6 Credit Card Perks That Make Pricey Annual Fees Worth It

You could score fantastic credit card perks by paying a higher annual fee.

Premium rewards credit cards are popular because, in addition to giving cardholders the opportunity to earn rewards, these cards are typically loaded with attractive perks.

But most higher-level rewards credit cards charge high annual fees. You may try to avoid expensive yearly fees because the cost feels daunting.

But for the right person, some benefits are worth paying a high annual fee. If you're considering getting a credit card with a costly yearly fee, you may find the following benefits valuable -- and worth the expense.

1. Dining and takeout credits

If you dine out a lot or frequently order takeout, having one of the best dining and restaurants credit cards in your wallet can be beneficial. Some of these credit cards include monthly or yearly dining credits. This perk could make your next takeout order and date night out cheaper.

2. Hotel credits

Some travel rewards credit cards include annual hotel credits, which could help you stretch your vacation budget. For travelers who frequently book hotel stays, it's an attractive perk. Keep in mind that you may need to use the card issuer's booking portal or may need to book with certain hotel brands to use these credits.

3. Entertainment credits

Some credit cards include entertainment credits as a perk. If you value entertainment and already pay for streaming services, this could be a big win for your wallet.

Many households subscribe to several streaming services, so streaming services credit card credits could help you keep more money in your pocket.

4. Generous sign-up bonus offers

Many credit cards with higher annual fees have attractive sign-up bonus offers available to eligible new cardholders. If you meet the required minimum spend, a sign-up bonus can be an excellent way to earn many points or miles quickly. This perk can make a pricey annual fee worth the cost -- especially during the first year of card ownership.

5. Travel credits

Some rewards credit cards come with annual travel credits. These credits are beneficial for frequent travelers who value flexibility. Usually, you can use these credits for a variety of travel expenses, such as hotel stays, airline ticket costs, and transit expenses.

If you have a premium credit card that includes yearly travel credits, paying a higher annual fee may not feel so expensive anymore.

Here's an example: If your credit card's annual fee is $550 and includes $300 in annual travel credits that you quickly put to use on expenses you planned to make anyway, it will feel as if you're only paying a $250 annual fee.

6. Checked baggage allowance credits

If you don't pack light when you travel, you may need to pay a fee to check your bag and airline baggage fees can add up quickly. You can save money without changing your packing style by using a premium airline credit card or travel card that includes airline baggage credits.

How to choose the right credit card for you

Before getting a card with an annual fee, you should consider your personal finance situation and figure out what card fits your credit situation, spending habits, and budget.

As you look at potential card options, don't forget to research the benefits offered. Some credit card perks may be well worth the high annual fee.

However, not all card benefits are valuable to everyone, so consider what card features are best for your lifestyle. If you're in the market for a new credit card, review our list of the best credit cards to learn more.