Top Travel Card Mistake Beginners Make, Per The Points Guy
Brian Kelly of The Points Guy warns new cardholders about a critical error with travel rewards cards that costs them real money.
New travel credit card holders frequently leave significant value on the table by misunderstanding how rewards programs work, according to Brian Kelly, founder of The Points Guy, who shared his insights with MarketWatch on navigating annual fees and point redemptions amid rising travel costs.
Kelly's central warning targets beginners who focus too heavily on a card's annual fee without weighing it against the benefits that can offset or exceed that cost. A card charging $500 per year may deliver far more in travel credits, lounge access, and bonus points than a no-fee alternative — but only if the cardholder actively uses those perks, a step many newcomers skip entirely.
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On the redemption side, Kelly emphasized that how cardholders use their accumulated points matters as much as how they earn them. Cashing out rewards for statement credits or gift cards — common beginner moves — typically yields a fraction of the value that transferring points to airline and hotel partners can unlock, sometimes by a factor of two or more depending on the route or property.
The timing is notable. With airfare, hotel rates, and overall travel expenses remaining elevated compared to pre-pandemic benchmarks, the margin between savvy and careless rewards management has widened. Consumers who understand the mechanics of transfer partners and redemption tiers stand to recoup a meaningful portion of those higher costs, while those who don't may effectively pay a premium for a product they underutilize.
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