Travel and dining rewards don’t mean much when you can’t travel or dine. Here’s how credit card companies are fighting to keep your business — and your money
Dave Grossman spent seven months planning his blowout honeymoon, which was supposed to happen in April. The plan was to fly business class on Qatar Airways to the Maldives using miles; spend six nights at the Waldorf Astoria Maldives using Hilton points, then a week in Sri Lanka; and then fly home to New York in the Etihad First Class apartments. Grossman estimates the flights and hotel stays he booked on miles and points were worth close to $40,000.
Cards that were once focused on travel and dining are, like all of us, embracing life at home. Airline cards are now offering extra points on grocery store purchases. Hotel-branded cards that come loaded with hundreds of dollars of resort credit — funds earmarked for spending at a certain hotel or resort chain — are instead counting everyday restaurant takeout and delivery purchases against those amounts.
They’re right to be worried. Annual fees for high-end travel rewards cards can reach hundreds of dollars annually. These fees are easier to swallow when you’re using points and credits to book a five-star suite in Bali, but might feel less valuable when you’re using the pricey card to buy toilet paper. Ted Rossman, an industry analyst with creditcards.com, was surprised by the backlash when Chase Sapphire raised its annual fee by $100 in January to a total of $550.
But “there are only so many categories you can add, so when everyone adds the same ones it makes it — for someone with multiple cards at least — less valuable,” says Chris Hutchins, another so-called points optimizer and head of autonomous financial planning at Wealthfront.
For instance, a Platinum Amex can be downgraded to Gold or Green while maintaining Membership Rewards points. The top-of-the-line Citi Prestige can be downgraded to the Premier or Rewards+ cards without losing ThankYou Points. Hutchins cautions that some card issuers may allow you to downgrade your card to another card that isn’t part of the same rewards program, which could result in losing your points balance or losing the ability to use them in certain ways, so check first.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
7 Meditation Techniques Even Beginners Can DoTry these effective tips to get started with your own practice.
Read more »
How Can I Run Kimmy Schmidt's Life When I Can't Even Run My Own?'Kimmy vs. The Reverend poses the surprisingly difficult question: What if it's possible to watch TV wrong?'
Read more »
Abe's 'own goals' slash support rates even as Japan's coronavirus emergency set to be liftedA string of controversial missteps has slashed Japanese Prime Minister Shinzo Abe's support to levels that could threaten to end his term early, even as he prepares to lift a state of emergency after the rate of coronavirus infections declined.
Read more »
Drive-in shows, films, meals and even worship help ease lockdownsA handful of churches in Northern Ireland carried out drive-in services this weekend, but more are planning to do so in the coming weeks
Read more »
How Can I Run Kimmy Schmidt's Life When I Can't Even Run My Own?'Kimmy vs. The Reverend poses the surprisingly difficult question: What if it's possible to watch TV wrong?'
Read more »