The Points Guy’s Brian Kelly gave me a crash course in annual fees and flexible redemptions Last week I wrote about working with a financial adviser to pay down my credit-card balance and get my debt under control. So you might be wondering why I’m already talking about shiny new cards with triple-digit annual fees. I’m not applying for one yet.
My first priority is paying off existing balances without adding to them. But once the debt is gone, I want to consider whether a travel rewards card could help offset the cost of trips I’m already planning to take — without encouraging me to spend more. Ex-Deloitte CEO on Connecting College to the Corporate World Play video: Ex-Deloitte CEO on Connecting College to the Corporate World To figure out how someone like me, a newbie to the points world who has never owned a premium rewards card, should navigate this sphere without making costly mistakes, I decided to use my journalist privileges to phone a friend (or a source, to be precise) and ask Brian Kelly, aka The Points Guy, for help.
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I can unsubscribe at any time. Money tip of the week: Don’t go all in on a co-branded airline or hotel credit card Kelly, who founded the travel and credit-card comparison site The Points Guy in 2010, first warned me of what he considers one of the biggest mistakes newcomers to travel rewards make: choosing a card tied to a specific airline or hotel chain. Instead, he said, beginners may be better off opening a card with transferable points.
These points can be moved to participating airline and hotel loyalty programs, giving travelers more flexibility when they’re booking a trip. Say a couple reserved a block of rooms at a Hilton property for their wedding. Marriott cardholders attending the event would be out of luck if they wanted to use points.
Those with American Express points, however, may be able to transfer those points to Hilton or another participating hotel program offering a better deal. Three things to consider before choosing a travel rewards card Beyond paying off your balance in full every month to avoid interest charges, Kelly suggested considering three things: the annual fee, the card’s protections and what happens if the card stops working for you. 1. **Calculate what the annual fee will actually cost you:** Start with the fee. Amex Platinum, for instance, has a whopping $895 annual fee, but the benefits may mitigate that cost.
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