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.
