Don’t Get Travel Credit Cards Unless You Can Handle These 6 Things!
HTML-код
- Опубликовано: 11 июл 2024
- Are travel credit cards worth it?! If you can’t handle these 6 things, then the answer is a BIG NO! Learn what these things are BEFORE you apply for your next credit card. Click “Show More” to see Ad Disclosure.
💳👉 VIEW MORE CREDIT CARD OFFERS!
markscreditcards.com/offers
🛍 RAKUTEN - Earn Cash Back!
markscreditcards.com/rakuten
🏦 SOFI CHECKING & SAVINGS - Get $25! (or more w/ direct deposit)
markscreditcards.com/sofibanking
📲 MAXREWARDS - Manage credit cards & rewards!
Get Gold level for free with PROMO CODE = markr
markscreditcards.com/maxrewards
📊 GET FREE STOCKS FROM MOOMOO
markscreditcards.com/moomoo
📊 GET FREE STOCKS FROM WEBULL
markscreditcards.com/webull
🔐 AURA - Identity Theft Protection & More!
Get Your 2-Week Free Trial: markscreditcards.com/aura
🥇 CHANNEL MEMBERSHIP - VIP Perks!
markscreditcards.com/join
If you’re considering applying for a travel credit card, then there are a number of things you’ll have to deal with to ensure the card makes sense.
1 | Annual Fees
Many travel credit cards have annual fees of $95 and up. For instance, the Chase Sapphire Preferred has a $95 annual fee, the Chase Sapphire Reserve has a $550 annual fee, the Amex Platinum Card has a $695 annual fee, the Amex Gold Card has a $250 annual fee, the Citi Premier Card has a $95 annual fee, and the Capital One Venture X has a $395 annual fee. However, a lot of these premium travel credit cards come with benefits that can outweigh the cost (e.g. airport lounge access via a Priority Pass membership).
2 | Devaluations
Credit card points and miles tend to lose value over time. This is why the phrase “earn and burn” is so common in the industry. A hotel costing 60,000 points now might cost 80,000 points in the future. Once you have enough rewards to take a trip, it’s probably a good time to book it. To help hedge against this, it’s often best to focus on flexible and transferrable points as those tend to get devalued less often and less dramatically. Examples include Chase Ultimate Rewards points, Amex Membership Rewards points, Citi ThankYou points, Capital One Venture miles, and Bilt Rewards points.
3 | Expiration Dates
Here we’re referring to points and miles, credits, certificates, and other benefits. All of these typically have a lifespan (e.g. monthly, quarterly, annually, etc.) before they expire or renew, and many do not roll over.
4 | Managing Benefits
The credit card benefits you receive have terms, restrictions, availability constraints, and some work required in order to maximize them. Be sure you’re able to juggle them in order to more easily justify any annual fees.
5 | Learning Curve
Unlike cash back credit cards, travel credit cards are much more complex. Their rewards often require you to plan in advance because award availability for certain flights or hotels may not be open year-round. The value of points or miles from one program may also have entirely different values compared to another program, so you’ll want to learn the average values for Chase Ultimate Rewards points, Amex Membership Rewards points, etc., including the rewards values for airline and hotel programs. Additionally, you’ll want to understand transfer partners and airline alliances to take better advantage of your rewards (e.g. redeeming points for maximum value).
6 | Bigger Spend Requirements
In order to earn the credit card signup bonuses, you’ll find that the spend requirements are oftentimes higher on travel credit cards. Make sure your monthly budget allows for the required spend prior to applying (otherwise, you’ll likely want to avoid getting the card).
Disclosure: This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Mark Reese is not a financial advisor.
#creditcards #creditcard #credit 
Хобби
I like how you said to think of annual fees as buying into a benefits package in a sense. I always tell people to remember that an annual fee is a prepayment for benefits you'll be using throughout the year, but unfortunately, a lot of people think of the credits on these cards as "free value" when that's not really the case. Great video all around!
Absolutely. Cards w/ a lot of benefits are usually far from 'free' 🤙
I’m very thankful with you, the quality and complete of the info provide in all your videos, and the easy to understand of your explicaron!
Glad to hear you find value in the videos!
Nice haircut! I definitely agree- gotta be willing to put in the work.
Definitely gotta put in the work...to make them work!
Great to see videos about the precautions of getting "luxury" travel cards!
😁👍
Thanks for the informative video! Very valid points!
💯👍
Great video! Thank you for all the info!
You're welcome!
Great content per usual! As much as I was eyeing up the VX, I was having a hard time stomaching the $395 up front. I fly a lot so was gonna get the regular Venture with the massively elevated sign up bonus and pre check/Global Entry for a much more manageable $95 fee and product change next year. I wasn’t aware of the 1 in 6 rule though, and I opened the Saver One in May, so have to wait till Nov to apply for the Venture. I do have a lot of big purchases coming up in the next couple months which would’ve put me on track to hit a minimum spend requirement. I got the 90K AmEx Gold offer and have to decide if it’s worth it, or if I should sit tight and wait to get out of jail in November. It’d be awesome if there were more cards in the $95/yr range offering precheck. Thanks for all your top notch content!
Fun stuff to think about as the strategy develops!
Spitting the truth. Respect.
💯👊
Great video as always, Mark! Definitely an important step to know which cards are for you and which ones aren't.
Absolutely!
🎉 Wow! You're a great teacher! 🤓😎 I'm half expecting a pop quiz at the end. 😂
Thank you! No quiz 😂
If credit cards weren't a hobby of mine, I would definitely want a simpler cashback setup. The Bank of America premium rewards set up sounds great for 2.625% on everything
I totally hear you on that 😂
but then you would be leaving 3.375% on the table when you buy groceries and don't pay with the Amex BCP.
Great Video Mark!
For the reasons you mentioned, i tend to prefer low AF travel cards. The CSP & AmEx Green are my goto cards for travel.
I also learned the hard way when i tried to use 10k bonvoy pts for a quick over night stay & discovered they expired a few mths ago 🤦🏻♂️ oh well rookie mistake 😆
Some great low-fee cards out there 👍 Bummer about the point expiration, but now ya know!
Thank you for the clear list of all the transfer partners at 12:00!
You bet!
There certainly is a lot to keep track of, but the credit card game increases my Excel skills
When did credit cards become a game? Yes, I do have a card that earns me hotel points and I am mostly loyal to that chain but I am not paying big bucks for a travel card.
Haha I bet it has! 😂
My Chase UR points had a huge devaluation over the last few years because they’re tied to the US dollar at 1 cent per point 😂
😂
Agree 💯 Mark! Great video and information! 🫡
Thanks Cesar! ✈️
11:56 thank you for listing Transfer Partners
You bet 💯
Always so much value! Thank you, Mark!
You bet!
Beautifully Explained 👌
Thanks!
Good stuff to know! Great vid!
I am team cash back for now, but may get a CSP in 2025.
High spend requirements for bonus is not a problem for me cuz I already have tons of ideas for things to buy. Haha!! I’m a prepper, a musician and a home-owning family man, so I can blow a bunch of cash super fast, haha!!
Always helpful to have high natural spend when it comes to acquiring those bonuses!
OUTSTANDING video. Thank you!!!!
Thanks, glad you liked it!
not sure if this will work everywhere, or if it will continue to work in the future, but my AA miles were about to expire. I booked an award ticket, and then (due to an actual change in my work schedule) cancelled the award ticket a week later… but my 24 month clock remained reset
Interesting, thanks for sharing the data point!
Watching out for expiring points is definitely an issue. Be especially careful about saving Wyndham points. They expire after 4 years even if you have one of their credit cards. Maybe if Choice actually buys them out, that policy will change.
Yep...that Wyndham policy needs to change 👍
Part #2 Devaluations is the main reason I switched my setup to pure cashback. Travel cards are just confusing to me.
Fair enough!
Hi Mark! quick question, do you use a teleprompter? Asking because I'm making some youtube videos and you speak so flawlessly haha.
I don't.
@@MarkReese Thank you for the response!
Mark, do you have a video or recommendation for the best no AF "travel" card? I only book flights or hotels once every year or every other year, so an AF card doesn't make sense for me.
Im currently using a 3% cash back card for travel purchaces. Is there something out there that might be better?
Cash back likely makes the most sense in this case. I'd look into the Wells Fargo Autograph Card if that's not the one you already have.
@@MarkReese thanks! I'm using the Costco anywhere Visa. I'll look into the Autograph.
@@johnt6806 - The Costco Anywhere Visa is a great choice, too. The WF Autograph just covers additional categories like Transit.
I'm also a fan of the Citi Custom Cash, which earns 5% on the 1 category in which you spent the most each billing cycle (meaning it adapts to your biggest spend category from a preset list of options, so it's highly flexible).
You can check out both of the cards on my Top Cards page here: markscreditcards.com/topcards
I also own both, so I can answer any additional questions you may have.
Can you do a review on the best Credit Union Cards on the market?
Probably not.
Hey mark random question but know you will have the answer. I just g😢approved for a chase bonvoy card i already have a sapphire I’m trying to pay off by closing dates on all my cards . Will chase report on both my cards the same day even though they were obtained on different dates?
I don't have a way to know that. Each card has its own billing cycle / report dates. It's possible that both cards could have gotten the same dates, but you won't know for sure until you get your first statement (or you call Chase & ask them directly, which you could do today).
Hey Mark. I have been watching your videos a lot for all credit cards. I currently have 9 personal credit cards with high annual fees with Amex, Chase, Capital One, US bank, and Citi. My question is if I want to add another hotel or airline card, will the bank offer me a high credit limit? Most of my card limits are around $50k limit. Let me know your thoughts. Thanks
Thanks for the support, Michael! There isn't a way for me to predict credit limits, so I cannot answer that.
Thank you
Hey Mark! What do you think will happen once points/miles are devalued to the point where they become almost worthless? Would credit card issuers up the earnings (most likely not)? Would the entire system change? Just curious on your opinion!
If points have little to no value, then there's no point in a rewards program.
Employee: "Want to sign up for our ice cream loyalty program?"
Consumer: "What do I get?"
Employee: "You'll get a free scoop after your 1 millionth visit!"
Consumer: "So if I buy ice cream every day, then I'd earn a free scoop after 2,740 years. No thanks...I'll pass."
I feel like earning rates have generally increased over the years, so I wouldn't be too surprised to see more of that. Unfortunately, a lot of issuers seem to see 5x as a glass ceiling at the moment where they can't give beyond for general spend but hopefully we get more cards earning beyond that (there are a few now). Other than that, I could see benefits and partnerships with other companies like CSR and Lyft getting more common as well since it seems to benefit both sides. Just some thoughts.
@@ThePerfectElement555 - Good points above. I bet we’ll continue seeing higher earn rates from travel cards when booking via their portals. We’re already seeing that with the Chase Sapphire Reserve and Capital One Venture X among others 👍
Definitely have to make sure that you’ll be able to use all the perks that come with travel cards before you apply for one!
Absolutely 👍
Everyone can use the perks just have to rework your priorities
Hey Mark. Im looking to getting a new credit card. Im in between the amex surpass and amex gold or marriott brilliant. Surpass is like a workhorse card with the benefits. Im booking a cruise soon want to get some points. What do you recommend. Im over 5/24
What are you trying to achieve by getting a new card?
A little bit of everything but mostly hotel nights for free travel
@@christopherdeboer7180 - I would avoid the Gold Card if the goal is to redeem for hotel nights.
(1) Would you spend $15K on the HH Surpass to earn the free night award? (2) Are you able to use the $300 dining credit on the Bonvoy Brilliant?
@@MarkReese absolutely! To both! Next year planning europe cruise we need airfare. About 2 a month eat out the rest. Home meals. And we have a trip to Puerto Rico this year.
@@christopherdeboer7180 - Why not both hotel cards? 😃 They both have elevated offers right now. Consider the HH Surpass first as its offer ends on 7.19.2023. The offer on the Bonvoy Brilliant ends 8.09.2023.
You could go the Bud Light route and boycott all of the travel cards until they finally give in and we, the customer, wins.
Nah 🤙
👍🏻
👍
X over Gold really ruffles my feathers, unless it was done to mark new treasure.
😂
Is Jason back in the game?
🤔
@Jason Kazama so you still are in the game after all lol
@barryzedzero That sounds like a bunch of Doublethink. If you don't know what that is, read "Nineteen Eighty-Four" by George Orwell.
@@caribdude8151 i am out of the game
@barryzedzero 😱😱😱😱
I’m out of the game.
@barryzedzero 🤯🤯🤯
I heard that 3 people living in the outskirts of Wellington, NZ are recently out of the game.
@@MarkReese i’m from Texas 🤠
@@berryzedzero - Then you have 3 lost Brothers Of The Game that are a 17-hour plane flight away 🇳🇿
@@MarkReese that’s crazy
Mark, I have to be honest with you I think I've bit off a little more than I can chew with all of the chase ink sign up bonuses. I have accrued over 6 chase ink cards in the past 3 months to the point where chase has stopped offering the 0% APR for a year. I missed the memo, apparently and found myself absolutely loaded with debt (over $34k to be exact) that needs to be paid by the end of this month. I do not have the money other than about $28k in gift cards. Now I have to admit my normal spend per month is around $1k. I've just been loading up with visa/mastercard gift cards which I THOUGHT I could drop back into my bank account via money orders. Where I stand at the moment is all the money order spots have blacklisted me from getting anymore as they believe I am "suspicious" and have my name and picture on the wall to declare no service. Since I've been taking your recommendations from day 1 and I feel somewhat guilty not to involve you at this point can you please help me find the right way back? I know I don't want chase to close my accounts and blacklist me altogether for sure. Should I just transfer my points now? I have over 600k UR points I want to burn, but not sure how to get out of this pickle I find myself in. Any advice for a long time sub?
Not Mark, but heres what I would do:
1- do you have any cards that have a 0% BT offer? I get these from discover & citi all the time. If so use those to move some of that debt
2- if your credit is still solid apply for some BT 0% or personal loans to pay off that debt.
3- either cash out those UR pts or apply it towards your debt as statement credit, targeting whichever ink cards have the 0% that expires 1st.
4- start using those gifts cards for whatever you can to reduce your expenses.
5- fully realize that you violated the cardinal rule of the credit card game by spending way more than you can afford, unless you have $35k liquid cash in the bank. And don’t manufacture spend anymore! Learn your lesson & stick to the plan.
Good luck
The suggestions from doc above are sound. If I were in the same situation, my version would likely be as follows...
1. Move as much debt as possible to 0% cards. These can be cards you already have and/or new ones for which you apply. If you apply for any, be sure they offer 0% on 'balance transfers' (not just 'purchases'). If you perform balance transfers, *do not* also use those same cards for purchases as you'll likely be charged interest. Just transfer the balance & pay it down; that's the only purpose of the card(s). Note: Balance transfers often have a 3% - 5% fee, but that's way better than the 20%+ interest rates.
2. The 600K UR points will be redeemed for $6,000 cash back. This will then immediately go towards paying down the debt, esp. on a card that has a high interest rate. This 1 move alone can eliminate ~ 17% of the total debt, which is awesome. I'd do this today.
3. Use the gift cards to cover as many monthly living expenses as possible. This will free up cash flow so you can use it to pay down the debt even faster. Also consider selling any gift cards that don't have immediate utility for you (e.g. store-specific cards that you wouldn't normally shop at on a monthly basis).
4a. Use any cash reserves you have to pay down the debt. Obviously, you don't want to go down to $0 liquidity; having at least several thousand to pay bills & provide a cushion is important. However, don't be overly conservative either. The longer it takes to pay down debt, the more interest you'll have to pay, and credit card interest rates are among the highest out there.
4b. Find ways to increase income. More money in = more money to pay down the debt. Btw: Years ago I too was ~ $30K in debt. The #1 thing that helped me get out of it fastest was getting a newer higher-paying job, spending less than I made, and putting the surplus towards the debt. Your income can be your #1 debt elimination & wealth building tool, if used properly.
5. *Quote:* "Since I've been taking your recommendations from day 1..." // *Response:* No where, in any video, have I recommended (a) Spending more than you can manage or (b) Engaging in manufactured spending as a substitute for having cash.
6. Fortunately, just because all the debts are "due" within 1 month, doesn't mean they all have to be paid to $0 in 1 month. Ideally, yes they would, but if you don't have the funds, then you can use the credit cards as they were actually designed...as products of revolving debt. In other words, make at least the minimum payment on all cards by the due date, no exceptions. That's the only "requirement" to not miss an on-time payment and get hit with penalties. Naturally, you'll be charged interest on the unpaid balances. Then, wherever you can make more than the minimum payment, do it. Make the biggest payments on the cards with the highest interest rates.
7. Build a new mental framework along the way. Being a "points millionaire" is actually a real world "thousandaire" when redeemed, which is not very exciting. Real money + real assets come first.
Rinse & repeat until it's all gone.
100% of the focus from here on out = debt elimination.
There's no magic pill.
There's just a commitment & action to take.