A Fourth Tier of Credit Cards Has Begun To Emerge

For a long time, credit cards have generally fallen into three tiers: no-annual-fee cards, mid-tier cards with annual fees around $95 and premium cards with annual fees measured in the hundreds (these used to cluster around $400 or $500 per year, now it’s more like $800 or $900 in many cases).

The upmarket migration of luxury credit cards such as the Chase Sapphire Reserve® and American Express Platinum Card® has created a large (and growing) gap between the traditional middle and premium tiers. And we all know that businesses see gaps and like to fill them with profit.

In this case, they’ve begun to do that by introducing a fourth tier of cards — upper-middle-class cards, if you will — and I expect more cards at that level are on the way. This is good news for the many households left behind by the soaring annual fees of premium cards, but underwhelmed by the traditional mid-tier offerings.

There’s a lot of potential value in this emerging market segment, as well as opportunities for card issuers to be even more creative when it comes to what this group is interested in. For example, where’s the credit card with elevated rewards or statement credits for daycares and summer camps or airport lounge access for the whole family?

Have a question about credit cards? E-mail me at ted.rossman@bankrate.com and I’d be happy to help.

So let’s take a look at the current landscape and make some predictions about what might be coming.

Luxury cards have become much pricier

If you want the most comprehensive airport lounge access and the longest list of travel and lifestyle credits, you’re better off with a really high-end card such as the Amex Platinum or Chase Sapphire Reserve. But you’re going to pay a handsome price for those privileges: These cards have raised their annual fees by hundreds of dollars in recent years, to $895 and $795, respectively. You’re not getting champagne travel on a beer budget anymore. Recent fee increases have promoted an even greater air of exclusivity — champagne travel on a caviar budget, if you will.

I don’t see that trend reversing anytime soon. We haven’t reached the top of the annual fee mountain yet. Within the next few years, one or both of these cards will likely eclipse the $1,000 annual fee threshold — and there will be plenty of people willing to pay it. The high-end consumer is doing quite well. Moody’s, for instance, reports that the top 10% of earners now account for 50% of all spending (a record high). Card issuers are tripping over each other in an effort to woo these heavy spenders.

But there’s inevitably going to be some attrition, too, and I see that as a feature of the strategy, not a bug.

If everyone is special, then no one is

As airport lounge access has become an increasingly widespread credit card perk, some cardholders complain that airport lounges have become too crowded. Certain issuers have trimmed back guest privileges as a potential antidote (the Capital One Venture X Rewards Credit Card, for instance, is cutting free guest benefits for most cardholders in early 2026).

Another lever that card issuers are pulling is to set higher barriers to entry, such as the higher annual fees announced over the summer on the Amex Platinum and Chase Sapphire Reserve. And if some cardholders downgrade or cancel their cards as a result, that shouldn’t surprise the issuers. They might even welcome it to some extent, if their remaining premium cardholders feel extra special and others switch to one of the company’s other products. Introducing more “premium lite” cards could help keep them in the fold.

All of this points to the necessity of an expanded grouping of credit cards targeted at the mass affluent. After all, HENRYs (high earners not rich yet) need credit cards, too. Credit card marketers will be smart to lean further in this direction, because this is an already lucrative segment of the population which should become even more so in the future as careers grow and incomes expand.

What ‘fourth-tier’ cards already exist?

There are potentially exciting cards coming as issuers work to tap into this in-between market, but waiting for banks to introduce new “premium lite” cards isn’t going to meet your needs today. The good news is that there are a few existing products that fall squarely in that upper-middle tier when it comes to their annual fees and, to some extent, their benefits.

American Express Gold Card

The best (and most longstanding) example of a “mid-tier plus” credit card is the American Express® Gold Card. With a $325 annual fee, it’s hardly cheap, but it’s a lot more affordable than the $895 you need to shell out every year for the Platinum Card. The Gold Card’s list of perks isn’t nearly as extensive (airport lounge access is a notable omission), but it gives a generous 4X points on a hefty amount of restaurant and U.S. supermarket purchases (up to $50,000 and $25,000 in annual purchases, respectively, then 1X points after that). That appeals to big spenders of all kinds, whether you’re a growing family or a household made up of a couple of DINKs (dual-income, no kids).

Gold cardholders also earn elevated rewards on many flight and hotel purchases, along with hundreds of dollars in annual credits for a wide variety of travel, dining and rideshare expenses. This is a solid option, particularly for high-spending foodies who like to travel but can’t justify the Platinum Card’s lofty price tag.

Capital One Venture X

The Capital One Venture X Rewards Credit Card debuted in 2021 to challenge the Sapphire Reserve and Amex Platinum at the top of the market, but its $395 annual fee is now less than half of what those other cards charge. It beats the Gold Card on airport lounge access, although it doesn’t have as many everyday perks. The Venture X is a hybrid example that falls in between the traditional middle tier and luxury rivals that recently became much more expensive. Capital One has an opportunity to position this card as more of a mass-market play.

Citi/AAdvantage Globe Card

Last month, Citi and American Airlines launched another card into the growing mix of offerings that sit between the traditional middle and high tiers. The Citi® / AAdvantage® Globe™ Mastercard®, which has a $350 annual fee, gives cardholders a taste of luxury at a more affordable price point than many rivals. Among other benefits, customers get four airport lounge passes each year, up to $240 in annual Turo credits and a few hundred dollars in additional credits ranging from in-flight purchases to personal training, live entertainment, expedited security screening and more.

Bilt Mastercard

In some cases, issuers already have products that they’re working to adapt for this upwardly mobile, not-premium-yet set.

Bilt, for instance, is doing some fascinating things that appeal to young professionals. They may be HENRYs today, but they could be truly rich soon. On the face of it, the Bilt Mastercard® is the card for renters. It’s the only credit card that allows everyone to pay rent (and earn rewards) without a transaction fee. But it’s also much more than that.

Bilt offers many compelling rewards opportunities ranging from rent payments to travel, dining and more. Plus, it features a really generous list of transfer partners and a host of other incentives that emphasize spending in your local neighborhood. Bilt has created its own loyalty ecosystem and has teased two new cards coming in 2026 that will build upon its no-annual-fee roots. The forthcoming $495 annual fee version (details to be announced) feels like it will fit the upper-middle-class credit card narrative. There will also be a $95 annual fee version with a shorter set of benefits and a lower barrier to entry.

Interestingly, Bilt is expanding upon its renter roots with a path to homeownership program that includes credit building and mortgage rewards. The company keeps working to appeal to the upwardly mobile in very unique ways.

The bottom line

Between fast-growing fintech startups like Bilt and established players such as American Express, Citi and Capital One, credit card issuers have begun carving out a new niche in the traditional credit card landscape. It’s not just “no fee, $95 fee or $795 fee” anymore. There’s a growing group of “upper-middle-class” credit cards with annual fees in the $300 to $500 range. I expect this category to continue to expand as luxury cards move further upmarket and leave a gap in their wake.