Featured Review: Credit Cards worth Paying Annual Fees without Spending
Updated January 30, 2024.
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 Surpass Card ($150)
Amex Hilton Honors Aspire Card ($550)
Chase Marriott Bonvoy Boundless Visa ($95)
Amex Marriott Bonvoy Brilliant Card ($650)
Chase World of Hyatt Visa ($95)
Chase IHG Rewards Club Premier MasterCard ($99)
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 Surpass Card ($150)
- 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 could be worth much more than the annual fee. You also receive $200 annual Hilton credits in form of $50 quarterly credits. In addition, after you spend $15K each year, you will earn a free 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 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 night.
Amex Hilton Honors Aspire Card ($550)
- Benefits in a nutshell: With the $550 annual fee, this card offers five 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 night at most Hilton worldwide portfolio hotels or resorts, and one or two additional free nights after you spend $30K or $60K a year, (3) $400 annual statement credits for purchases made at any Hilton portfolio resort in form of $200 semi-annual credits, (4) $200 annual flight credits in form of $50 quarterly credits, and (5) $189 annual CLEAR credits for a CLEAR plus membership.
- Why not putting spending on the card? The same reason as Hilton Surpass (see above). However, spending on Hilton earns you 2 additional points, i.e., 14x points in total, which translates to 5.6% rewards; and spending $30K or $60K a year to earn one or two additional free nights might be something worth considering.
- In the drawer? Yes unless you are working on earning additional free nights or spending at Hilton portfolio hotels.
Chase Marriott Bonvoy Boundless Visa ($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 on Marriott purchases), 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 for general spending. Marriott purchases are value at 4.5% rewards which are not too shabby.
- In the drawer? Yes, unless spending at Marriott portfolio hotels.
Amex Marriott Bonvoy Brilliant Card ($650)
- Benefits in a nutshell: The annual fee is $350 after considering the $300 annual dining credits. With that, you receive the four major Marriott perks: (1) You receive an annual free night at an Marriott portfolio hotel at a redemption level of up to 85,000 points. Capped at 85,000 points, the free night is generally good for upscale hotels but usually not the most luxury ones; however, in some parts of the world, you may still find luxury hotels in this range. (2) You receive Marriott Platinum status for free, which could be lucrative in offering free lounge access/breakfast and potential suite upgrades. (3) You also receive 15 elite qualifying night credits each year toward elite status, which can be valuable to Marriott frequent guests. (4) When you spend $60K a year, you will receive an Earned Choice Award (ECA) benefit: (a) a free night with a redemption level of 85,000 points, (b) five suite night awards, or (c) $750 mattress and box spring discount from Marriott retail brands.
- Why not putting spending on the card? The same reason as Chase Marriott Bonvoy Boundless discussed above. How about spending towards to earn an ECA? Spending $60K essentially means a loss of $300 compared to the 2% cashback - it works for some consumers but not for others.
- In the drawer? Yes, unless spending at Marriott portfolio hotels, or/and towards the $60K for the ECA.
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 the best 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 ($99)
- 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 Marriott Platinum, Hyatt Globalist, Hilton Diamond) 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.
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