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Editor’s note: This is a recurring post, regularly updated with new information and offers.
Many credit card newbies are skeptical of anything with an annual fee. It’s a valid question to ask: Why pay money to use a card when there are so many options without annual fees?
The truth is that most rewards cards with annual fees provide far more value than they charge, assuming you use the benefits. In fact, several top travel cards can easily provide more than $1,000 in value in the first year.
Today, we’ll walk you through over a dozen cards that provide around $1,000 in value (or more) in the first year.
Methodology
Before we dig into it, let’s talk about how we quantify the value a specific card provides. For each of our top travel and rewards credit cards, we’re looking at:
Welcome offer: We use TPG valuations to determine how much bonuses are worth.Annual statement credits: If the card offers travel credits, dining credits, resort credits or other annual statement credits, we include these in the card’s total value.Automatic elite status: We use the TPG valuation of how much specific elite status tiers are worth for each program.Quantifiable perks and benefits: Not all perks and benefits can be assigned a specific dollar amount. We include those that can be more easily quantified than others, though we do make a few assumptions in this category.Annual fee: We subtract the annual fee once we’ve tallied a card’s overall value. Only cards with a net value of at least $1,000 after factoring in the annual fee make this list.We’re only including quantifiable perks in this equation. Many cards include perks that aren’t directly tied to a dollar amount — such as Centurion Lounge access, Capital One Lounge access and elitelike perks such as priority boarding. We also exclude anniversary benefits that only apply to the second year of card membership (and beyond).
Please note that just because a card didn’t make this list doesn’t mean it can’t provide this type of value. Cards not on this list provide value on a case-by-case basis.
Cards that provide $1,000-plus in first-year value
CardWelcome offer value*Total potential first-year value Annual fee Net first-year value The Business Platinum Card® from American Express$3,000$6,544$695 (see rates and fees)$5,849The Platinum Card® from American Express$1,600$5,309$695 (see rates and fees)$4,614Hilton Honors American Express Aspire Card$900$4,569$550 (see rates and fees)$4,019Marriott Bonvoy Brilliant® American Express® Card$798$3,693$650 (see rates and fees)$3,043IHG One Rewards Premier Credit Card$825$2,265$99$2,166Hilton Honors American Express Surpass® Card $780$2,200 $150 (see rates and fees)$2,050Ink Business Preferred Credit Card$2,050$2,050$95$1,955Capital One Venture X Rewards Credit Card $1,388$1,788$395 (see rates and fees)$1,393Capital One Venture Rewards Credit Card$1,388$1,488$95 (see rates and fees)$1,393Chase Sapphire Preferred Card $1,230$1,376$95$1,281Chase Sapphire Reserve$1,230$1,786$550$1,236American Express® Gold Card$1,200$1,440$250 (see rates and fees)$1,190*Welcome offer value is determined using TPG valuations and is not provided by or reviewed by the issuer.
The information for the Hilton Honors Aspire Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
The Business Platinum Card from American Express
Here’s what to know about the Amex Business Platinum.
THE POINTS GUYWelcome offerEarning rateAnnual feeEarn 150,000 Membership Rewards points after you spend $15,000 on eligible purchases within the first three months of card membership5 points per dollar on flights and prepaid hotels booked at American Express Travel1.5 points per dollar on up to $2 million in eligible purchases in the U.S. per calendar year with electronic goods retailers; software; cloud service providers; construction materials and hardware supplies; and shipping providers on purchases of $5,000 or more1 point per dollar spent on other eligible purchases$695 (see rates and fees)
Quantifiable benefits:
Welcome bonus ($3,000 value, according to TPG valuations)Up to $200 in annual airline incidental statement credits on one selected airline ($200 value)*Up to $400 in Dell statement credits (for U.S. purchases) — $200 semi-annually ($400 value)*Up to $100 for Global Entry or up to $85 TSA PreCheck application fee every four or 4½ years ($100 value)Complimentary Marriott Bonvoy Gold elite status ($805 value, according to TPG valuations)*Complimentary Hilton Honors Gold elite status ($1,220 value, according to TPG valuations)*Up to $360 in annual statement credit on all Indeed hiring and recruiting products and services to post open positions and find talent, up to $90 per quarter ($360 value)Up to $189 in Clear Plus statement credits toward an annual Clear membership for expedited airport security ($189 value)Up to $150 annual statement credit for Adobe on select purchases, including Adobe Creative Cloud and Acrobat Pro DC ($150 value)Up to $120 in annual statement credit for wireless telephone services, up to $10 per month ($120 value)* Enrollment is required for select benefits.
Net first-year value: $5,849
For small-business owners, the Business Platinum Card® from American Express can yield a ton of value in the first year, thanks to the array of perks on the card. Most benefits come as statement credits, many of which specifically connect to business-related expenses. The Business Platinum has over $1,400 in statement credits that you could maximize.
However, the card also includes many luxury travel benefits, like hotel status with both Marriott and Hilton. In addition, you’re also eligible for a 35% rebate for using Pay with Points on premium-class flights on any airline (or for economy tickets on your designated airline for the $200 fee credits).
Note that American Express plans to remove the Dell, Indeed and Adobe credits from Jan. 1, 2025.
Read our full review of the Amex Business Platinum for more details on this card.
Application link: The Business Platinum Card from American Express
The Platinum Card from American Express
Here’s what to know about the Amex Platinum.
THE POINTS GUYWelcome offerEarning rate Annual fee Earn 80,000 Membership Rewards points after you spend $8,000 on purchases within the first six months of card membership5 points per dollar on flights booked directly with airlines or with American Express Travel (on up to $500,000 on these purchases per calendar year, then 1 point per dollar) and on prepaid hotels booked with Amex Travel1 point per dollar for other eligible purchases$695 (see rates and fees)
Quantifiable benefits:
Welcome offer ($1,600 value, according to TPG valuations)Up to $200 in Uber Cash annually (for U.S. services) — $15 per month plus an additional $20 in December ($200 value)*Up to $200 in airline incidental statement credits per calendar year ($200 value)*Up to $100 in annual Saks Fifth Avenue statement credits — $50 semi-annually ($100 value)*Up to $100 for Global Entry or up to $85 TSA PreCheck application fee every four or four and a half years ($100 value)Up to $200 in statement credits on prepaid bookings at Amex Fine Hotels + Resorts or The Hotel Collection properties made through American Express Travel. The Hotel Collections requires a two-night minimum stay ($200 value)*Up to $20 monthly statement credits (up to $240 value annually) for select digital entertainment and streaming services*Up to $300 annual statement credits for select Equinox memberships, including the app — subject to auto-renewal ($300 value)*Up to $155 Walmart+ statement credit, though Plus Up Benefits are not eligible ($155 value)Up to $189 in Clear Plus statement credits toward an annual Clear membership for expedited airport security ($189 value)*Complimentary Marriott Bonvoy Gold elite status ($805 value, according to TPG valuations)*Complimentary Hilton Honors Gold elite status ($1,220 value, according to TPG valuations)** Enrollment is required for select benefits.
Net first-year value: $4,614
The Platinum Card from American Express is one of the best travel cards available for luxury travelers because of its extensive lineup of perks — and the ones listed above are only part of the equation. You’ll also get things like rental car privileges, access to Amex Fine Hotels + Resorts, travel and purchase protections, access to the Amex Platinum concierge and unmatched access to airport lounges, including Centurion Lounges, Priority Pass lounges and Delta Sky Clubs* when traveling on same-day Delta flights (enrollment required).
*Effective February 1, 2025: Eligible Platinum Card Members will receive 10 Visits per Eligible Platinum Card per year to the Delta Sky Club or to Grab and Go when traveling on a same-day Delta-operated flight.
You could even be targeted for a higher welcome offer via the CardMatch Tool (offer subject to change at any time).
Read our full review of the Amex Platinum for more details.
Application link: The Platinum Card from American Express
Hilton Honors American Express Aspire Card
Here’s what to know about the Hilton Amex Aspire.
THE POINTS GUY
Welcome offer Earning rate Annual fee 150,000 points after you spend $4,000 on purchases in the first three months of card membership14 points per dollar spent on eligible purchases at hotels and resorts in the Hilton portfolio7 points per dollar spent on flights booked directly with airlines or Amex Travel, car rentals booked directly from select car rental companies, and U.S. restaurants3 points per dollar spent on other eligible purchases$550 (see rates and fees)Quantifiable benefits:
Welcome bonus ($900 value, according to TPG valuations)Complimentary Hilton Diamond elite status ($2,880 value, according to TPG valuations)Up to $200 in annual airfare statement credits ($50 quarterly)*Up to $400 in annual Hilton resort statement credits ($200 biannually)*Up to $189 in statement credits per year when you sign up for a Clear Plus membership and pay with your card* Enrollment is required for select benefits.
Net first-year value: $4,019
The Hilton Honors Aspire is the top-tier card in the Hilton cobranded card lineup. If you stay with Hilton regularly, you can get a ton of value out of the card’s benefits. In addition to the quantifiable benefits listed, you’ll also get cellphone protection, a free night each year (plus a second if you spend $60,000 in a calendar year and a third if you spend $30,000 on your card in a calendar year) and complimentary National Car Rental Emerald Club Executive status.
Read our full review of the Hilton Aspire Card for more details.
Marriott Bonvoy Brilliant American Express Card
Here’s what to know about the Bonvoy Brilliant.
THE POINTS GUYWelcome offerEarning rateAnnual feeEarn 95,000 points after you spend $6,000 in purchases on the card in your first six months.6 points per dollar on eligible purchases at hotels participating in the Marriott Bonvoy program3 points per dollar at restaurants worldwide and on flights booked directly with airlines2 points per dollar on other eligible purchases$650 (see rates and fees)
Quantifiable benefits:
Welcome bonus ($798 value, according to TPG valuations)Complimentary Marriott Bonvoy Platinum Elite status ($2,495 value, according to TPG valuations)*Up to $25 a month in dining statement credits each calendar year ($300 value)Up-to-$100 Global Entry or up to $85 TSA PreCheck application fee credit every four or four and a half years ($100 value)* Enrollment is required for select benefits.
Net first-year value: $3,043
Beyond the above benefits, the card also comes with 25 elite night credits, Priority Pass lounge access (enrollment is required) and select travel protections. In addition, we’re not including the annual free night award (worth up to 85,000 points) in the year one value since you need to renew your card to receive it. All of these perks could potentially add even more value to the card.
Remember that our valuation for Platinum Elite status is based on the assumption that you’ll frequently stay with Marriott. The value you get from that benefit will depend on your travel habits.
Read our full review of the Marriott Bonvoy Brilliant for more details.
Application link: Marriott Bonvoy Brilliant American Express Card
IHG One Rewards Premier Credit Card
Here’s what to know about the IHG One Rewards Premier.
THE POINTS GUYWelcome bonusEarning rateAnnual feeEarn 165,000 bonus points after spending $3,000 on purchases within the first three months of account opening. Offer ends April 3.10 points per dollar on IHG purchases5 points per dollar at gas stations, restaurants and on travel purchases3 points per dollar on everything else$99
Quantifiable benefits:
Sign-up bonus ($825 value, according to TPG valuations)Complimentary IHG Platinum elite status ($1,290 value, according to TPG valuations)Up-to-$100 Global Entry, TSA PreCheck or Nexus application fee creditUp to $50 United Airlines TravelBank Cash each calendar yearNet first-year value: $2,166
The IHG One Rewards Premier packs quite the punch for such a low annual fee. In addition to the above benefits, you’ll also get 20% off when buying IHG points, a 10,000-point bonus after you spend $20,000 in a year, a fourth-night award perk and travel protections. In addition, like the Bonvoy Brilliant, we’re not including the anniversary reward night (worth up to 40,000 points) in this calculation since you must renew your card to earn one.
And like other hotel cards, the elite status valuation assumes you frequently visit IHG properties, so that perk could be worth more (or less) depending on how often you take advantage of it.
Read our full review of the IHG Premier Card for more details.
Application link: IHG One Rewards Premier card
Hilton Honors American Express Surpass Card
THE POINTS GUY
Here’s what to know about the Hilton Amex Surpass.
Welcome bonusEarning rateAnnual feeEarn 130,000 Hilton Honors bonus points after you spend $2,000 in purchases on the card in the first three months of card membership.12 points per dollar spent on eligible purchases at hotels and resorts in the Hilton portfolio6 points per dollar spent at eligible U.S. restaurants, U.S. supermarkets and U.S. gas stations4 points per dollar on U.S. online retailer purchases3 points per dollar on other eligible purchases $150 (see rates and fees)Quantifiable benefits:
Welcome bonus points ($780 value, according to TPG valuations)Complimentary Hilton Gold elite status ($1,220 value, according to TPG valuations)Up to $50 in statement credits (up to $200 annually) when using the card for Hilton purchasesNet first-year value: $2,050
The Hilton Honors Surpass is the mid-tier card in the Hilton cobranded card lineup. If you can meet the minimum spend requirement to unlock the entire welcome offer, you can earn 130,000 points, which TPG values at $780.
Even if you’re an infrequent Hilton guest, Surpass cardholders enjoy automatic Gold status, which unlocks perks such as 80% bonus points on stays, space-available room upgrades, breakfast (or an on-property credit, depending on your destination) and a fifth-night free when you book a stay entirely with points. You’ll also get complimentary National Car Rental Emerald Club Executive status.
In addition to the benefits listed, you’ll get a complimentary night reward each year after spending $15,000 on purchases on your card in a calendar year.
Read our full review of the Hilton Surpass card for more details.
Application link: Hilton Honors American Express Surpass Card
Ink Business Preferred Credit Card
Here’s what to know about the Ink Business Preferred.
THE POINTS GUYWelcome bonusEarning rateAnnual fee100,000 bonus points after you spend $8,000 on purchases in the first three months from account opening3 points per dollar on the first $150,000 spent in combined purchases in the following categories each account anniversary year: travel; shipping purchases; internet, cable, and phone services; advertising purchases with social media sites and search engines1 point per dollar on everything else$95
Quantifiable benefits:
Welcome offer ($2,050 value, according to TPG valuations).Net first-year value: $1,955
In addition to the card’s fantastic sign-up bonus (now with a lower spending requirement), this card’s primary value is its earning structure, which is hard to quantify since it depends entirely on your spending habits.
The card only charges a $95 annual fee, making it easy to consider keeping in the long term. You’ll also have access to a 25% redemption bonus through the Chase Ultimate Rewards portal, cellphone protection and extensive travel coverage.
Read our full review of the Ink Business Preferred for more details.
Application link: Ink Business Preferred Credit Card
Capital One Venture X Rewards Credit Card
Here’s what to know about the Venture X.
THE POINTS GUYWelcome offerEarning rateAnnual fee 75,000 bonus miles once you spend $4,000 on purchases within the first three months from account opening10 miles per dollar on hotels and car rentals booked via Capital One Travel5 miles per dollar on flights booked via Capital One Travel2 miles per dollar on everything else$395 (see rates and fees)
Quantifiable benefits:
Welcome offer ($1,388 value, according to TPG valuations)$300 credit annually for bookings made through Capital One TravelUp to $100 in statement credits for either TSA PreCheck or Global EntryNet first-year value: $1,393
The Venture X card launched in 2021 and immediately made a splash in the realm of premium credit cards. Besides the quantifiable benefits above, you’ll also get complimentary access to Capital One Lounges, more than 1,300 worldwide Priority Pass lounges and over 100 Plaza Premium lounges — including two guests.
In addition, Venture X cardholders can add multiple authorized users at no charge(see rates and fees), and they also get these lounge privileges with up to two guests. Other perks include complimentary cellphone protection, access to Capital One’s new Premier Collection of luxury hotels, Hertz President’s Circle elite status*, and trip cancellation and interruption insurance as a Visa Infinite card.
Note that this calculation omitted the 10,000 bonus miles that you’ll receive every account anniversary since this perk doesn’t begin until you renew your card — so it’s thus (technically) a benefit in year two.
Read our full review of the Capital One Venture X for more details.
*Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at the upgraded status level through Dec. 31, 2024. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.
Application link: Capital One Venture X Rewards Credit Card
Capital One Venture Rewards Card
Here’s what to know about the Venture.
THE POINTS GUYWelcome bonusEarning rateAnnual fee75,000 bonus miles when you spend $4,000 on purchases in the first three months from account opening5 miles per dollar on hotels and rental cars booked through Capital One travel2 miles per dollar on every purchase$95 (see rates and fees)
Quantifiable benefits:
Sign-up bonus ($1,388 value, according to TPG valuations)Up-to-$100 Global Entry or TSA PreCheck application fee credit ($100 value)Net first-year value: $1,393
While the Venture Rewards card doesn’t have a long list of benefits, it’s hard to resist that 75,000-mile bonus if you can spend the $4,000 in the first three months from account opening.
The card also comes with an up-to-$100 Global Entry or TSA PreCheck enrollment fee credit, and you can also transfer your miles to 15-plus travel loyalty partners. However, be sure to compare the card to the Venture X to ensure you’d be better off with the more affordable option.
Read our full review of the Capital One Venture Card for more details.
Application link: Capital One Venture Rewards Credit Card
Chase Sapphire Preferred Card
Here’s what to know about the Sapphire Preferred.
THE POINTS GUYWelcome bonusEarning rateAnnual fee60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening5 points per dollar on travel booked through the Chase travel portal5 points per dollar on Lyft purchases (through March 2025)5 points per dollar on Peloton equipment and accessory purchases of $150 or more (through March 2025, with a limit of 25,000 bonus points)3 points per dollar on dining and select streaming services2 points per dollar on all travel not booked through the Chase travel portal1 point per dollar on everything else$95
Quantifiable benefits:
Welcome bonus ($1,230 value, according to TPG valuations)Up to $50 annual credit on hotel stays purchased through Ultimate RewardsOne-year Doordash Dash Pass subscription, a $96 value (activate by Dec. 31, 2024)Net first-year value: $1,281
The Chase Sapphire Preferred is one of the best cards for beginners — it comes with an excellent sign-up bonus and a low annual fee. Additionally, you’ll have access to a 25% redemption bonus on travel booked through the Chase Ultimate Rewards portal.
You’ll also receive a 10% points bonus on your cardmember anniversary based on the total amount you spent in the previous year. However, since the value of this perk depends on your spending activity, it’s not included in the above calculation.
Read our full review of the Sapphire Preferred for more details.
Application link: Chase Sapphire Preferred® Card
Chase Sapphire Reserve
Here’s what to know about the Sapphire Reserve.
THE POINTS GUYWelcome bonusEarning rateAnnual fee60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening10 points per dollar on hotels and car rentals purchased through Chase Travel10 points per dollar on dining purchases through Chase Ultimate Rewards10 points per dollar on Lyft rides (through March 31, 2025)10 points per dollar on Peloton equipment and accessory purchases (through March 2025) of $150 or more, with a maximum of 50,000 points5 points per dollar on flights purchased through Chase Travel3 points per dollar on all other travel (excluding the $300 travel credit) and dining purchases worldwide1 point per dollar on everything else$550
Quantifiable benefits:
Welcome bonus ($1,230 value, according to TPG valuations)Up to $300 travel credit each account anniversary year ($300 value)Up-to-$100 Global Entry or TSA PreCheck application fee credit every four years ($100 value)$5 monthly DoorDash credits and a one-year Doordash Dash Pass subscription, a $156 total value (activate by Dec. 31, 2024)Net first-year value: $1,236
The premium Chase Sapphire Reserve makes this list thanks to the current welcome bonus of 60,000 Ultimate Rewards points plus the $300 in statement credits that’ll automatically be applied to travel purchases each account anniversary year. Note that this calculation does exclude perks like Priority Pass lounge access (including participating restaurants) and the ability to book high-end hotels with added perks through the Luxury Hotels & Resorts program, as both of these are hard to quantify.
Read our full review of the Sapphire Reserve for more details.
Application link: Chase Sapphire Reserve
merican Express Gold CardHere’s what to know about the Amex Gold.
THE POINTS GUYWelcome bonusEarning rate (terms apply)Annual fee60,000 Membership Rewards points after you spend $6,000 on eligible purchases with your new card within the first six months of card membership4 points per dollar at restaurants and at U.S. supermarkets (on up to $25,000 per calendar year, then 1 point per dollar)3 points per dollar on flights purchased directly with the airline or at amextravel.com1 point per dollar on other eligible purchases$250 (see rates and fees)
Quantifiable benefits:
Welcome bonus ($1,200 value, according to TPG valuations)Up to $10 per month in Uber Cash for U.S. rides and Uber Eats orders (up to $120 value annually)*Up to $10 per month in dining credits at participating restaurants (up to $120 value annually)** Enrollment is required for select benefits.
Net first-year value: $1,190
The American Express Gold Card (also available in the popular Rose Gold version) is one of the best cards out there for foodies because of its earning structure and two food-focused perks. Keep in mind that you could potentially be targeted for an even more valuable welcome offer (up to 90,000 points) through the CardMatch Tool, although offers are subject to change at any time.
Read our full review of the Amex Gold for more details.
Application link: American Express Gold Card
Bottom line
Many popular travel credit cards can get you well over $1,000 in value in just the first year of card membership. While we’ve listed the dollar values of perks and benefits where we can, many credit card perks and benefits are more subjective.
If you have a card where you spend a lot each year within its bonus categories, you can easily get more than $1,000 in value from a card just based on spending alone. Conversely, suppose you aren’t taking full advantage of benefits offered by a card (such as lounge access, yearly statement credits or elite status perks). In that case, you could get less value from a specific card because it’s not suited to your needs.
Hopefully, this gives you a starting point to see which cards offer $1,000 or more in value in the first year to those who can use the card’s benefits.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
For rates and fees of The Business Platinum Card® from American Express, click here. For rates and fees of The Platinum Card® from American Express, click here. For rates and fees of the Marriott Bonvoy Brilliant® American Express® Card, click here. For rates and fees of the American Express® Gold Card, click here. For rates and fees of the Hilton Honors American Express Aspire Card, click here. For rates and fees of the Hilton Honors American Express Surpass® Card, click here.
By: Chris Dong
Title: 12 credit cards that can get you $1,000 or more in first-year value
Sourced From: thepointsguy.com/guide/credit-cards-over-1000-dollars-in-value/
Published Date: Thu, 15 Feb 2024 18:00:10 +0000
Title: 12 credit cards that can get you $1,000 or more in first-year value
Sourced From: thepointsguy.com/guide/credit-cards-over-1000-dollars-in-value/
Published Date: Thu, 15 Feb 2024 18:00:10 +0000
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