Premium Credit Cards in Smaller Cities: How to Make the Math Work

High-end credit cards are increasingly embracing “lifestyle” perks, such as entry into exclusive events, credits toward pricey hotels and fancy gyms, even memberships to a chain of medical practices that offer same-day appointments. When you live in a major city with access to merchants that partner with credit card companies (and access to large airports), it’s easy to imagine how you’d use many of these benefits.

I once fit this archetype — an urban-dwelling young adult with disposable income. I DoorDashed, Ubered and Lyfted. I joined friends for classes at luxurious gyms. I traveled frequently from the three airports near my home that offered nonstop flight options to much of the world.

Then I moved to a midsized city, and my life changed. I rarely use ridesharing services, I exercise at home, and my local airport only offers nonstop flights to domestic locations. I carry a premium travel card, but only because I’m able to get just enough value to offset its fee.

It’s impossible for credit cards to be all things to all people, and it makes sense for card issuers to target affluent consumers in large population centers. But premium cards aren’t trying to be practical financial tools — that’s what no-annual-fee cash-back cards are for, and those are about as sexy as a sweater vest. What premium cards offer is aspirational.

“You’re joining the country club without actually joining the country club,” says Vann Graves, executive director of the Brandcenter, a graduate advertising program at Virginia Commonwealth University in Richmond, Virginia. “Even if you’re not traveling all the time, you could, because you have this card.”

If you don’t fit the target audience of an expensive travel credit card, you may still find value in it. With annual fees well north of $500 in some instances, though, the way a card makes you feel can only take you so far.

Look beyond the hype and do the math

Expensive credit cards are beautiful. They’re metal and sometimes come in limited-edition colors and finishes. They also weigh a lot, impressing cashiers and waitstaff. A high-end credit card sends a message every time it leaves your wallet. “It says, for $795 or $895, ‘You’re worthy,’” Graves says.

But don’t lose sight of the fact that they’re financial tools. When you shop around for a new card or think about whether to keep one for another year, tally up the benefits you know you’re likely to use — whether it’s reimbursement for renewing your TSA PreCheck membership, or credits toward services you already use, such as streaming subscriptions.

Focus on certain perks and forget the rest

When you live outside of the big-city bubble, you may lack the ability to use a buffet of benefits. Instead, your card may allow you to do a few things well.

For Jay Thompson, it’s exclusively flying on one airline. The closest airport to where he lives is in Corpus Christi, Texas, where he’s limited to just a few airlines and has guaranteed layovers within the state whenever he travels. Because he prefers layovers in Dallas, he’s loyal to American Airlines and carries its most expensive consumer credit card, spending more than $700 a year on annual fees for his card and the one his wife carries as an authorized user.

What sets this card apart for Thompson is membership to American’s Admirals Club lounges, which is valued at $750 to $850 per year for an individual, depending on your status with the airline. “I know wanting to use an airport lounge is the definition of a first-world problem, but it just makes the travel experience a whole lot better,” he says.

Unlike Thompson, I’m not loyal to any one airline, but my card’s annual travel and dining credits alone give me value with minimal effort on my part. (And like Thompson, I enjoy a good airport lounge.)

Use the perks when you travel

Perks that are hard to use at home can be easy to use in a bigger city, so think about how you can use them when you travel. Relying on ridesharing services, and getting a small discount with your card’s credit, might be more economical and convenient than renting a car, for example.

My dining credit only works at one restaurant where I live, but I have trips to New York and Chicago planned for later this year, so I can use the credit for some special experiences.

As you plan travel, consider all the ways your card can make the experience better, from lounge access to hotel room upgrades. Each of those benefits has a dollar value, so whenever you use them, you’re chipping away at your card’s annual fee.

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