It used to be that $500 would get you a premium credit card. Now it gets you something just below that.

The popularity of ultra-luxe cards with ever-higher annual fees has led to a reshuffling of the market, with cards just below that tier now making up a new category for the not-quite-rich enough. These near-premium cards are increasingly being aimed at younger Americans eager for travel, dining out and the merry-go-round of other life experiences constantly on display on social media and in pop culture.

Skye Zhao couldn't justify paying $895 for an American Express Platinum card. But she crunched the numbers and realized the $325 annual fee for the Gold card would be worth the travel points and perks she could earn.

Another plus is the rose-gold metal card. "It's very pretty," said Zhao, a 25-year-old doctoral student in New York.

The reordering of the credit-card market comes after issuers have tricked out top-flight cards with new benefits to justify higher fees. Amex hiked the annual fee on its Platinum card by $200 last year, and the Chase Sapphire Reserve saw a similarly big leap from $550 to $795. The higher prices are pushing some to search for alternatives.

"What has emerged is what I would call the upper-middle-class option," said Ted Rossman, principal consumer finance analyst at Money Management International, a credit-counseling organization.

Part of the appeal of these near-premium cards is that they still confer a sense of exclusivity that doesn't come with free or lower-fee cards. They might have airport lounge access, for instance, or credits for popular restaurant chains.

But Rossman cautioned that such perks often aren't enough to justify the fees, and may offer only marginal upgrades from cheaper cards. In many cases, people might get better value from cards with no or lower fees.

Near-premium cards are nevertheless growing in popularity, particularly among Gen Zers and millennials. American Express says it designed its Gold card in recent years to appeal to a younger consumer who gives priority to dining and takeout, with its last major refresh of perks including credits to Dunkin' and Five Guys.

The average age for Gold cardholders is 29, compared with 33 for Platinum cardholders, according to the company. Christophe Le Caillec, Amex's chief financial officer, said at an industry conference last week that the Gold card is "like the favorite product" of Gen Z.

He said younger cardholders more broadly have been a key driver of revenue growth at Amex, including urban professionals who are "quite comfortable paying a card fee."

"Cracking that nut and having American Express being relevant to this very large and growing population was a major breakthrough for us," Le Caillec said.

In some cases, the near-premium cards are coming from airlines seeking to build customer loyalty and generate revenue from banks.

Alaska Airlines last year launched its Atmos Rewards Summit card after merging its rewards program with that of Hawaiian Airlines. The carrier considered higher annual fees before landing on $395, in part because it says it was late to the premium game.

"Most consumers aren't going to have two $800, $900 credit cards," said Brett Catlin, senior vice president of network, partnerships and loyalty at Alaska.

American Airlines and Citi also launched a card last year with an annual fee of $350, and Southwest Airlines and Chase plan to introduce a higher-end card next year. Southwest hasn't yet revealed the annual fee, but its current lineup of consumer cards range from $99 to $229.

The shifting market is leaving the door open for card issuers to stake a claim where they see potential for growth.

Capital One said its Venture X card, introduced in 2021, was designed to appeal to a consumer who wants access to some premium experiences, but also prizes value.

"It's a consumer who's doing that mental math," said Lia Dean, Capital One's president of banking and premium products. "But when they plan that trip and when they take that trip they want to stay at a nicer hotel, they want some enhanced experiences along the way."

Katie Suiters, a 38-year-old media trainer in McLean, Va., decided to upgrade to the Venture X card after she noticed more Capital One lounges at airports.

"There's unlimited tapas, they have cold bar, hot bar, to-go items. It's José Andrés," she said.

She thinks the $395 annual fee was "1,000% worth it." This summer, she said she visited the lounges at least 10 times.