Author Topic: Credit Card Annual Fee  (Read 2617 times)

Glenstache

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Credit Card Annual Fee
« on: July 23, 2014, 10:08:56 AM »
I received a credit card offer for a black level credit card, whatever that is, and a $495 annual fee. Not a typo. $495 a year for the pleasure of using their card. NO cash back, but apparently it comes with some sort of VIP treatment and the card is made of stainless steel. I was laughing pretty hard as the important bits went to the shredder pile.

4alpacas

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Re: Credit Card Annual Fee
« Reply #1 on: July 23, 2014, 10:16:53 AM »
One of my friends told me that she was considering getting one.  I think it was mostly appearance based.  I hope she didn't.

slugline

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Re: Credit Card Annual Fee
« Reply #2 on: July 23, 2014, 10:20:48 AM »
http://forum.mrmoneymustache.com/antimustachian-wall-of-shame-and-comedy/visa-black-card/msg264295

They hold this out as some sort of "exclusive," but they send so many "invitations" that the level of exclusivity is laughable.

voidmain

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Re: Credit Card Annual Fee
« Reply #3 on: July 23, 2014, 11:00:57 AM »
I have previously had an Amex Platinum, which costs $450/year (but isn't made out of metal or whatever). Its way too much money for most people, but there are many meaningful benefits that can make it worthwhile. They give a $200/yr credit for charges on a chosen airline, which smart people online figured out how to turn into a $200/yr gift card, free lounge access (value depends on how much you fly obviously), free global entry/precheck signup fees ($100). I cancelled mine because I was largely interested in the signup bonus, but for 2 years of owning it ($900), I got $700 worth of free stuff (which I otherwise would've would've spent cash on),  a bunch of other smaller benefits, and of course a lot of points (who knows how to value those, but $1500 is probably a reasonable guess), certainly more than $200 worth of value.

I don't argue that these sort of cards are mostly antimustachian (the concept of them being exclusive is a joke), but there is definitely value there for people who travel enough

« Last Edit: July 23, 2014, 11:03:56 AM by voidmain »

MgoSam

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Re: Credit Card Annual Fee
« Reply #4 on: July 23, 2014, 11:08:26 AM »
I have previously had an Amex Platinum, which costs $450/year (but isn't made out of metal or whatever). Its way too much money for most people, but there are many meaningful benefits that can make it worthwhile. They give a $200/yr credit for charges on a chosen airline, which smart people online figured out how to turn into a $200/yr gift card, free lounge access (value depends on how much you fly obviously), free global entry/precheck signup fees ($100). I cancelled mine because I was largely interested in the signup bonus, but for 2 years of owning it ($900), I got $700 worth of free stuff (which I otherwise would've would've spent cash on),  a bunch of other smaller benefits, and of course a lot of points (who knows how to value those, but $1500 is probably a reasonable guess), certainly more than $200 worth of value.

I don't argue that these sort of cards are mostly antimustachian (the concept of them being exclusive is a joke), but there is definitely value there for people who travel enough

We have a platinum Amex here at the office. Me and my boss fly at least 10 trips between us (20 flights), and getting at least two free check-in bags for each flight makes it more than pay off.

MrsPete

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Re: Credit Card Annual Fee
« Reply #5 on: July 24, 2014, 09:12:06 AM »
I received a credit card offer for a black level credit card, whatever that is, and a $495 annual fee. Not a typo. $495 a year for the pleasure of using their card. NO cash back, but apparently it comes with some sort of VIP treatment and the card is made of stainless steel. I was laughing pretty hard as the important bits went to the shredder pile.
I saw the "inventor" of that card on the business news!  The card name started with an M, but I forget exactly what it was.

He was touting the positives of the card, saying it opens doors, etc., etc., etc.  It isn't even a credit card in the traditional sense; rather, it partners with your existing credit card but strengths it. It includes invitations to parties and events (not free parties, mind you).  He also said its target audience is the Millennial crowd, a group who expects more from a card, and he says that older people "won't get the appeal".  He claims that although the card is new, some 200+ people a day are applying. 

We found it amusing, so we even looked it up online.  The website was ridiculous!  They describe "creating your one-of-a-kind card from stainless steel".  Well, duh.  Every card in my wallet was "created" for me when they stamped my name on it.  So is all the junk mail I toss unopened every day. 

I agreed with one thing:  I did not understand the appeal.  When I mentioned it to my 20-year old, she didn't get it either.