised if I come back next year with an entirely different set of cards I’m holding onto and why. There’s only one card I see that could be on the chopping block next year, but it has nothing to do with the annual fee. Based on future Amex opportunities, we may move on from the Hilton Amex Surpass, perhaps to upgrade, downgrade, or close and open something new with the slot.
Which credit card annual fees do you continually pay without hesitation?
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I agree about the Choice Select. The yearly points, spending and earning bonus opportunities take a big bite out of the annual fee. I also hold both IHG cards and pay those annual fees each year. 2 free night certs a year + the IHG premium version also gives back 10% of redemptions and provides 4th night free on multi night stays. I also achieve Diamond status by spending $40K annually.
I still keep the Chase Marriott Boundless card for the free night though it’s getting harder to find properties that the certificate can be used at.
Although I have cut back on Hilton the past couple of years, I felt the same about my Business card as you did and cancelled it. Just after cancelling, I received an email offer for the Surpass card with a bonus and no lifetime language. I did over $40K of spending in the first 3 months so got the free night and Diamond to boot and am now well on my way to achieving the IHG $40K spend requirement for IHG Diamond.
Good stuff, Bill!
Benjy,
Could you please explain how you justify the AA business card?
I am an AA hostage due to my location, and I am having a hard time justifying my AA business cards.
The business program is structured so that when you have a business, and you have employee cards, even though I pay the bill, my employees get the loyalty points.
I am curious, how do you find the earning structure beneficial?
Thank you.
docntx,
Depending how the card is used, one can easily earn buckets of miles in the bonus categories, and those who enjoy sharing miles with others can benefit from the AA business program. I’m the only spender in my situation, so I’m able to avoid your loyalty conundrum. Like other cards, this one’s YMMV based on the individual, and I can totally understand why it might not be worth it for you.
great post. any suggestion for a pathway to obtain the high octane WF choice V, for current holders of the naf WF choice V ? I don’t think WF makes an upgrade option nor do they allow the same people to hold both cards simultaneously.
Unfortunately, I have no big ideas absent of cooling off applications for a bit.
Great post , I always look forward to your weekend post.