The miles & points hobby has evolved a lot over the years, both for better and worse. Obviously nowadays the credit card space is an integral part of the miles & points world, since it’s one of the best ways to earn rewards. With that in mind, I can’t help but reflect on a general trend I’m seeing and feeling, as the credit card space continues to evolve.
In this post:
As cards get more complicated, the fatigue is real
In recent years, we’ve seen the popularity of premium credit cards increase massively, probably coinciding with the generally strong demand for “premium leisure” travel. With that demand, we’ve seen card issuers do a lot to evolve their product offerings. We often see very lucrative cards introduced, and then over time, some changes are made, to optimize profitability.
The trend is pretty consistent — card annual fees increase, but also add perks to cards, which in theory, can significantly outweigh the annual fee. These perks are often with companies that the card issuers have partnerships with, or the perks are designed in ways where the card issuer can further monetize cardmembers (like booking hotels through a portal). Many of the perks are also designed for there to be some breakage, with benefits only valid monthly, quarterly, semi-annually, etc.
Generally, my decision on whether to keep a card in the long run depends on whether the value I can get from a card outweighs the annual fee. Sure, it might require jumping through some hoops, but I’m typically happy to do it, with perks like lounge access being the icing on the cake.
But as time goes on, I’m finding myself paying more and more in annual fees, all while having a longer and longer list of tasks I need to complete for the cards to actually make sense for me, in terms of coming out ahead.
From redeeming free night awards before they expire, to using monthly dining and rideshare credits, to remembering to put five transactions per billing cycle on a card, there’s a lot to keep track of (this is just the tip of the iceberg). I’m sure if I put my yearly credit card “task” list on paper, there would be hundreds of tasks I need to complete.
Admittedly I have more credit cards than the average person, so this is very much a problem for those who are specifically points hobbyists, rather than the average consumer.
But it all makes me wonder… is this complicated strategy worth it, or are many of us better off just greatly simplifying things, and not having to worry about these benefits? With effort I can make these individual annual fees worth it, but more fundamentally, what am I accomplishing by doing that?
I’m coming out ahead by a few bucks, or maybe I get access to a particular lounge I wouldn’t otherwise get access to. But is that worth the effort, the mental bandwidth it takes up, and the upfront cost of annual fees?
This all came to my mind yesterday when I realized that I’ve totally forgotten to use the $25 monthly dining credit on one of my cards for the past three months, because I forgot I had that card, for a moment. I’m not much of a list person, so clearly I just didn’t have the mental bandwidth to remember that anymore. That’s at least partly because of the number of other perks I have to keep track of.
Trying to recoup credit card annual fees with all the published benefits sometimes feels like a part-time job in and of itself.
Maybe a simple card strategy is the way to go?
Look, I’m not advocating for giving up on credit cards completely (I know, you’ll be shocked to hear that). 😉 I still get tons of value from them overall, and while the best ways to redeem points have evolved, there are still lots of great opportunities. However, I am increasingly thinking that cards with marginal value or with a lot of effort required might not be worth holding onto just for those perks.
I think there’s huge value to cards that otherwise get you lots of value, in terms of the return on spending, or cards that have benefits that are really easy to use. But I can’t help but think that I’m not alone in feeling this fatigue from having so many cards, and wondering if it’s really all worth it.
Honestly, people having a simpler stranger might be a win for all parties involved. After all, card issuers generally want you to actually use your card for spending, rather than just keeping it for the perks. So I haven’t made any decisions yet for my own strategy, though I’m curious to hear how others feel, and if others are simplifying their card strategy because of the increasing hurdles required to make the math on cards work.
Bottom line
Over time, we’re seeing credit card annual fees increase, as card issuers add more perks, but they often require jumping through some hoops. If you’re willing to put in the effort and you’re a certain type of consumer, I tend to think that it’s easy enough to make the math on cards work.
However, I can’t help but wonder how others are feeling, in terms of the increasing hurdles to jump through to maximize rewards.
Where do you stand on the concept of credit card fatigue?
I agree. I keep it simple. One high end card for travel and rewards points(Amex platinum) and one cheaper hotel visa card for nights/ status. There is plenty of room in my wallet for cash with only 2 cards
CC fatigue is definitely real, but combined with how hard it is becoming these days to actually redeem points for max value, that’s why so many of us are starting to wonder if it’s all even worth it.
Credit cards can be for spending or perks and these companies are overplaying their hand.
Chase took a great setup for spending and nuked it. The CSR/CFU setup used to be a great hybrid points/cashback option. If a deal emerged great, I'd be happy to transfer points. If not, the 1.5cc made for fair redemptions. Jumping through a few hoops for the chance at a great reward is part of the joy of the hobby....
Credit cards can be for spending or perks and these companies are overplaying their hand.
Chase took a great setup for spending and nuked it. The CSR/CFU setup used to be a great hybrid points/cashback option. If a deal emerged great, I'd be happy to transfer points. If not, the 1.5cc made for fair redemptions. Jumping through a few hoops for the chance at a great reward is part of the joy of the hobby. Now that you need a spread sheet to see if you have a chance of breaking even is going to turn all but the most die hard of fans off. Unless you only redeem for unicorns, there are many simple cashback alternatives that work far better (WF, BOA, Cap One). And if all those companies follow suit, a 2% cashback setup is not so bad.
I’m not sure what it is exactly, but the sapphire changes are a real gut punch.
The CSP was my first travel card when I started in 2014, and I’ve had the CSR since it came out. Minus Covid, it’s been an amazing decade of inexpensive travel around the world with my family.
But I can’t even figure out how I would use this card. I guess 4x on hotels and primary insurance...
I’m not sure what it is exactly, but the sapphire changes are a real gut punch.
The CSP was my first travel card when I started in 2014, and I’ve had the CSR since it came out. Minus Covid, it’s been an amazing decade of inexpensive travel around the world with my family.
But I can’t even figure out how I would use this card. I guess 4x on hotels and primary insurance on rental cars? Will probably swap for the United club card which is much more compelling than previously.
Don't forget the TI on flights. That's really what pays for the card for me.
Definitely tired of jumping through hoops like this. When booking hotels for my most recent vacation, I found myself comparing prices across (i) individual hotel websites, (ii) hotel group websites, (iii) Amex portal, (iv) Citi portal, and (v) Capital One portal. The room availability and prices were usually different for every one of these options.
It's an easy call for me to declare adding Chase to the mix, with it's huge new AF on the...
Definitely tired of jumping through hoops like this. When booking hotels for my most recent vacation, I found myself comparing prices across (i) individual hotel websites, (ii) hotel group websites, (iii) Amex portal, (iv) Citi portal, and (v) Capital One portal. The room availability and prices were usually different for every one of these options.
It's an easy call for me to declare adding Chase to the mix, with it's huge new AF on the Reserve, is a bridge too far. No chance I will be renewing when my AF goes up.
I was talking about this with some family in-laws at Father's Day. I wonder how many of us might pay $49/yr or $99/yr to have an "AI"* or something similar optimize on travel. I could probably describe my (mildly nuts) mental flow on travel planning, but if I could just let a "robot" log into all of those accounts (even if I have to go through the CAPTCHAs) and have it spit out the best...
I was talking about this with some family in-laws at Father's Day. I wonder how many of us might pay $49/yr or $99/yr to have an "AI"* or something similar optimize on travel. I could probably describe my (mildly nuts) mental flow on travel planning, but if I could just let a "robot" log into all of those accounts (even if I have to go through the CAPTCHAs) and have it spit out the best option(s), that would be nice.
To be clear, I book my hotels direct 99% of the time...but Hyatt Globalist throwing out resort/destination fees sure makes for some nice lock-in. Flights, on the other hand...well, there the problem I have is that the airline's idea of the "best flights" is almost always nowhere near my ideal.
*Quotes because the term is misused so often.
I'd just be grateful for the amazingly bonkers generous cards you have in the US vs everywhere else!!
The fact that I have a spreadsheet to keep track of credits and benefits is probably indicative of the work that needs to go into this anymore, and I don't even have that many cards.
Makes me wonder if this is the pendulum reaching the end of its arc before it swings back. All the major players have now introduced/redesigned (or in the process of) their premium cards, upping fees and adding credits. I...
The fact that I have a spreadsheet to keep track of credits and benefits is probably indicative of the work that needs to go into this anymore, and I don't even have that many cards.
Makes me wonder if this is the pendulum reaching the end of its arc before it swings back. All the major players have now introduced/redesigned (or in the process of) their premium cards, upping fees and adding credits. I wonder if that creates a market opportunity for a mid-range card, in today's terms, that is more similar to where premium cards were 7-10 years ago. Solid point earning and a few status/credits that are actually useful.
In addition to the work needed, I wonder, too, if people will tire of the challenges of redeeming points. For those of us in the hobby with flexible schedules, there is a lot of value still. But if you were enticed into the game with promises for first-class airfare at peak travel season to an overwater villa, only to find it's impossible to do for most people, then dissatisfaction with the whole game will quickly build. Maybe a premium card that truly opens up more/better options for redeeming points could be another evolution.
This started at least three or four years ago for me with the AMEX Platinum. The AF was rising, the lounges were always crowded and unkempt and the benefits were becoming more and more "couponized." I cancelled it and have never regretted it. The VX is the highest AF card I have now and while it's 2X on everything is great the transfer partners, especially with hotels are mediocre. If and when the AF goes up I will seriously consider dropping it as well.
Before Covid we had trimmed out most incentive/coupon cards. Now we're mainly Chase Sapphire Preferred, Freedom Unlimited, Southwest cards for companion pass, Capital One Venture X (that might change in Feb), then whatever bonus we want with a card cancel or downgrade a year later. It was too much trying to keep track of things before and even now it's not entirely clear when we've used perks and haven't (WN upgraded boarding for example). After...
Before Covid we had trimmed out most incentive/coupon cards. Now we're mainly Chase Sapphire Preferred, Freedom Unlimited, Southwest cards for companion pass, Capital One Venture X (that might change in Feb), then whatever bonus we want with a card cancel or downgrade a year later. It was too much trying to keep track of things before and even now it's not entirely clear when we've used perks and haven't (WN upgraded boarding for example). After the Capital One announced lounge access changes I had started wondering if it was finally time to get the CSR again but these changes will probably keep it out of my wallet. If Amex Plat changes aren't too extreme that MIGHT be the card for me but to put a for back into the coupon world will require a lot out of me. But then the banks want someone who gets the card and forgets to use the perks; with so many people now not carrying revolving debt that and the AF are the only ways they'll make money on the product
I was getting tired of all the complexities before CSR announced it's dropping a key factor in my spend, tours and ship travel at 3X. I'm wondering if the new premium Alaska card will take up the slack with 3X on foreign spend, and the CSP will work for the rest. Then I can start backing out of Chase. Too many fee increases at once, with perks that don't benefit me. It was fun for a while, but the miles just don't pile up after the SUBs.
My partner and I are already somewhat fatigued.
We have mostly switched to a two-card solution (Citi Premier + Venture X) for most spend. Groceries, gas, hotels, and dining on the Premier for 3X points, and everything else on the Venture X for 2X points.
One free night cert from a CC will expire unused next week because our travel patterns over the last year didn't allow for a decent redemption. If I don't get...
My partner and I are already somewhat fatigued.
We have mostly switched to a two-card solution (Citi Premier + Venture X) for most spend. Groceries, gas, hotels, and dining on the Premier for 3X points, and everything else on the Venture X for 2X points.
One free night cert from a CC will expire unused next week because our travel patterns over the last year didn't allow for a decent redemption. If I don't get use out of that cert next year, it's hard to justify keeping the card.
I'm barely keeping up with the rotating 5X categories on my OG Freedom card, because of the quarterly category churn.
Downgraded from CSR to CSP last year.
Couple all that with dwindling premium Star Alliance seat availability to Asia, and the hobby is more work and less fun than years past.
Sounds like you hit the nail on the head. One irony is that Chase already has a simple premium card for people who don’t want a bunch of complicated coupon cutting but they’re changing it substantially for the worse. Of course I’m referring to the CSR. Both the new business and personal versions are annoying, intentionally convoluted, expensive, and time consuming - and those are if you belong to the subset of people who might...
Sounds like you hit the nail on the head. One irony is that Chase already has a simple premium card for people who don’t want a bunch of complicated coupon cutting but they’re changing it substantially for the worse. Of course I’m referring to the CSR. Both the new business and personal versions are annoying, intentionally convoluted, expensive, and time consuming - and those are if you belong to the subset of people who might even make the card work.
I want a card - personal or business - that offers good value and has bonus categories I can readily use. One that has flexible usage points for either direct cash out at a solid value or transfer to decent partners. Ideally this card would have good lounge access. Of course I’m pretty much describing the CSR again, whether by intent or coincidence. I’m willing to pay a premium price for this card and a smart bank would try to find ways to draw me into their infrastructure through this card. In the case of Chase and the enhanced CSR, Chase is actually pushing people who, while not rich, do a lot of business and personal finance away from the bank rather than finding ways to entice us.
Yes, definitely feel the fatigue. Strongly considering downgrading from CSR to CSP when it comes up for renewal at the higher $795 ($495 if you include the $300 credit).
CSR had that $300 travel credit (the only decent credit it has) back when its AF was $450!
I’ve had it since before covid. Would be an easier pill to swallow if they also increased the credit. Although categories like transit, parking and uber are going away, I don’t have a problem getting the credit back though air and hotel purchases.
I, too, have credit card fatigue, and as the fees increase, so does the fatigue. My strategy will be to reduce the number of credit cards in my wallet and simplify my life.
Had this exact conversation with my spouse yesterday, Ben you are spot on with the mood of points hobbyists. I have the JPM Reserve (CSR with United Club thrown in), MS Platinum (free platinum card from Morgan Stanley), the Venture X, and the Ritz-Carlton card. It is a chore to maximize them all and I'm increasingly questioning the effort. We need to collectively push back and start canceling these cards. Chase was the straw. However,...
Had this exact conversation with my spouse yesterday, Ben you are spot on with the mood of points hobbyists. I have the JPM Reserve (CSR with United Club thrown in), MS Platinum (free platinum card from Morgan Stanley), the Venture X, and the Ritz-Carlton card. It is a chore to maximize them all and I'm increasingly questioning the effort. We need to collectively push back and start canceling these cards. Chase was the straw. However, I do believe we need to wait and see what the upcoming Platinum card changes are - would be nice if they added more bonus categories and made the card actually usable for spend. If they add 3x on travel to the Platinum Card, that would kill the CSR.
Right now I essentially only use the JPM Reserve and Venture X cards. The loss of 3x on travel from CSR/JMPR is a huge deal and I likely will just shift more spend to the Venture X card. Could use my BILT card for 2x, but more effort to track 5 purchases (I own my home), and I am reluctant to spin up a new ecosystem for 3x on travel with Wells Fargo Autograph.
Would use my Robinhood 3% card for everything except for the fact that I am going for international business redemptions as my goal.
Very timely. The CSR (outrageous) fee increase has motivated me to purge half of my cards. Brutal but necessary. Spending thousands of $$ for something like credit cards is absurd. They should be paying us to use them.
Having a similar moment - this may cause me to cancel 5-10 cards.
I definitely have credit card fatigue managing both my and my husband’s cards. I just got rid of the Bonvoy Brilliant (sorry Marriott, your devaluations are too much). Will keep the Aspire and Amex Gold (groceries and restaurants are a big expense), and husband has CSR and Amex Platinum. I think we can maximize the new CSR without much effort as we use DoorDash frequently, already subscribe to Apple Music/TV+, and the $300 credit helps,...
I definitely have credit card fatigue managing both my and my husband’s cards. I just got rid of the Bonvoy Brilliant (sorry Marriott, your devaluations are too much). Will keep the Aspire and Amex Gold (groceries and restaurants are a big expense), and husband has CSR and Amex Platinum. I think we can maximize the new CSR without much effort as we use DoorDash frequently, already subscribe to Apple Music/TV+, and the $300 credit helps, but the AU fee increase stings.
I've only kept a pair of Marriott cards for the FNAs (essentially it's two free nights per year for $190) and that's a legacy of the merger. But those cards /might/ get used twice a year; they exist for a single, identifiable, and easily redeemed benefit.
After a couple decades of AX Plat, I finally dumped it a couple months ago. Just wasn’t interested in chasing all the benefits to try to justify the high annual fee.
Over the last year I’ve simplified from 3 premier cards down to one (Citi Prestige), and from multiple hotel and airline cards to none. I usually pay for business class so don’t need the free checked bags benefit.
The only other card...
After a couple decades of AX Plat, I finally dumped it a couple months ago. Just wasn’t interested in chasing all the benefits to try to justify the high annual fee.
Over the last year I’ve simplified from 3 premier cards down to one (Citi Prestige), and from multiple hotel and airline cards to none. I usually pay for business class so don’t need the free checked bags benefit.
The only other card I’ve kept is the Chase Sapphire Preferred for the included primary auto rental coverage. I rent nearly every month, so it pays for itself many times over.
So from 12+ cards which carried annual fees down to 2. Much happier.
Honestly… managing myself and player 2 is getting exhausting. The coupons really give me less keeper cards. Capital One Venture X, Aspire, and Hyatt are really my only keeper cards that have annual fees.
Are you aware that the state of Israel is advertising on your site, justifying their attack on Iran?
And???? Israel is taking out Iran’s nuclear program for the entire Western world. Quit complaining…
@Dan
Israel cannot permanently end Iran's nuclear program without invading and occupying Iran permanently. Unfortunately, the "secret" to building nukes has been public knowledge for nations for decades, and while destroying existing nuclear infrastructure in Iran might delay Iran's construction of nuclear weapons, it won't prevent it. Iran has the institutional knowledge, and even if you magically assassinated every nuclear physicist in Iran there's plenty of nuclear powers who would help Iran out under...
@Dan
Israel cannot permanently end Iran's nuclear program without invading and occupying Iran permanently. Unfortunately, the "secret" to building nukes has been public knowledge for nations for decades, and while destroying existing nuclear infrastructure in Iran might delay Iran's construction of nuclear weapons, it won't prevent it. Iran has the institutional knowledge, and even if you magically assassinated every nuclear physicist in Iran there's plenty of nuclear powers who would help Iran out under the table. Netanyahu and Trump are trying to "solve" a problem of their own making that arose when Netanyahu got Trump to pull out of JCPOA, despite the disagreement of France, the UK, and heck, even a former Israeli Prime Minister, among many others.
Just for clarification, is Israel advertising directly? Or are they advertising via e.g. Google and it's just showing up here?
The problem seems clear to me. We the customers want simple offerings that save us money. The card issuers want complicated offerings that cause us to spend more than we want to.
Yes, yes it is. For me though, it’s also access to FHR, access to IAP, access to UR transfer partners (although CSP may be adequate now without 1.5x to fall back on with reserve), primary rental car insurance with CSR.
Makes it harder for me to cut ties, where I would a lot faster if it was just the coupon book
I use the reminders on my iPhone and they come up every month or quarter but I hate it as well.
Even if you're a savvy consumer and willing to put time and effort into this hobby, you still can't deal with multiple coupon books that overlap a great deal. This coupon-book approach is how the card issuers make you carry their own premium cards only, and no one else's. There isn't much room to further increase fees and add more coupons. This business is getting close to a dead end.
Nothing beats a single card that gives you 2% back on everything. And cash instead of devaluing currently gets 4-5% interest in a money market account!
lol unless your money market account is getting you 15% returns (or you are making *terrible/lazy* point transfers/redemptions) that's a huge exaggeration. And 2% for cashback every day spend is not competitive at all -- 2% is the new baseline for *points* every day spend, so with pure cashback you'd be wanting at least 3.5% average.
Also, was the last time transferrable points were significantly devalued?? Unless you're referring to cards that earn specific currencies...
lol unless your money market account is getting you 15% returns (or you are making *terrible/lazy* point transfers/redemptions) that's a huge exaggeration. And 2% for cashback every day spend is not competitive at all -- 2% is the new baseline for *points* every day spend, so with pure cashback you'd be wanting at least 3.5% average.
Also, was the last time transferrable points were significantly devalued?? Unless you're referring to cards that earn specific currencies like SkyMiles, in which case disregard my whole message.
Yes, the expensive AF card situation is annoying, but -- at least for semi-frequent travelers -- we are still a long way from being better off with cashback cards.
I def have this fatigue. One of the main reasons why I got rid of the Amex Platinum. With the proposed changes on the Chase SR, my plan at this point is to likely keep it for one more year (renew in Jan) and see if I can get the benefit from it, while using the UR points for more travel. After that, maybe I'll apply for the other sapphire. It does seem to be...
I def have this fatigue. One of the main reasons why I got rid of the Amex Platinum. With the proposed changes on the Chase SR, my plan at this point is to likely keep it for one more year (renew in Jan) and see if I can get the benefit from it, while using the UR points for more travel. After that, maybe I'll apply for the other sapphire. It does seem to be easier to use.
Even when it comes to the hotel cards with free nights (I hold Hyatt, Marriott, and IHG) I often find myself scrambling near the expiration date to use them.
Ben - Sounds like you need a "Best 2/3 card wallet for most people" or "Best credit card combination <$100 AF" post.
Yes. Please.
I think it might be worth doing a series - at least, considering what the best combos are based on "free agent" travel vs being loyal to one airline or another. Heck, I think it might even be worth offering a paid consult for optimizing/simplifying wallets.
(It might also be worth doing a more brutal "IGNORE THESE COUPONS/IF YOU HAVE A, IGNORE B" series.)
That's easy.
There are basically two options:
(1) Team Citi (Premier + DoubleCash +/- Custom Cash), which gets you 3x on the big categories, 2x on everything else, plus or minus 5x on something with the Custom Cash, or
(2) Team Capital One (Spark + Venture or Venture X), which gets you 3x on some things, 2x on everything else.
Both let you transfer points if you want to play that...
That's easy.
There are basically two options:
(1) Team Citi (Premier + DoubleCash +/- Custom Cash), which gets you 3x on the big categories, 2x on everything else, plus or minus 5x on something with the Custom Cash, or
(2) Team Capital One (Spark + Venture or Venture X), which gets you 3x on some things, 2x on everything else.
Both let you transfer points if you want to play that game, or just cash them out literally (Citi) or effectively (Cap1). Both can be had for a single $95 annual fee (again either literally - Premier/Venture, or effectively - Venture X, depending on how you value points/credit).
The problem there is it would end the blog, lol.
Could not agree more! As a holder of the CSR, Amex Plat, Cap One, and Citi Strata cards, it's starting to become very tiring to balance all of the random credits and perks. Not to mention, the increased awareness of the points game (you could argue that it's good or bad) via social media has made good redemptions nearly impossible. I was recently interested in a specific cabin on a specific airline...most everything was booked...
Could not agree more! As a holder of the CSR, Amex Plat, Cap One, and Citi Strata cards, it's starting to become very tiring to balance all of the random credits and perks. Not to mention, the increased awareness of the points game (you could argue that it's good or bad) via social media has made good redemptions nearly impossible. I was recently interested in a specific cabin on a specific airline...most everything was booked a year out already. I get the argument for flexibility in this hobby, but it is starting to feel like work.
I am thinking of getting rid of nearly all of these cards, in favor of cashback cards. At what point is cash the most flexible and realistic currency? If I can get the route I want, on the carrier and cabin that I want with cash, perhaps it is worth more than the 20 hours it takes me on random points sites to check for availability.
I get that you can still get those homerun 10x redemptions, but those are starting to feel more like unicorns. Perhaps we've gone full circle, and cash again is (still) king...
Amen.
There is an opportunity cost to the mental bandwidth required to keep track of all of these - it feels a lot like work.
I think a better strategy for anyone who doesn't particularly enjoy monitoring and maximising lots of different credit cards is to have:
1) A single premium credit card, which best suits your travel patterns and highest spending categories.
2) A single cashback card for all other spending. I know this view...
There is an opportunity cost to the mental bandwidth required to keep track of all of these - it feels a lot like work.
I think a better strategy for anyone who doesn't particularly enjoy monitoring and maximising lots of different credit cards is to have:
1) A single premium credit card, which best suits your travel patterns and highest spending categories.
2) A single cashback card for all other spending. I know this view is likely heresy to OMAAT readers, but I always argue that cashback is the ultimate points currency - it buys you any flight on any airline - and that flexibility is incredibly valuable.
3) A third card which changes every few months based on whoever has a good sign-up bonus
Any more than that is really tiresome to track.
Amusing title. Are you trying to troll us given that pushing a literal cornucopia of cards is your raison d'être?
I'm in an interesting situation with my World of Hyatt Card. I basically got it to get Discoverist status.
That being said, with AA and Hyatt's new partnership, I get Discoverist for "free" when I reach 100K Loyalty Points. For me, this renders the card pretty useless. I know someone will say "but you get a free night award every year". That is true, but they are piling up in my award tab. I...
I'm in an interesting situation with my World of Hyatt Card. I basically got it to get Discoverist status.
That being said, with AA and Hyatt's new partnership, I get Discoverist for "free" when I reach 100K Loyalty Points. For me, this renders the card pretty useless. I know someone will say "but you get a free night award every year". That is true, but they are piling up in my award tab. I like Hyatt for the money + points redemptions because I can get unattainable rooms (cash wise) for good deals. I am also not too interested in anything higher than Discoverist.
As of right now I am leaning towards cutting it up.
Honestly, my credit card strategy has evolved to be fairly simple:
Churn 'em:
- One card at a time, something with a good signup bonus that can be downgraded to a card without an annual fee and keep boosting my points balance
Primary cards:
- Bilt Mastercard (no AF, pay rent, decent bonus cat on dining & travel)
- Amex Blue Business plus (2x points on everything until $50K)
- Delta...
Honestly, my credit card strategy has evolved to be fairly simple:
Churn 'em:
- One card at a time, something with a good signup bonus that can be downgraded to a card without an annual fee and keep boosting my points balance
Primary cards:
- Bilt Mastercard (no AF, pay rent, decent bonus cat on dining & travel)
- Amex Blue Business plus (2x points on everything until $50K)
- Delta Skymiles Reserve (as a diamond, I don't really have a choice), gets me into Centurion + SkyClub when traveling
Hold 'em and forget 'em:
- Venture X ($300 annual travel credit + 10,000 anniversary points covers AF), gets me into Capitol One lounges
- Hyatt Card (cat 1-4 certificate covers AF)
- IHG Card (free night certificate covers AF)
I cancelled the Amex Platinum back in September 2023 when Delta decided to upend its loyalty program, and it was the best decision I ever made. The coupon booklet of benefits was already a pain in the a** to manage, and I still have Centurion access via my Reserve card so nothing lost there.
This is why I think that you should can premium cards a year after opening, it's not worth the hassle. The SUB is the benefit anyways, everything else is icing, and I could probably do with less icing anyways.
I already have CC fatigue before the new CSR revamp. Now that in addition to Amex cutting the 35% points rebate for the Biz Plat, I for sure will be going for a simplified strategy.
The monthly credit, even with my reminder app that auto-reset every month, is taking more mental bandwidth than I have to give.
It's also designed for you to beholden to use these vendors that you normally don't use....
I already have CC fatigue before the new CSR revamp. Now that in addition to Amex cutting the 35% points rebate for the Biz Plat, I for sure will be going for a simplified strategy.
The monthly credit, even with my reminder app that auto-reset every month, is taking more mental bandwidth than I have to give.
It's also designed for you to beholden to use these vendors that you normally don't use. I have never used Doordash/UberEats before these credits, but now feels like I'm forced to use them once a month just so I don't leave a "credit" on the table.
Time to get these monkeys off my back!
Same same same. I was willing to play the credit coupon game with my AMEX Plat, but now I've got to do it with two $800 AF cards! CSR was so easy to manage before this update. Additionally I've got 8 hotel credits in a given year to use. Strategy will be to close a few cards during the next year.
I say, leverage a select number of cards to meet some goals that matter to you. All I really care about is maintaining Hyatt Globalist with the Chase Hyatt cards and keeping Plat or above on American through spending on an AA Exec card. Then I keep a few Chase UR cards and transfer all the points to Hyatt. The rest is noise to me. Does it mean I sometimes have to stay at a...
I say, leverage a select number of cards to meet some goals that matter to you. All I really care about is maintaining Hyatt Globalist with the Chase Hyatt cards and keeping Plat or above on American through spending on an AA Exec card. Then I keep a few Chase UR cards and transfer all the points to Hyatt. The rest is noise to me. Does it mean I sometimes have to stay at a hotel without free breakfast perks or a room upgrade? Fine, I'll skip breakfast and walk across the street to a bakery. Sometimes its better to pay as you go for the things you consume than hunt down every hack in the world and then conform your life to maximizing the return.
I've been thinking the exact same thing lately! Why do I continue to support these corporations when they constantly devalue and take away perks. I got the Venture X for the lounge access and now that they have taken away the ability to travel with my wife to the lounge we can just buy a day pass when needed. We'll stick with no fee cards such as Citi Double Cash or the 2x points card through our local credit union.
I am seriously thinking of ditching my Chase sapphire reserve after the AF hike. I usually travel business class so I haven’t used my priority pass benefit for a long time and I never used the other credits. Points are nice but you got to use them but I have a balance of half a million! I only transfer them to Hyatt and buy tickets in the Chase portal but it is a pain to use comparing to Travelocity or buying direct.
Figure out your current spending profile, then get cards to maximize spending in those places and make sure you are able to earn points that you can redeem. Then stick with it for the long term. Just because something new comes out or you can earn more points with a different strategy but only if you do a multitude of other things does not make is sensible for everyone. If I add in a new...
Figure out your current spending profile, then get cards to maximize spending in those places and make sure you are able to earn points that you can redeem. Then stick with it for the long term. Just because something new comes out or you can earn more points with a different strategy but only if you do a multitude of other things does not make is sensible for everyone. If I add in a new card or replace a card, it has to either integrate into my existing strategy or I have to change strategies.
Too often I see... "New card, look at all these benefits, get this new card!" "But I don't use these benefits, they're useless to me." "But all these benefits!"
And, for most people, having only two or three cards will capture the lion's share of possible points. I see an article topic for Ben: the best two-card wallet, the best three-card wallet.
Approved ! AMEX Platinum. You heard the man people. Swipe ! Swipe ! Swipe !
The credit cards, particularly in the US, are the reason for the demise of the loyalty programs for everyone including outside the US.
Very true. Most of us who don’t have cards in US are the ones who are at the short end of the stick when it comes to redemptions and loyalty status. We have no control over how the airlines and hotels value their programs and end up at the mercy of American banks
Excellent topic. I've gone for simple: premium travel card & 2X card. Premium travel card, just pick one & go with it. While the CSR has become a coupon book, there is huge value & Chase has wisely made some semi-annual as opposed to monthly. Amex' monthly approach to coupons induces fatigue. Even if the Platinum refresh offers similar value, Amex has lost me with the monthly approach. I'm set with the CSR & moving on.
Honestly, my main impediment to future credit cards is ridiculous and arbitrary limits such as Chase’s 5/24 rule. Were it based solely on my income and credit score, there would be no limit to the number of credit cards I could maintain and mentally juggle.
This might well be changing. Chase is updating its application rules & some have said it appears Chase *might* be adopting the Amex pop-up. Under the current system, if you're not eligible for a sign-up bonus, you will not be able to get that card at all. Under the new system, if you're not eligible for a SUB, it will allow you to get the card without the SUB. Some have asked whether this also affects 5/24. Data points will tell us. Let's hope.
After I cancel my Amex Gold I’ll have two cards with an annual fee north of $100, Venture X and Hilton Aspire. No interest in dealing with the coupon book approach to gain minimal value.
Using 2 Boa cards that cover 95%+ of spending categories.
So much easier than dealing with Amex or Chase every other year for a new coupon book.
I still have a decent number of cards, but as said elsewhere in the comments it's the premium high(er) fee cards that are a pain to use. The $100~ AF hotel cards and the no AF cards are a non-issue. But to hell with trying to max value on the Amex Gold or Platinum. It isn't worth it, and while I've enjoyed the Gold ever since the PRG makeover all of the changes since and...
I still have a decent number of cards, but as said elsewhere in the comments it's the premium high(er) fee cards that are a pain to use. The $100~ AF hotel cards and the no AF cards are a non-issue. But to hell with trying to max value on the Amex Gold or Platinum. It isn't worth it, and while I've enjoyed the Gold ever since the PRG makeover all of the changes since and hiked annual fees have tanked the value proposition. At this point I'm keeping it open until I can redeem the MR for a splurge ANA trip, and then it's gone. I'll still hang on to my Delta Reserve and Delta Platinum as long as the BOGO ticket exists though, because at least with those the value proposition is clear and worthwhile. Beyond those two, the VentureX is the only premium card I'll keep for the foreseeable future.
My strategy is to sign up for a card if the welcome bonus makes sense, and renew only if the *easily usable* (i.e., annual or 2x per year) credits and benefits make sense. This is rarely the case for premium cards though CSR was an outlier between the travel credit and the 10x on Lyft. Gonna be a close call with the update.
Streamlined during COVID and its tremendously helped simplify my life. Daily goes on an AMEX EDP, AA Exec Card for travel and lounge access, Marriott for hotels since I travel weekly, and Alaska BofA for the yearly $99 companion fare. Done.
Yeah, that’s why my daily expenses go to BofA visa. I then redeem points for cash. Cleared about $1k since January.
I have AmEx Platinum and Sapphire Reserve, mostly for access to clubs. Hoping to consolidate on one this year.
I was way into expending of my cc collection during covid and the immediate period of revenge travel after it and get all sorts of designs (one of my most fav was the floral Amex Plat) and perks with the cards. But lately, I have closed a lot of cards and simplified my card rotation to just a single premium card with priority pass that lets me take guests (it covers me, my partner and...
I was way into expending of my cc collection during covid and the immediate period of revenge travel after it and get all sorts of designs (one of my most fav was the floral Amex Plat) and perks with the cards. But lately, I have closed a lot of cards and simplified my card rotation to just a single premium card with priority pass that lets me take guests (it covers me, my partner and our child), some other handy travel perks and also offers satisfactory points accrual and transfers. Alongside that I have 2 other cc on rotation for daily use, a cobranded Marriott Bonvoy card that has some great dining benefits and a few free nights every year depending on total expenditure, the other is a travel focused semi premium card that has good dining and shopping benefits and has the best accrual and balance transfer rates out of all my cards.
I do still have a few other cards but they don’t see much light of the day except in times of convenience or emergency
Note that my cards are mainly from Asian and European banks so my experience might differ greatly from the majority of people on this site.
Great blog, Ben. Spot on. It seemed like forever where the most difficult task was assigning and using the Amex Plat airline fee credits. Then that card became a coupon book with split credits. Now every other card is following (Capital One and Citi will follow), and it's a ridiculous task to keep track of all the credits in order to maximize the value of the annual fees. It definitely feels like a chore rather...
Great blog, Ben. Spot on. It seemed like forever where the most difficult task was assigning and using the Amex Plat airline fee credits. Then that card became a coupon book with split credits. Now every other card is following (Capital One and Citi will follow), and it's a ridiculous task to keep track of all the credits in order to maximize the value of the annual fees. It definitely feels like a chore rather than anything else. That is why the Reserve changes were such a bummer - it was the absolute easiest card to use and keep track of, so these changes really sting in that regard (especially losing the 3x on ANY travel).
Most cards ($99AF or lower) are pretty simple to manage. It's the premium lounge access $999AF coupon books that are starting to require a CPA to keep track. I wouldn't keep more than 1 of those.
Yep- I think any non-road warrior's analysis of travel rewards should now only include one premium ($400+) card.
Yeah. MOST of the lower-fee cards (sub-$99/$150) have only a small number of "benefits", and there's usually one with a clear value proposition that's used to sell the card (e.g. a free night at a hotel).
I have credit card fatigue. I have 19 credit cards and I just want to simplify and downsize to about 4. But you have to keep the cards for a certain amount of time or the bank will put you on their "naughty list" or "bad customer" list.
I totally hear this Ben- feel like I've got some decisions to make this summer and early next year as cards come up for renewal. Really need to figure out what I truly get the most value from relative to both fee and the "work" involved.
I couldn't agree more! As you pointed out, the "cost" of the card is not only the annual fee but all the mental bandwidth it takes to keep track of everything. While the cost keeps increasing, the chances of getting a substantial benefit keeps decreasing. While lounge access is easy, receiving upgrades or award seats at a decent redemption rarely happens. I suspect for many, like me, accumulating points is very addictive. Paying cash for...
I couldn't agree more! As you pointed out, the "cost" of the card is not only the annual fee but all the mental bandwidth it takes to keep track of everything. While the cost keeps increasing, the chances of getting a substantial benefit keeps decreasing. While lounge access is easy, receiving upgrades or award seats at a decent redemption rarely happens. I suspect for many, like me, accumulating points is very addictive. Paying cash for the benefits we hope to but rarely receive, is difficult. But when I truly look at the cost/benefit, paying for those perks I want is probably the best way to go.
Good post, Ben. The fatigue is definitely real. I switched my strategy over to Wells Fargo Autograph Signature for bonus categories and Venture for 2x everyday spend. It’s not the best powerhouse combo but for less than $200 in annual fees it’s solid.
Venture X really is the best if you can get approved for it, though.
Smart.
I do wonder if these ultra complicated high fee cards are an effort to price out churners? If you have 1 or 2 of these it’s not as bad, but when you have 5 or 6 the fatigue gets rough. The question will be how much of their spend and card fees are driven by that segment relative to others. Is this a concentrated effort to reduce the size of their premium book and focus on profitability?
True churners just sign up, get the bonus and try to get any other ongoing benefits, then cancel the card after a year. The ongoing benefits always pale in comparison to the sign up bonus.
US credit cards have screwed up points programs for everyone. Now, everything about points redemptions is framed around credit cards.
They make huge money selling points to credit card companies, the devaluations are based about how many points come from credit cards etc.
AFKLM make there points available to any card that wants them and pivoted their strategy to target credit card points.
This is exactly where I’m at. The “couponization” has made it too hard to keep track- I have to book a trip or 2 through capital one, then I need to have my Amex in UberEats, remember to pay for gas, etc. I find that I’m not getting full value on a lot of cards, and will be downgrading/canceling several this year (being careful that I don’t lose points balances!!)
You might find that, given your spending pattern, a two-card wallet will garner 90+ percent of total possible points (assuming you had the best earning card for each category). After that, each additional card achieves diminishing incremental benefit. Go with simplicity.
"... people having a simpler stranger..."
I think having a simple strategy is better ;)
It is definitely real for me. I am keeping my Amex Bonvoy card because I am good with the dining credits and the free night a year pays for the card.
Otherwise my only other true premium cards at this point is the Venture X and United Club Card. I basically use the Venture X for all purchases (2 points per dollar) is just easier for me to process and the card pays for itself...
It is definitely real for me. I am keeping my Amex Bonvoy card because I am good with the dining credits and the free night a year pays for the card.
Otherwise my only other true premium cards at this point is the Venture X and United Club Card. I basically use the Venture X for all purchases (2 points per dollar) is just easier for me to process and the card pays for itself with the travel credit and annual 10k. I fly United pretty exclusively for domestic travel for work so I value the lounges.
I do not need 40 dollar Saks 5th Ave socks and I live in a pretty rural location so most of the credits on these coupon cards are fairly useless.
For me, it comes down to a balance between effort and how much my time is worth. Sure, it's nice to get a free flight or upgrade once in a while, but I'm not going to spend hours researching the most lucrative balance transfer that yields me 1.5 cents per mile instead of 1.4 cents per mile. I'll probably just book the flight that seems like a reasonably good deal and call it a day.