Have Premium Credit Cards Perks Become an Expensive Illusion? A Hard Look at the Real Cost

Premium credit cards are in a “perk” war. Recent policy changes and fee announcements from several major card companies highlight a stark reality: luxury comes at an increasingly steep price.

Chase Sapphire Reserve announces a hike to its annual fee

The Chase Sapphire Reserve®, a longtime favorite among travel and dining enthusiasts, announced a significant fee increase in 2025. Its annual fee is going from $550 to $795, a hefty 77% jump from the $450 fee initially offered when the card was launched in 2016.

To help offset the new fee, Chase is rolling out more perks, including:

• Expanded statement credits: Think Apple TV+, Apple Music, StubHub, Lyft, DoorDash, and Peloton. In total, these credits are worth over $2,000 annually.
• Enhanced travel benefits: A $300 annual travel credit (existing), a new $500 annual high-end hotel credit within Chase's "The Edit^SM" collection, and boosted points on certain travel bookings through Chase.
• Dining exclusives: A $300 dining credit and access to "Sapphire Reserve Exclusive Tables" on OpenTable.
• Elite status upgrades: Additional travel and shopping credits for cardholders who spend $75,000 or more in a year.

AMEX Platinum could be next

The Platinum Card® from American Express currently carries a $695 annual fee. While no official announcement has been made, another substantial fee increase may be on the way, especially in response to Chase's recent move. In a June 2025 press release, Amex said it plans to make "its largest investment ever" in the card, which historically correlates with fee increases and revamped benefits.

The AMEX Platinum benefits are already impressive, including extensive airport lounge access, various statement credits (Uber, Saks Fifth Avenue, digital entertainment), and elite hotel statuses. AMEX will likely expand these offerings to justify a higher card fee and maintain its market position, but it's unclear how high they could go and whether these perks will be worth the costs.

While offer pages for these credit cards expertly highlight the advantages of becoming a cardholder, they often gloss over the most significant hidden cost: the interest charged on any unpaid balance. These "perks" aren't truly free—if you carry a balance, you're essentially paying for them multiple times over through high annual percentage rates (APRs).

Chase Sapphire Reserve's advertised APRs ranged from 20.24% to 28.74% at the time of publication, which varies based on the market and the prime rate. Even for borrowers with excellent credit who are more likely to qualify for rates on the lower end of this range, a 20%+ APR is still a substantial burden.

If you're spending to meet perk thresholds, and you don’t pay off your balance in full each month, you’re paying both the annual fee and significant interest on every dollar spent. The "value" of the perks quickly diminishes when compounded by interest charges.

Perks are great—if you can use them

Credit card perks can be a good way to save money and enjoy additional benefits, but they require responsible use. What’s more, the reality of utilizing these benefits is often more complex than it appears.

A report by the Consumer Financial Protection Bureau (CFPB) found that for many borrowers, the benefits of rewards programs do not exceed the costs of credit cards. And consumers who carry revolving balances often pay far more in interest and fees than they receive in rewards.

• Many credits come with stipulations: They may be distributed biannually or monthly and with usage restrictions, making it hard to maximize their value without intentional effort and specific spending habits.
• High spending thresholds: Accessing top perks often requires meeting spending minimums within a short welcome period and then consistently every year thereafter. (Chase’s elevated perks tier requires $75,000 in annual spending.) For most consumers, this is a significant, and potentially irresponsible, spending target.
• Perks can change; annual fees may not: Continued value isn’t guaranteed once you sign up for the card. For example, Capital One quietly eliminated some of the reward programs for which the card was known to avoid increasing its annual fee, including removing cardholders' access to luxe travel credits and benefits.

It's not just annual fees on the rise. Issuers are also tacking on swipe fees—the percentage a merchant or small business owner pays to accept credit as payment—which adds to the financial burden for cardholders. Swipe fees average 2.35% per swipe and are climbing. They reached $187.2 billion in 2024, a 70% increase since the pandemic.

While paying by card is convenient, these fees are often passed on to consumers. Experts estimate that these fees drive up consumer prices for everyday goods and services by nearly $1,200 a year for the average family.

This financial burden, along with high APRs on consumer credit, can create a cycle of debt that makes "free" perks feel increasingly expensive. As a cardholder, it’s important to have a solid budget and practice responsible borrowing. Focusing on earning points through spending, particularly when high APRs are involved, might unintentionally encourage habits that lead to financial strain.

For those willing to look beyond hefty annual fees and the hidden cost of high APRs, there's a more transparent and cost-effective way to access funds when you need them: personal loans.

Here's why personal loans offer a superior alternative, especially for larger, planned expenses:

• Freedom and flexibility: A personal loan provides you with a lump sum of cash that you can use to manage multiple, sometimes overlapping, financial needs. This may include high-interest debt, unexpected expenses, everyday living costs, family emergencies, and more. 
• No revolving debt cycle: With a personal loan, you're not tied to a revolving line of credit that can easily lead to carrying a balance and accruing substantial interest. 
• Fixed payments and predictable terms: Personal loans offer a lump sum of money with a fixed interest rate and a set repayment schedule. You know exactly how much you'll owe each month and how long it'll take to repay, allowing for better financial planning and budgeting.
• Potential for lower APRs: Personal loan APRs are often significantly lower than credit card APRs, especially for borrowers with good credit. 

It's time to shift the focus from perks and fees to financial tools that truly empower your financial well-being. A personal loan offers a clear and straightforward way to access funds because it allows you to make your own choices with your money, on your own terms.

BHG offers fixed-rate personal loans tailored to your needs, with amounts up to $250,000¹ and flexible terms of up to 10 years.^1,2 Plus, you’ll enjoy dedicated, U.S.-based concierge service that works around your schedule—because your time is valuable. Ready to see what’s possible? Get your personalized loan offer in just seconds.