Amex Fee Increases: Time to Re-Evaluate?

American Express recently announced annual fee increases on some of their cards. As RewardSmart users know, it's crucial to continually assess whether a card's benefits justify its cost. Don't panic, though! This is an opportunity to optimize your card portfolio.

  • Analyze Your Spending: Review your past year's statements. Did you fully utilize the card's perks, such as travel credits, airline lounge access, or statement credits? If not, the fee increase might make the card less valuable.
  • Calculate the ROI: Estimate the value of the rewards you earned versus the annual fee. If you're consistently earning rewards worth significantly more than the fee (e.g., 3x or 4x), the increase might be acceptable.
  • Consider Downgrading: If the fee hike is a deal-breaker, explore downgrading to a no-annual-fee or lower-fee Amex card within the same family. You'll retain your credit history and potentially keep accumulated Membership Rewards points.

Rock On: Maximizing Rewards at Music Festivals

Music festival season is in full swing! These events present excellent opportunities to rack up rewards. Here's how:

  • Use a Bonus Category Card: Many festivals partner with vendors that code as entertainment or dining. Use a card that offers bonus rewards in these categories (e.g., 3x points on dining, 2x on entertainment).
  • Pre-Purchase Tickets: Many festivals offer early-bird ticket sales months in advance. This allows you to spread the cost over time and earn rewards sooner.
  • On-Site Spending: Utilize mobile payment options (Apple Pay, Google Pay) linked to your highest-earning rewards card for food, drinks, and merchandise purchases at the festival.
  • Leverage Travel Rewards: If you're traveling to a festival, use a travel rewards card to book flights and hotels. Consider cards with travel insurance or trip delay benefits for added protection.

Summer Travel Rethink: Adapting Your Rewards Strategy

Reports indicate that some Americans are scaling back summer travel plans. Whether it's due to inflation or other factors, this shift presents opportunities to adjust your rewards strategy.

  • Shift Focus to Everyday Spending: If you're traveling less, redirect your rewards efforts to everyday spending categories like groceries, gas, and utilities. Look for cards with bonus rewards in these areas.
  • Redeem Points for Non-Travel Options: Consider redeeming your points or miles for statement credits, gift cards, or merchandise. While travel redemptions often offer the best value, these alternatives can still provide significant savings.
  • Plan Staycations: Explore local attractions and activities. Use your rewards card for dining, entertainment, and hotel stays within your city or region. You can still enjoy a vacation experience without the cost and hassle of long-distance travel.

The Bottom Line: Stay agile with your credit card rewards strategy. Regularly evaluate your card usage, adapt to changing spending habits, and explore alternative redemption options to maximize the value you receive.