Every year, you should evaluate what’s in your wallet and decide which cards you’re keeping. Typically, it’s best to make the decision on whether you’re keeping a card when its annual fee is due.
To make that decision, you should consider the cost of the annual fee and what you get from it. Even when a card has a seemingly-low annual fee, that doesn’t automatically justify it.
So is the IHG Rewards Premier Credit Card‘s annual fee of $99 worth it? Let’s take a look.
Welcome bonus
New applicants for the IHG Premier card can earn 175,000 bonus points after spending $3,000 in the first three months from account opening. This is the best bonus we’ve ever seen on this card, and TPG values it at $875.
Note that you can’t get this bonus if you currently have a personal IHG credit card (such as the IHG Rewards Traveler Credit Card) or if you’ve received a welcome bonus on any IHG personal credit card in the past 24 months.
Related: The ultimate guide to credit card application restrictions
You can redeem points for luxury stays at hotels like the InterContinental Maldives Maamunagau Resort or budget-friendly properties like the Holiday Inn Agra — the city where you can visit the Taj Mahal. The price you see when searching for hotels will be the number of points required per night.
Annual free night award
On each account anniversary, you’ll receive a free night award worth up to 40,000 points, valid for bookings with IHG One Rewards. If you want to redeem it for a hotel that costs more, you can add an unlimited number of points.
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Related: How to use the IHG Rewards anniversary night certificate
This free night award can be used for $200 in value without much effort. Thus, this benefit alone could justify the card’s annual fee of $99.
$50 in United TravelBank credit
In January and July, you’ll receive $25 credits to your United TravelBank balance. These funds can be used to purchase flights operated by United and United Express. These funds can reduce your out-of-pocket costs when buying cash fares.
You can’t use these funds to pay taxes and fees on award travel, and you can’t combine TravelBank funds with vouchers from canceled flights. You also can’t use these funds for inflight purchases.
Automatic status
You’ll enjoy complimentary Platinum Elite status with the IHG Premier card. This is the second-highest tier in IHG One Rewards.
Benefits at this level 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 60% bonus points (so 16 points per dollar total) on paid stays with IHG.
TPG values Platinum Elite status at $1,245 per year.
Fourth night free on award stays
IHG credit cardholders also can use the “fourth night free” benefit when redeeming points for award stays with IHG.
When using points to cover a stay of four nights or more, each fourth night is free. The value of this benefit will vary, based on how often you use it and the price of hotels where you use it.
Other perks
On top of earning 16 points per dollar on paid stays at IHG (thanks to your Platinum Elite status), you’ll also earn 10 points per dollar at IHG when paying with the Premier card. Additionally, you’ll earn 5 points per dollar on travel and gas stations, 5 points per dollar on dining (including takeout and eligible delivery services) and 3 points per dollar on other purchases. That amounts to a 5%, 2.5% and 1.5% return on spending, respectively, based on our valuations.
Other key benefits include reimbursement (once every four years) for your application fee to Global Entry, TSA PreCheck or Nexus and a 20% discount on points purchases, though this can’t be added to other sales on IHG points. You’ll also earn a $100 statement credit and 10,000 bonus points after spending $20,000 on purchases on your card in a calendar year.
The IHG Premier card also offers valuable travel and shopping protections. You’ll enjoy trip cancellation/interruption insurance, purchase protection, rental car insurance (which is secondary in the U.S. but primary coverage elsewhere), lost luggage reimbursement and extended warranty coverage.
Related: IHG Rewards Premier Credit Card review
Bottom line
Understanding and using your credit card’s benefits can help you get your money’s worth — making the annual fee worth it each year on cards like the IHG Premier Credit Card. If you can use the card’s perks for average value (or better), you may have no qualms about keeping this card in your wallet. However, if you stay with IHG only rarely and don’t take advantage of the cardholder benefits, then even $99 might seem too expensive for this card.
Official application link: IHG Rewards Premier Credit Card
