The credit card that costs $695 in fees… but is still incredible value

The American Express Platinum Card is traditionally seen as a premium credit card reserved for the ultra-wealthy.

The stainless steel card, which turned 40 this year, is seen by many as a status symbol.

But while the Platinum Card may have a pricey $695 annual fee, the Platinum Card offers members more than $1,500 in benefits per year, according to the company.

This includes credits for airline tickets, discounts on Uber rides or shopping at Walmart, credits for major streaming services and access to airport lounges around the world.

“With more than 40 premium benefits, the Platinum Card delivers tremendous value, connecting members to what they love across travel, dining, entertainment, retail and wellness, and giving them unparalleled access to unique experiences,” said Howard Grosfield, president of US Consumer Services for American Express.

When it was first introduced in 1984, it was available by invitation only. The company named it after the metal because it was considered ‘little known but very valuable’ at the time.

Now, Americans simply need to have a good or excellent credit score to qualify for the card, and it has won new generations of fans.

“It remains one of our most successful products and has become the ticket for a whole new generation of Millennial and Gen Z customers.”

With the Platinum Card, cardholders can get up to $200 in credits on eligible airlines, as well as $200 in credits on select hotels.

When users add the card to their Uber account, they’ll automatically get $15 in credits each month that can be used for rides or Uber Eats — plus a $20 bonus in December.

Customers can also get up to $20 per month in credits when they use their card to pay for eligible streaming services, including Disney+, ESPN, Hulu and Peacock, according to the company.

If they sign up for a Walmart+ membership, they can also get back $155 per year in statement credits.

And for many Americans, access to airport lounges is a key benefit when considering whether it’s worth paying an annual fee for a credit card.

Travelers with the Platinum Card have access to American Express lounges at more than 1,400 airports in 140 countries – a perk worth more than $500.

They also have access to the ultra-luxury ‘Centurion Lounge’ at airports in cities such as Atlanta, New York, San Francisco and Philadelphia.

American Express also recently introduced a new online waitlist feature for all Centurion Lounges in the US, meaning cardholders don’t have to wait in line to access popular lounges.

Customers had complained about having to pay hundreds of dollars a year for a credit card that promised lounge access, but had trouble getting in.

Many users have spoken out on social media about whether they think the benefits are worth the price of the card each year.

‘Can I live without it? Yes of course. Do I want that? No, I don’t,” said one commenter on Reddit wire.

“The credits for Clear, Uber, airlines and streaming are all things I use anyway. That’s $829 before we even talk about Saks, lounge access, hotel status, points or Amex offers.” they wrote.

Another user noted that it could be “very valuable to have” for those who travel often.

“While many will say that there are cards that offer more rewards or cash back, I have yet to find a card that offers the vast amount of travel-related benefits that the Platinum Card offers,” they wrote in the thread.

However, other users noted that they are having a hard time getting the value of the annual fee out of the card.

“The airline credit is very difficult to use because it is tied to one airline and you can only select that airline once a year,” one user commented.

While they said the monthly Uber credit is “good,” they added, “I usually use it for Uber food, but $15 isn’t much when the prices are this high.”

Another person said they can’t make up for the annual fee with the credits, but “the lounge access and other travel benefits are good enough to make it worth it for my family.”

They added: ‘We have also had excellent customer service experiences.

‘It is a lot easier to justify the card if you have a higher income. We are not rich, but we earn enough that the annual fee is not a problem. Otherwise we wouldn’t be able to justify the cost of the card.’

The $695 annual fee for the card, which increased from $550 in 2021, is NerdWallet.

It comes as a powerful consumer watchdog takes aim at credit card companies, including American Express, Bank of American and JPMorgan Chase, over a major complaint for millions of Americans: the devaluation of rewards points and airline miles.

Since the Covid-19 pandemic, the value of credit card points has steadily declined as inflation has eroded their purchasing power, leaving many cardholders feeling shortchanged.

The Consumer Financial Protection Bureau (CFPB) warned earlier this month that major credit card companies could be breaking the law because of the practice.

It accuses these issuers of luring customers with promises of enticing benefits and rewards but failing to deliver on those promises.

Credit card companies that obscure the terms and conditions for earning or keeping rewards in fine print may be engaging in illegal practices, the report said.