Featured Review: Comparing High-end Credit Cards (before October 2014)
Updated October 27, 2014. Please see our updated review here.
In this featured review, we will compare some of most popular high-end cards in the market, which carry annual fees between $400 and $600. If you want to know about the super exclusive "black card", read our Amex Centurion review. All the following cards come with dazzlingly long lists of benefits such as airport lounge access, luxury hotel privileges, 24/7 concierge service, global assistance, by invitation only events, and some offer airline companion pass, elite hotel status, cruise privileges, etc. However, here we want to get down to the core perks of each product to make the comparison simple for most readers.
The bottom line is that each of these products targets a certain group of consumers and can be of great value even with the seemingly hefty annual fees. Finally, let's summarize our comparison based on the four most sought out perks:
In this featured review, we will compare some of most popular high-end cards in the market, which carry annual fees between $400 and $600. If you want to know about the super exclusive "black card", read our Amex Centurion review. All the following cards come with dazzlingly long lists of benefits such as airport lounge access, luxury hotel privileges, 24/7 concierge service, global assistance, by invitation only events, and some offer airline companion pass, elite hotel status, cruise privileges, etc. However, here we want to get down to the core perks of each product to make the comparison simple for most readers.
- Amex Platinum Card: annual fee is $450 and $175 for up to three additional Platinum Card users. The card used to dominate this niche market, and over the years we have seen the benefits diluted mostly due to changes in the airline industry which were out of Amex's control. Even after the 2014 changes (American Airlines and US Airways left the lounge program in March 2014, and Delta stopped allowing free access for guests starting May 2014), it is still considered our benchmark. Since the card comes with the annual $200 airline incidental credit, the effective annual fee is considered to be $250. For that money, Amex offers two major perks: Fine Hotels & Resorts (FHR) which is arguably the best luxury hotel program provided by a credit card, and access to 100+ domestic lounges (Delta, Alaska, Airspace, Centurion, Priority Pass Select) and 550+ international lounges (Priority Pass Select), mostly for yourself only. Note that for an extra $175/year, you can have up to three additional Platinum Card users and each will have airport lounge access and FHR benefits. If you spend more than $100K a year, try to get the Goldman Sachs version which, in addition to all standard Platinum features, offers a 40K Membership Rewards points booster.
- Amex Delta Reserve: annual fee is $450. Its three major perks are 1) access to 50+ Delta Sky Clubs for the primary cardholder only starting May 2014, 2) an annual domestic coach/first class companion pass, and 3) a 30K Delta Medallion Qualifying Miles (MQMs) bonus after $60K spending. It makes sense when you make use of the last two perks; otherwise you would be better off with Amex Platinum.
- Chase United MP Club: annual fee is $395. The three major perks are 1) the full United Club membership allowing access to 50+ domestic lounges and 200+ international lounges for the primary cardholder plus two guests, 2) the highest earning rate for United miles at 1.5 mile per dollar spent, and 3) primary rental car insurance.
- J.P. Morgan Ritz-Carlton: annual fee is $395 but with the annual $300 airline incidental credit, it is considered to be $95. The Ritz-Carlton Card has four major perks: 1) three club level upgrades at Ritz-Carlton each year, 2) complimentary Ritz-Carlton & Marriott Gold status for the 1st year and after $10K annual spending thereafter, 3) primary rental car insurance, and 4) access to 25 domestic lounges and 330+ international lounges for you plus one guest through Lounge Club. It has been reported that authorized users might also get Lounge Club membership through Concierge.
- J.P. Morgan Palladium: annual fee is $595 and $99 for each authorized user, but this card is only available to J.P. Morgan Private Bank or Chase Private Client customers. Its exclusivity and premium image makes it harder for us to compare with other cards with similar annual fees. However, we still list it here just for the sake of comparison. The major perks are 1) full United Club membership allowing access to 50+ domestic lounges and 200+ international lounges for the primary cardholder plus two guests, 2) Lounge Club membership allowing access to 25 domestic lounges and 330+ international lounges for you plus one guest (an authorized user also receives Lounge Club membership), 3) Palladium Hotels program which is similar to Amex FHR but has much smaller footprints, 4) primary rental car insurance, and 5) 2x points on travel an annual 35K points booster after you spend $100K - 1.35 point per dollar spent is the highest earning rate for Ultimate Rewards points. The last one makes Palladium a great card to charge daily if your annual spending exceeds $100K.
- Citi Executive/AAdvantage WEMC: annual fee is $450. The two major perks are the full Admirals Club membership allowing access to 50+ domestic lounges (American, US, select Alaska) and 30+ international lounges (Qantas etc.) for the primary cardholder plus two guests, and an annual 10K Elite Qualifying Miles bonus after $40K spending.
- Citi Prestige: annual fee is $450 and $50 for each authorized user but with the annual $250 airline credit, it is considered to be $200. It offers three major perks: 1) access to 40 American Admirals Clubs for the primary cardholder plus two guests and 20+ domestic lounges (including Alaska) and 550+ international lounges through Priority Pass Select for you (primary cardholder or authorized user) plus two guests; 2) hotel privileges including 4th night free at any hotel at your choice through International Complimentary Night Hotels & Resorts (ICNHR) program; 3) a 3-2-1 ThankYou earning structure with a potential 15%-25% annual relationship bonus and newly added flexibility. The late 2014 change of Citi Prestige is considered as devaluation for most consumers; however, when compared to other high-end cards, it still shines in both lounge access and points earning.
- Diners Club Card Elite: annual fee is $300 and $150 for each additional card. Its three major perks are 1) the unique 3-1 Club Rewards earning structure (unlimited 3x on groceries, gas and drugstores), 2) access to 18 domestic lounges and over 500 international lounges for the primary and additional card members through Diners Club's airport lounge program, and 3) primary rental car insurance.
- Visa Black Card by Barclays: annual fee is $495 and $195 for each authorized user. It offers three major perks: 1) Lounge Club membership with unlimited access to 350 airport lounges worldwide for you plus two guests, 2) Black Card VIP Hotel & Travel program through Ensemble Hotel and Resort Collection, Mandarin Oriental, and Villas of Destination, which gives you booking benefits at over 3,000 luxury hotels and villas worldwide, and 3) 2% cash equivalent travel rewards for all expenses.
The bottom line is that each of these products targets a certain group of consumers and can be of great value even with the seemingly hefty annual fees. Finally, let's summarize our comparison based on the four most sought out perks:
- Airport Lounge Access: while they all have some coverage of airport lounges when it comes to international travel, for domestic airport lounge access in U.S. which is harder to obtain through premium cabin travel or elite status, a frequent flyer of a particular airline has very limited choice. If you are a Delta flyer, you can't beat the value and perks of Amex Platinum. If you need Delta MQMs in addition to Sky Clubs, Amex Delta Reserve is worth checking out. For American and Alaska flyers, Citi Prestige will be the best choice. If you need US Airways Club access in addition to Admirals Club or American EQMs, Executive/AA will be your sole option. For United flyers, United MP Club Card is a solid option while JPM Palladium is probably the card you will get if you qualify due to its exclusivity and enhanced features.
- Luxury Hotel Privileges: All cards come with some luxury hotel benefits, but you have to look into details to decide which suit your need. If you frequent luxury hotels, Amex Platinum has long been considered the best bet due to FHR's wide coverage of over 750 luxury hotels and resorts worldwide, consistent benefits, and various promotions. Visa Black Card VIP program, via Ensemble Hotel and Resort Collection, Mandarin Oriental, and Villas of Destinations, is a great alternative to Amex Platinum's offering. Palladium's hotel collection is similar to these two programs in benefits but only covers a little more than 100 hotels. If you frequent Ritz-Carlton and Marriott, you will certainly like what JPM Ritz-Carlton Card offers. Finally, you may still get some good value out of Visa Signature Luxury Hotel Collection (via United MP Club, JPM Palladium, or JPM Ritz-Carlton), World Elite Luxury Hotels & Resorts (via Executive/AA, Citi Prestige, or Diners Club Elite), and Citi Prestige ICNHR's 4th night free.
- Rewards: Citi Prestige's 3-2-1 earning structure with great flexibility in redemption (1.6 cents per point when redeeming for American/US Airways flights or transfer to 10 partners including Singapore, Cathay Pacific, Malaysia) still make it the benchmark among the high-end cards when it comes to rewards. Diners Club Elite offers 3 points per dollar spent on groceries, gas, and drugstores and Club Rewards points can be transferred to 20+ partners programs including Alaska, Southwest, Delta, British, Air Canada, Singapore, and Korean Air. United MP Club Card returns 1.5 miles per dollar spent and is extremely attractive when you are collecting United miles. When you spend at least $60K a year, Delta Reserve returns 1.5 miles per dollar spent but Delta miles are generally not as valuable as many other airline miles. When you spend over $100K a year, Goldman Sachs version of Amex Platinum returns 1.4 points per dollar spent and Membership Rewards points can be transferred to 20+ partner programs including Delta, British, Air Canada, ANA, Singapore, etc. Also with an annual spending over $100K, JPM Palladium returns 1.35 points per dollar spent and Ultimate Rewards points can be transferred to 11 partners including United, Singapore, British, Korean, Southwest, and Hyatt. Visa Black Card returns fixed value 2% cash equivalent travel rewards for all purchases.
- Reach Elite Status Faster: while several cards come with some elite like perks such as priority boarding and waived baggage fees, only two cards offer a way to reach the next level of elite status faster through spending. Delta Reserve's 30K MQMs bonus after $60K spending could be huge to a Delta flyer. Citi Executive/AA's 10K EQMs bonus after $40K may seem not much, but American EQMs are extremely hard to come by thus it may still make sense to some.