Top Travel Card Mistake Beginners Make, Per The Points Guy
Brian Kelly of The Points Guy reveals the single biggest error new travel card holders make — and how to fix it fast.
You signed up for a travel credit card, paid the annual fee, and now you're leaving hundreds of dollars on the table. Sound familiar? Brian Kelly, founder of The Points Guy, says this is the No. 1 mistake beginners make — and it's costing you more than you think, especially with travel costs still elevated.
The core problem is simple: most new cardholders obsess over earning points but completely ignore how to redeem them. Kelly calls this a fatal flaw. Accumulating miles means nothing if you're cashing them in for gift cards or statement credits at rock-bottom value. The real leverage is in travel redemptions, where your points can punch well above their face value.
Read more Build a TIPS Ladder for Guaranteed Retirement Income, Zero Commissions →
Annual fees are the other landmine. Beginners often panic at a $95 — or even $695 — annual fee and bail before they've captured enough benefits to offset the cost. Kelly's take is straightforward: if you're not extracting at least the equivalent of the annual fee in perks, lounge access, credits, or rewards, you picked the wrong card or you're using it wrong. Either way, that's on you to fix.
The antidote is intentional strategy. Map out the card's credits before your renewal date hits. Use the travel portal. Book through transfer partners. Stack benefits. Rising airfare and hotel rates actually make this easier — your points go further when base prices are high, which means disciplined redemption now delivers outsized returns compared to even two years ago.
Bottom line: stop treating your travel card like a debit card with perks. It's a financial instrument. Use it like one. Continue reading at MarketWatch.com
