The Biggest Beginner Mistake With Travel Credit Cards
The Points Guy's Brian Kelly breaks down the most common travel card error beginners make and how to fix it fast.
You got a travel card. You're excited. And you're already screwing it up — at least according to Brian Kelly, founder of The Points Guy, who sat down with MarketWatch to deliver a blunt crash course on how most beginners leave serious value on the table.
The number-one mistake? Fixating on the annual fee instead of the redemption value. Kelly's point is simple: a card charging $500 a year can easily return $1,000-plus in travel value if you actually use the perks. Beginners see the fee and panic. Veterans see the fee and do the math. There's a big difference between those two mindsets — and it shows up in your bank account.
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Kelly also hammered the redemption side of the equation. Earning points is only half the game. Where most newcomers fumble is cashing those points in for cash back or gift cards instead of flights and hotels, where the redemption rate can be two to five times higher. You're essentially trading a first-class ticket for a Starbucks gift card. Don't do that.
With travel costs still running hot — airfare, hotel rates, and rental cars remain elevated compared to pre-pandemic norms — getting your points strategy right isn't a nice-to-have anymore. It's a legitimate hedge against inflation. Kelly's core message is that the right travel card, used correctly, is one of the few tools available to everyday consumers that can actually offset rising costs without cutting trips.
Bottom line: stop treating your annual fee like a bill and start treating it like an investment. Run the numbers, use the credits, and redeem smart. Continue reading at MarketWatch.com.
