Every year you should evaluate what’s in your wallet and decide which cards to keep. Typically, it’s best to make that decision before the next annual fee is due.
Things to consider include how much the annual fee costs and what value you get from a card. And remember: Even if a card has a lower annual fee, that doesn’t automatically mean it’s worth keeping.
The IHG One Rewards Premier Credit Card is a popular hotel card with a $99 annual fee, but is it worth a spot in your wallet? Here’s what you need to know before you choose.
Welcome offer
New applicants for the IHG Premier Card can earn 165,000 bonus points after spending $3,000 on eligible purchases with the card in the first three months of account opening. TPG values this bonus at $825.
Please note that you cannot get this bonus if you currently have an IHG personal credit card (such as the IHG One Rewards Traveler credit card) or if you have received a welcome bonus on an IHG personal credit card in the last 24 months.
Related: The Ultimate Guide to Credit Card Application Restrictions
You can redeem your points for luxury stays at hotels like the InterContinental Maldives Maamunagau Resort or budget-friendly accommodations like the Holiday Inn Agra – the city where you can visit the Taj Mahal. The price you see when you search for hotels is the number of points needed per night.
Annual price for free nights
On each account anniversary, you’ll receive a free night worth up to 40,000 points, valid for bookings with IHG One Rewards. If you want to exchange it for a hotel that is more expensive, you can also buy points.
Related: How to use the IHG Rewards Anniversary Night Certificate
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This free night reward can be used for a $200 value without much hassle. So this benefit alone could justify the $99 annual fee for the card.
$50 in United TravelBank credit
In January and July, you will receive $25 credits to your United TravelBank balance. This money can be used to purchase flights operated by United and United Express. These funds can lower your out-of-pocket costs when purchasing cash rates, although they do have limitations.
You cannot use this money to pay taxes and fees on award travel, and you cannot combine the TravelBank money with vouchers from canceled flights. You also cannot use this money for purchases on board.
Automatic status
With the IHG One Premier card you benefit from free Platinum Elite status. This is the second highest level in IHG One Rewards.
Benefits at this level include complimentary upgrades at check-in (subject to availability), guaranteed room availability, a welcome gift of snacks or drinks, early check-in, use of a priority check-in desk, and earning 16 points per dollar total on paid stays at IHG.
TPG values Platinum Elite status at $1,290 per year.
Fourth night free on award stays
IHG cardholders can also enjoy the ‘fourth night free’ benefit when redeeming points for award stays with IHG.
When using points for a stay of four nights or more, every fourth night is free. The value of this benefit varies depending on how often you use it and the price of the hotels where you use it.
Other benefits
In addition to earning 16 points per dollar on paid stays with IHG (thanks to your Platinum Elite status), you also earn 10 points per dollar with IHG when you pay with the Premier Card.
Plus, you’ll earn 5 points per dollar on travel, hotels, gas stations and restaurants (including takeout and eligible delivery services) and 3 points per dollar on other purchases. Based on our valuations, this equates to a return on expenditure of 5%, 2.5% and 1.5% respectively.
Other key benefits include reimbursement (once every four years) of your Global Entry, TSA PreCheck or Nexus application fee and a 20% discount on points purchases, although this cannot be added to other IHG points sales.
You’ll also earn a $100 statement credit and 10,000 bonus points after you spend $20,000 on purchases with your card in a calendar year.
The IHG One Premier card also provides valuable travel and shopping protection. You’ll benefit from trip cancellation/interruption insurance, purchase protection, rental car insurance (which is secondary in the US but primary coverage elsewhere), lost baggage reimbursement, and extended warranty coverage.
In short
If you can leverage the benefits of this card for an average value (or better), you should have no problem justifying the annual fee and keeping it in your wallet.
But if your IHG stays are infrequent and you’re not taking advantage of the cardholder benefits that come with the IHG Premier card, then the $99 annual fee may not be worth it to you.
Read our full review of the IHG One Rewards Premier here.
Apply here: IHG One Rewards Premier Credit Card