Every year, it’s important to evaluate the contents of your wallet and decide which cards are worth keeping. This decision should ideally be made before the next annual fee is due. When evaluating your cards, you should consider factors such as the annual fee cost and the value you’re getting out of the card. It’s crucial to remember that even if a card has a lower annual fee, it may not necessarily be worth keeping. In this article, we will specifically look at the IHG One Rewards Premier Credit Card and determine whether it is worth a place in your wallet.
One of the first things to consider when evaluating a credit card is the welcome offer. The IHG Premier card offers new applicants the opportunity to earn 165,000 bonus points after spending $3,000 on qualifying purchases within the first three months of account opening. According to The Points Guy, this bonus is valued at $825. This welcome offer can be redeemed for luxury stays at hotels like the InterContinental Maldives Maamunagau Resort or budget-friendly properties like the Holiday Inn Agra, where you can visit the Taj Mahal. The number of points required for each night’s stay will be displayed when searching for hotels.
Another valuable benefit of the IHG Premier card is the annual free night award. On each account anniversary, cardholders receive a free night award worth up to 40,000 points. This award can be used for bookings with IHG One Rewards. If you wish to redeem it for a hotel that costs more than 40,000 points, you can also purchase additional points. The value of this benefit alone could justify the card’s annual fee of $99.
Additionally, cardholders receive $50 in United TravelBank credit. In January and July, they receive $25 credits to their United TravelBank balance. These funds can be used to purchase flights operated by United and United Express, reducing out-of-pocket costs for cash fares. However, there are limitations to using these funds. They cannot be used to pay taxes and fees on award travel, combined with vouchers from canceled flights, or used for in-flight purchases.
One of the significant perks of the IHG Premier card is the automatic Platinum Elite status it offers. This is the second-highest tier in IHG One Rewards. Benefits of this status include complimentary upgrades at check-in (based on availability), guaranteed room availability, a welcome amenity of snacks or drinks, early check-in, use of a priority check-in desk, and earning 16 points per dollar on paid stays with IHG. The value of Platinum Elite status is estimated to be $1,290 per year.
Cardholders also have access to the “fourth night free” benefit when redeeming points for award stays with IHG. This benefit allows cardholders to get the fourth night free when using points to cover a stay of four nights or more. The value of this benefit will depend on how frequently it is used and the price of the hotels where it is used.
In terms of earning points, the IHG Premier card offers 16 points per dollar on paid stays at IHG hotels, thanks to the Platinum Elite status. Additionally, cardholders earn 10 points per dollar at IHG when paying with the Premier card. They also earn 5 points per dollar on travel, hotels, gas stations, and dining (including takeout and eligible delivery services), and 3 points per dollar on other purchases. Based on valuations, this translates to a 5%, 2.5%, and 1.5% return on spending, respectively.
Other notable benefits of the IHG Premier card include reimbursement (once every four years) for the application fee to Global Entry, TSA PreCheck, or Nexus. Cardholders also receive a 20% discount on points purchases, although this cannot be combined with other sales on IHG points. Furthermore, cardholders earn a $100 statement credit and 10,000 bonus points after spending $20,000 on purchases in a calendar year. The card also offers valuable travel and shopping protections, including trip cancellation/interruption insurance, purchase protection, rental car insurance, lost luggage reimbursement, and extended warranty coverage.
In conclusion, if you can utilize the perks offered by the IHG One Rewards Premier Credit Card for average value or better, it should be easy to justify the annual fee and keep it in your wallet. However, if you rarely stay at IHG hotels and do not take advantage of the cardholder benefits, the $99 annual fee may not be worth it for you. It’s important to carefully evaluate the benefits and costs of the card based on your own travel and spending habits before making a decision.