The Biggest Beginner Mistake With Travel Rewards Cards
Travel expert Brian Kelly of The Points Guy warns new cardholders about the most common misstep that costs them real money.
New travel rewards credit card holders frequently leave significant value on the table by misunderstanding how to use their cards effectively, according to Brian Kelly, founder of The Points Guy, who recently outlined the most critical beginner error in an interview with MarketWatch.
Kelly's central warning centers on annual fees — specifically, the failure of new cardholders to offset those fees through card benefits and redemptions before the renewal date arrives. Many beginners fixate on the sticker shock of a $95, $250, or even $695 annual fee without calculating whether the card's perks — lounge access, travel credits, bonus points — more than cover that cost when actively used.
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The redemption side of the equation presents an equally common pitfall. Kelly emphasized that earning points is only half the equation; redeeming them strategically is where beginners most often stumble. Cashing points in for low-value options such as gift cards or merchandise can yield a fraction of the value compared with transferring points to airline or hotel partners for premium travel bookings.
The advice arrives at a moment when travel costs continue to climb, making the efficiency of every rewards dollar increasingly consequential for consumers trying to manage vacation budgets. Kelly's guidance suggests that beginners treat the annual fee as a benchmark to clear, actively tracking credits and bonus categories throughout the card year rather than waiting until renewal to assess value.
For anyone entering the travel card space, Kelly's framework boils down to deliberate, ongoing management rather than passive accumulation. Continue reading at MarketWatch.com.
