Just about anyone can reap the benefits of cards that come with a modest fee, says The Points Guy founder Brian Kelly.
If you’re in the market for a premium travel credit card, get ready to pay an even heftier annual fee.
On Thursday, American Express rolled out the latest version of its Platinum card, which now comes with a $895 fee, up from $695. Earlier this summer, JPMorgan Chase upped the annual charge for its Sapphire Reserve card to $795.
If that’s not money you’re willing to part with, or if you know you won’t be able to take full advantage of an expensive card’s perks, you may be more comfortable with a lower-rung rewards card with a more modest fee.
But you shouldn’t shy away from cards with fees altogether, says Brian Kelly, founder of The Points Guy. “Don’t go ‘no annual fee'”, he says. “I’m a big believer in cheaper is not better when it comes to credit cards.”
Here’s what he says are the biggest mistakes when it comes to maximizing rewards credit cards.Going the no-fee route
Kelly doesn’t think you should pay a fee just for the sake of paying one. But even those who take a casual approach to earning and redeeming benefits will likely find that a low annual fee is worth it, he says.
“No-annual-fee cards generally just don’t have great rewards”, he says.
