Featured Review: Credit Cards worth Paying Annual Fees without Spending

Featured Review: Credit Cards worth Paying Annual Fees without Spending (NOT updated)

Updated August 3, 2018. This is an outdated review - please see our updated review here.

In this review, we will cover some credit cards that we think worth paying annual fees without ever making a purchase with them. For most of them, you don't even need to carry them in your wallet but rather putting them in drawers collecting dust. The idea is that even though these cards may not be great in earning rewards compared to our favorites, they offer special perks that value much more than the annual fees you are paying.

Amex Hilton Honors Ascend ($95)

Benefits in a nutshell: As long as you have the card, you will have Hilton Gold status, which is the second best hotel mid-tier elite status and is worth much more than the annual fee. In addition, after you spend $15K each year, you will earn a free weekend night at any Hilton worldwide portfolio hotels, which can be redeemed at luxury properties such as Conrad Maldives, Conrad Koh Samui, Conrad Bora Bora Nui, Conrad Tokyo, Hilton Seychelles Labriz, Hilton Seychelles Northolme, Waldorf Astoria Beverly Hills, etc.
Why not putting spending on the card? It returns three Hilton points for general purchases (6x on dining | groceries | gas station, and 12x on Hilton), and Hilton points are generally worth much less than one cent a piece (our current valuation is 0.4 so 3x on general spending doesn't translate to great rewards). However, spending $15K a year to earn the free weekend night will be a wise thing to do, especially when you are spending on Hilton.
In the drawer? Yes unless you are working on earning the annual free weekend night.

Amex Hilton Honors Aspire ($450)

Benefits in a nutshell: The effective annual fee becomes $200 after considering the annual $250 airline credit. With that, this card offers four major perks: (1) complimentary Hilton Diamond status which has all the Hilton Gold's benefits plus more such as guaranteed lounge access at Conrad, Hilton, DoubleTree, Curio Collection, and Tapestry Collection hotels and resorts, (2) an annual free weekend night at most Hilton worldwide portfolio hotels or resorts, (3) annual $250 statement credits for purchases made at any Hilton portfolio resort, and (4) Priority Pass Select membership with unlimited access to 50+ domestic lounges and 1,000+ international lounges for you plus two guests. Note that free weekend night and Diamond status will be linked to your Hilton Honors account and you will receive a separate Priority Pass Select membership card for airport lounge access.
Why not putting spending on the card? The same reason as Hilton Ascend (see above).
In the drawer? Yes unless you are spending on Hilton.

Bank of America Alaska Airlines Visa ($75)

Benefits in a nutshell: You receive an annual economy class companion certificate for you to take a companion at only $99 on any Alaska flight including those to/from Hawaii and Alaska. This companion certificate is the best among those offered by credit cards since most others are limited within contiguous U.S. Obviously, when used wisely, this alone can save you hundreds of dollars.
Why not putting spending on the card? It returns one Alaska mile per dollar spent for general purchases (and 3x on Alaska), and even though these miles are very valuable we think you can do better with Amex SPG whose points can be transferred into 30 partner programs including Alaska at 1:1.25 ratio when transferred in bulks of 20K.
In the drawer? Yes.

Chase Marriott Rewards Premier Plus Visa ($95) | Amex Starwood Preferred Guest Card ($95)

Benefits in a nutshell: You receive an annual free night at an Marriott portfolio hotel at a redemption level of up to 35,000 points. Capped at 35,000 points, the free night is mostly good for mid-range hotels; however, in some parts of the world, you can still find very nice hotels in this range. In addition, you receive 15 elite qualifying night credits each year toward elite status, which can be valuable to Marriott frequent guests.
Why not putting spending on the card? It returns 2 Marriott points per dollar spent (and 6x Marriott), and Marriott points are generally considered less than one cent a piece (our current valuation is 0.75). Based on our value, you would be better off using a 2% cashback card such as Citi Double Cash.
In the drawer? Yes, unless spending at Marriott portfolio hotels.

Chase World of Hyatt Visa ($95)

Benefits in a nutshell: You receive an annual free night at any Category 1-4 Hyatt brand hotels worldwide, and a second annual free night if you spend at least $15,000 in the previous membership year. Currently Hyatt has seven categories and this certificate is mostly good toward mid-range hotels; however, just like with Marriott, you may still find very nice hotels in these categories. In addition, you will receive 5 elite qualifying night credits toward your next tier status as long as you have the card, and 2 additional night credits for each $5,000 you spend on the card. You also receive complimentary Hyatt Discoverist, their entry-level status, as long as you have the card; however, the benefits are limited.
Why not putting spending on the card? It returns one Hyatt point per dollar spent generally (and 2x dining & airlines & local transportation & fitness, and 4x Hyatt purchases), and even though Hyatt points are considered second to SPG points in value among hotel currencies (our current valuation is 1.2 cent per point), we will recommend using Chase Sapphire Reserve instead since its bonus rewards cover more categories and its Ultimate Rewards points can be transferred to 11 partner programs including Hyatt. However, it actually makes a lot of sense to put $15K on the card to receive the second annual free night, as well as 6 additional night credits.
In the drawer? Yes, unless spending towards the second annual free night and/or additional night credits.

Chase IHG Rewards Club Premier MasterCard ($89)

Benefits in a nutshell: You receive an annual free night at an IHG hotel with a redemption level up to 40,000 points. IHG's current top-tier hotels require 70,000 points per night, so the annual free nights are mostly good for mid-range hotels. The annual free nights offered by the old IHG MasterCard used to be un-capped, meaning you might redeem them at top-tier IHG hotels. Thus the 40K cap is obviously a pretty huge devaluation; however, the annual free night is still worth much more than the $89 annual fee, because based on our value, 40K IHG points are worth ~$160 and the value of the free night certificate will be a little less due to the expiration policy. In addition, you are also granted IHG's top tier elite status Platinum as long as you have the card; this status doesn't have great published benefits (so not as great as SPG Platinum, Hyatt Globalist, Hilton Diamond, or Marriott Platinum) but it some parts of the world (such as Asia) it can still be very valuable.
Why not putting spending on the card? It returns one IHG Rewards point per dollar spent for general purchases (and 2x on gas, groceries and dining, and 10x IHG hotel purchases), and these points are generally considered less than one cent a piece (our current valuation is 0.4).
In the drawer? Yes.

US Bank Radisson Rewards Premier Visa ($75)

Benefits in a nutshell: You will receive 40,000 Radissobn points every year you renew your card. Based on our current valuation at 0.25 cent per point, these bonus points more offset the annual fee. As long as you have the card, you will have Radisson Rewards Gold status, which is generally less valuable than Hilton Gold but may still be of good value. In addition, you will receive an annual free night for each $10,000 you spend in the previous year, up to three free nights per year. Their top-tier hotels such as The May Fair in London, Radisson Blu Edwardian Hampshire Hotel in London, Radisson Collection Hotel Royal Mile Edinburgh, Radisson Blu Hotel Edinburgh, Radisson Blu Hotel Champs Elysees Paris, Radisson Blu 1835 Hotel & Thalasso in Cannes, Radisson Blu Hotel Lucerne, Radisson Collection Royal Hotel Copenhagen, Radisson Collection Strand Hotel Stockholm, Radisson Blu Scandinavia Hotel Oslo, Radisson Blu 1919 Hotel Reykjavik, Radisson Royal Hotel Moscow, Radisson Blu Martinique on Broadway in New York, Radisson Blu Aqua Chicago, Radisson Blu Plaza Sydney, Radisson Blu Resort & Spa Ajaccio Bay, Radisson Blu Beach Resort Milatos Crete, Radisson Blu Resort Gran Canaria, etc., require 70,000 points per night or easily retails for $300-$600.
Why not putting spending on the card? It returns 5x for general purchases and 10x for Radisson portfolio hotels, and that translates to 1.25% and 2.5% cashback equivalent earning based on our current valuation, which is not that attractive.
In the drawer? Yes, unless you are working on earning the annual free night(s).