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StitcherCredit cards once felt like endless possibility and hope as if it’s free money. But lately people are noticing something strange as points are harder to use, more complicated and annual fees keep going up. In this episode, they explain what’s happening, if it is still worth it and what to do instead.
Points are harder to use, perks are more complicated, annual fees are going up, oh my, what’s a girl to do?!
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The Truth About Credit Card Rewards
Jen and Jill explain that credit card rewards aren’t really meant to reward consumers. They’re designed to encourage more spending. Banks know that people who chase points and perks tend to spend more, keep their cards longer, and generate more profit through fees.
Because of this, companies have pushed rewards further with premium travel cards and expensive annual fees. Now many people are paying hundreds—sometimes nearly $1,000 a year—for cards, believing they’re saving money on travel while often spending more overall.
Is it still worth it to use travel rewards credit cards?
To answer simply, Jen and Jill say: In most cases yes but with huge caveats. Credit card companies are making rewards harder to maximize, so it requires more intention and careful use. Travel cards work best when you’re clear about where you’ll use them and what you’re actually trying to get out of the rewards.
With points quietly being devalued, they suggest planning your cards and travel well in advance. And while sites like The Points Guy may highlight cards with the “most valuable” points, those may not be the most valuable for you. The key is to look at your own travel plans and choose cards that fit your habits.
Last card and next card you’re signing up for?
Jill had chase reserve but as she maps it out, now she’s considering Frontier for her next one. While Jen had Royal Caribbean as Kai loves it but maybe they can get Carnival one day.
Bill of The Week
Thanks Beau for sharing your bill about buying new expensive tires for your new car!
Thanks so Much for Listening!
Thanks so much for listening. We love love love reading your kind reviews of our book Buy What You Love Without Going Broke and we especially loved this one from:
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Loved the book! Originally hooked on their podcast and was nice to have things in one place! Audible book on Spotify too!
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