The Biggest Travel Credit Card Mistake Beginners Make
The Points Guy's Brian Kelly warns new cardholders about a common misstep that undercuts the value of travel rewards.
New travel credit card holders frequently undermine their own rewards potential by overlooking one critical factor: the annual fee, according to Brian Kelly, founder of The Points Guy, a leading travel rewards advice platform.
Kelly, in guidance aimed at consumers navigating rising travel costs, cautioned that beginners often dismiss cards carrying annual fees without calculating whether the included perks — such as travel credits, lounge access, or bonus points — more than offset that upfront cost. Failing to run that math, he argues, is the single most common error novice cardholders make.
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The advice arrives as airfare, hotel rates, and overall travel expenses remain elevated, making the strategic use of points and miles more valuable than ever for budget-conscious travelers. Kelly's broader message is that a card with a $500 annual fee can effectively cost nothing — or even net a profit — if the holder fully utilizes its benefits.
Beyond the fee calculation, Kelly emphasizes that redemption strategy matters equally. Cardholders who accumulate points but cash them out for low-value options, such as statement credits, leave significant travel value on the table compared with those who transfer points to airline or hotel loyalty programs.
For consumers looking to stretch their travel budgets amid persistent inflation, understanding both sides of the equation — what a card costs and what it genuinely returns — is essential before applying. Continue reading at MarketWatch.com
