Avoid these 3 mistakes to maximize your rewards credit card
If you are on the market for a first -class travel credit card, get ready to pay an even more heavy annual fee.
On Thursday, American Express now presented the latest version of the Platinum Card, who came from $ 695 at a fee of $ 895. In early this summer, JPMorgan Chase increased its annual fee for Sapphire Reserve to $ 795.
If you are not the money you want to participate in, or if you know that you will not be able to fully benefit from the advantages of an expensive card, you may be more comfortable with a lower -range reward card for a more modest fee.
Brian Kelly, the founder of Point Guy, but you should not stay away from paid cards. “No annual fee,” he says. “I believe it cheaper when it comes to credit cards.”
The biggest mistakes when it comes to maximizing reward credit cards.
Go away
Kelly doesn’t think you just need to pay a fee to pay. However, even those who adopt a comfortable approach to get and save benefits will find that a low -annual fee will be worth it.
“Annual paid cards often do not have big awards,” he says. “For anyone who spends any amounts of money, 95 dollars a year [a card] Food and travel 2x, plus all extra advantages are worth it. “
To choose a card running for you Experts say how to think about how you spend and turn to cards that offer more points for your most popular categories that offer more points that may include food, food or gas.
Kelly is important to check -in to see how your spending and reward preferences can change, even if you have a card that you already think is working for you.
“People generally do not change their cards as their lifestyles change, or he says. “When people have children, people do not travel too much or travel more or retire – they do not change their credit cards in a way that fits their lifestyles.”
Stacking Points
If you already have a reward card and you have a big score sitting around, it may mean that you need to pass to a different card. Or if you use a lower paid premium card.
“If you have difficulty using these points for years and you have a big balance and have not saved lately, I think it’s a red flag.” “You should be able to say, this currency is working for me to use points.”
If you save on the scores, you probably make a big mistake until you reach a certain number or cover a luxury journey, Credit experts say. This is because the reward programs can change the value of the points they want.
“You don’t want to stack the scores and miles,” he told CNBC Make Make in February. “You don’t want to be a millionaire. Not like 401 (K).”
Be able to negotiate
If you are uncomfortable with the annual fee of your card, you may always fall into a cheaper card – but you should not do this without asking if your credit card exporter helps you first.
“If you’re on the fence, the first thing you want to do is do nothing, or he says. “Call the credit card company and tell you that you are planning to cancel.”
This may leave you to the detention department, but if not, you should want to talk, Kelly says Kelly. After telling them that you are thinking of canceling, they can sweeten the agreement to continue your business.
“Most of the time they will give you the offers of discount or points that will make you at least one more year,” Kelly says Kelly. “And then you can go back the next year to re -evaluate.”
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