I have 14 credit cards, and their annual fees total more than $2,500. I’m planning to get rid of the cards I don’t fully utilize.
It’s easy to justify some of those fees, like on the Chase Sapphire Reserve and the Platinum Card® from American Express thanks to their amazing perks and annual statement credits. But I don’t travel with certain airlines and hotels enough to continue paying the high fees for some other cards.
Take a hard look at whether you’re fully utilizing the benefits of each credit card to decide whether it’s worth continuing to pay. And if you do decide to get rid of a card, consider the impact it will have on your credit score.
It’s all relative, especially in the world of points, miles, and award travel. I have 14 credit cards — a jaw-dropping number in the eyes of most of my friends and family, but a modest lineup compared to plenty of others who put time and effort into maximizing every dollar they spend to fuel their adventures around the globe.
I recently did a personal credit card inventory and found that I’m paying $2,654 in annual fees. It adds up quickly, especially because I have four premium credit cards with annual fees of $450 or higher.
Some cards are easily worth the high fee for me
A few cards are no-brainers for me to keep open, as I use their perks on a regular basis and they offer me bonus rewards on the purchases I make the most. These include the following:
The Chase Sapphire Reserve — Thanks to that $300 annual travel credit and the strong earning rate of 3x points on travel (excluding the $300 travel credit) and dining. I also find Chase points some of the easiest to use, thanks to a strong selection of travel partners including Hyatt and United, and the ability to redeem points directly through Chase’s travel portal at a strong rate of 1.5 cents apiece.
The Platinum Card from American Express — Yes, the $550 fee is a lot. But this card’s list of benefits is the longest around. You get up to $200 in Uber credits each year, up to a $200 annual airline fee credit, access to Amex’s fancy Centurion Lounges at select airports, 5x points on flights booked directly with airlines or through American Express Travel, and much, much more.
American Express® Gold Card — I love this card, and not only because I was lucky enough to get the limited-edition rose-gold version. It earns me 4x points at US supermarkets (on up to $25,000 per year, which I’ll never even approach, then 1x), so it’s my go-to for stocking up on groceries. The annual fee is $250, but that feels reasonable to me given other perks like 4x at restaurants and up to $120 in dining credits at select vendors including Grubhub and Seamless each cardmember year and up to a $100 airline fee credit each year.
I’m on …read more
Source:: Business Insider