What excellent credit gets you
If your credit score is 750 or above, you have access to cards that people with fair or good credit cannot get. These cards offer rewards that actually pay you back — not 1% on everything, but 2% to 5% on specific categories, plus sign-up bonuses worth $200 to $500. They also come with perks like airport lounge access, travel credits, and concierge services. The catch is that these cards cost money: annual fees run from $95 to $550, and they only make sense if you spend enough to earn more in rewards than you pay in fees.
Excellent credit also means you will see the lowest interest rates available. If you carry a balance (which you should avoid, but life happens), you might see a purchase APR between 12% and 18%, compared to 20% to 29% for people with fair credit. You also have the best chance of getting a credit limit high enough to keep your utilization low, which protects your score.
Key Takeaways
- Excellent credit opens access to cards with rewards of 2% to 5% per dollar spent, plus sign-up bonuses of $200 to $500, but most charge annual fees of $95 to $550.
- The math only works if your annual spending in bonus categories exceeds the annual fee — a $200 annual fee requires at least $4,000 in spending at 5% rewards.
- Premium cards often include travel protections, purchase protection, and extended warranties that protect you against fraud and damage.
- Your credit score will dip slightly when you open a new card, but the impact is temporary and worth it if you plan to keep the card for at least a year.
Rewards cards that pay back the most
The highest-earning cards fall into two groups: those that reward you across multiple categories, and those that specialize in one thing you spend heavily on.
Multi-category cards like the Chase Sapphire Preferred and American Express Gold Card offer 3% to 4% on dining, travel, and groceries, with 1% on everything else. Both charge $95 annually. The Sapphire Preferred also lets you transfer points to airline and hotel partners, which can be worth more than the cash value. The Gold Card includes a $120 annual dining credit, which cuts the real cost to $0 if you eat out regularly.
Specialized cards work better if you have a clear spending pattern. The American Express Blue Business Plus gives 2% cash back on internet, cable, and phone bills, plus 1% on everything else, with no annual fee. The Citi Double Cash gives 2% on all purchases with no annual fee and no category restrictions — it is the simplest high-earning card if you do not want to track categories.
Travel cards like the Chase Sapphire Reserve charge $550 annually but include a $300 annual travel credit, a $100 Global Entry credit, and 3x points on travel and dining. The math works if you travel at least twice a year and use the credits. For people who fly frequently on one airline, co-branded cards like the United Explorer Card or American Airlines AAdvantage Platinum offer checked bag waivers and priority boarding that save money on every trip.
How to know if an annual fee card is worth it
The decision is straightforward math. Add up what you spend annually in the card's bonus categories. Multiply that by the rewards rate. Subtract the annual fee. If the result is positive, the card pays for itself.
Example: You spend $3,000 a year on groceries, $2,000 on dining, and $1,500 on gas. A card offering 3% on groceries and dining and 2% on gas would earn you $90 plus $60 plus $30 = $180. If the annual fee is $95, your net benefit is $85. If the fee is $150, you lose $35 and should skip it.
Do not count categories you do not actually use. If a card offers 5% on streaming services but you spend $20 a month there, that is only $120 a year — not enough to justify a $95 fee on its own. Count only the spending you know you will do.
Also factor in sign-up bonuses. A card that offers 50,000 points worth $500 cash value, plus a $95 annual fee, breaks even in year one if you earn just $595 in regular rewards. That is much easier to hit than the annual fee alone would suggest.
Travel and purchase protections that come with premium cards
Beyond rewards, premium cards include insurance and protections that can save you money when things go wrong. Trip cancellation insurance covers your prepaid travel costs if you have to cancel for a covered reason — illness, injury, or death of a family member. Trip delay insurance reimburses you for meals and lodging if your flight is delayed more than 12 hours. These protections are worth $500 to $2,000 per trip and are not available on basic cards.
Purchase protection covers items you buy with the card if they are damaged, stolen, or lost within 90 to 120 days. Extended warranty coverage extends the manufacturer's warranty by one to two years on may be able to access items. Rental car damage waiver covers damage to a rental car if you paid with the card, which can save you $1,000 or more on a single claim.
Concierge services on premium cards will book restaurants, arrange travel, and handle customer service calls on your behalf. This is most useful if you travel frequently or have complex travel plans. The service is included in your annual fee and is available 24/7.
How new cards affect your credit score
Opening a new card will lower your score by 5 to 10 points in the short term. This happens because the card issuer runs a hard inquiry on your credit report, and because your average account age drops when a new account is added. Both effects fade over time.
The hard inquiry disappears from your report after 12 months and stops affecting your score after about six months. Your average account age recovers as the new card ages. After one year, the score impact is usually gone entirely.
The bigger risk is your credit utilization — the percentage of your total credit limit that you are using. If you open a new card and spend heavily on it, your utilization goes up and your score drops. If you open a new card and do not use it, your utilization goes down and your score rises. The best strategy is to open the card, use it for the sign-up bonus, then use it regularly but keep your total utilization below 30% across all cards.
Cards that work best if you carry a balance
You should not carry a balance — the interest you pay will almost always exceed the rewards you earn. But if you do, excellent credit means you can find cards with lower APRs and longer 0% promotional periods.
Some cards offer 0% APR on purchases for 12 to 21 months, with no interest charges during that time. The Citi Simplicity Card and Chase Slate Edge both offer this. After the promotional period ends, the APR jumps to the standard rate, which for excellent credit is usually 15% to 18%.
Balance transfer cards offer 0% APR on balances you transfer from other cards, usually for 6 to 21 months. These cards charge a transfer fee of 3% to 5% of the amount transferred, but if you can pay off the balance during the 0% period, the fee is worth it. The American Express EveryDay Preferred and Chase Slate Edge both offer this option.
Comparing cards side by side
| Card | Annual Fee | Main Rewards | Best For |
|---|---|---|---|
| Chase Sapphire Preferred | $95 | 3x on dining and travel, 2x on groceries | People who travel and eat out regularly |
| American Express Gold Card | $95 (minus $120 dining credit) | 4x on dining and airfare, 3x on groceries | People who dine out frequently |
| Citi Double Cash | $0 | 2% on all purchases | People who want simplicity with no annual fee |
| Chase Sapphire Reserve | $550 (minus $300 travel credit) | 3x on travel and dining, 1x on everything else | Frequent travelers who use the credits |
| American Express Blue Business Plus | $0 | 2% on internet, cable, phone; 1% on everything else | Self-employed people and small business owners |
Frequently Asked Questions
Do I need excellent credit to get these cards?
Most premium cards require a credit score of 740 or higher, though some issuers are stricter. A score of 750 or above gives you the best approval odds and the highest credit limits. If your score is below 740, you may still be approved, but you might not get the best terms.
What happens if I do not meet the sign-up bonus spending requirement?
You straightforward do not earn the bonus. The card is still yours to use, and you will earn regular rewards on your spending. You will also still owe the annual fee. If the annual fee is not worth it without the bonus, you can close the card before the fee posts again, usually within 30 days of the anniversary date.
Can I use multiple premium cards at once?
Yes. Many people with excellent credit hold three to five premium cards, each optimized for a different spending category. The key is making sure your total annual fees do not exceed your total rewards. Track your spending across all cards to make sure you are hitting the bonus categories on each one.
How often can I open new cards without hurting my credit?
You can open one card every three to six months without significant damage to your score. Opening more than one card in a short period can raise red flags with issuers and lower your score more sharply. Space out applications and wait for the hard inquiry from the previous card to age before explore for the next one.
What if I travel internationally — do these cards work abroad?
Premium cards have no foreign transaction fees, which means you pay the same rate whether you use them in the US or overseas. Basic cards charge 2% to 3% on foreign transactions. Premium cards also include travel protections like emergency medical and dental coverage, which basic cards do not offer. Always notify your card issuer before traveling so they do not block your transactions.