Billions of dollars in credit card rewards are going unused, but redeeming perks feels like a chore. Here’s how to get the most from your cards

Take Eric and Charlene May, a couple from Columbus, Ohio, who manage 14 premium credit cards and pay around $2,600 in annual fees. To make sure they come out ahead, they track every perk — from Uber credits to Lululemon allowances — in a color-coded spreadsheet. Their efforts have paid off: they’ve managed to squeeze about $900 more in rewards value than they spend on fees (1).

However, most cardholders lack the patience — or the spreadsheet skills — to keep up. So, are premium cards still worth it?

Are premium cards worth the cost?

Premium credit cards often come with hefty annual fees, from $395 for Capital One’s Venture X to nearly $900 for the Amex Platinum (1). While those feel like hefty prices, credit card companies often dangle perks such as:

• Dining and delivery credits: DoorDash or restaurant credits that refresh monthly or quarterly.
• Rideshare or travel credits: Monthly Uber or Lyft allowances, plus airline fee reimbursements.
• Hotel perks: Complimentary upgrades, late checkout, or annual free-night certificates.
• Companion passes: Popular with airline-branded cards like Delta’s.
• Global Entry or TSA PreCheck reimbursements: Credits to cover the cost of programs that fast-track your path through airport security
• Extra points: Multipliers for dining, groceries, or travel spending.
• Free checked bags and other flying perks: Popular with airline-branded cards. (2)
• Rental car or cell phone insurance: Some cards offer built-in insurance when you rent a car or buy expensive electronics (3).

For example, the Delta SkyMiles® Platinum American Express Card has a $350 annual fee. For that price, it comes with perks such as free bags when flying (a $50 value), a $120 rideshare credit ($10 per month), cell phone protection and an annual companion ticket, where a friend can fly with you to anywhere in the U.S., Mexico, the Caribbean or Central America for just the cost of taxes and fees (2).

Used strategically, these rewards can more than offset the annual fee. However, they only make sense if they align with your spending habits. If you rarely travel, many of the perks may not make sense for you. As rewards-tracking expert Tiffany Funk told The Wall Street Journal, cardholders often “overvalue less-quantifiable perks” and underestimate how limited many merchant credits are (1).

How to make the most of your credit card points

If you're part of the group of card users leaving money on the proverbial credit-card points table, there are steps you can take to make the most of card rewards — even without a spreadsheet obsession.

Choose your cards wisely

Don't just sign up for a credit card because the rewards sound good. Consider your typical spending habits and the rewards that are most valuable to you. If you don't travel much, for example, it may make sense to get a cash-back card rather than a travel card.

Keep track of rewards

Whether you prefer a color-coded spreadsheet like the Mays or a simple app such as AwardWallet or MaxRewards, organization is key. Note expiration dates and which purchases qualify for bonuses.

Review your perks regularly

Card issuers quietly update their terms and merchant lists on a regular basis. Set a quarterly reminder to check your benefits page and see if any new credits or bonuses have been applied. Take this opportunity to ensure you're maximizing all your reward options.

Audit your cards

If you’re paying for perks you never use — like an airline credit when you rarely fly — consider downgrading to a no-fee version or canceling after redeeming points. Just make sure you know what will happen to your points if you cancel before spending.

Know how to transfer points between systems

If you have points you’re not likely to use, don’t let them expire. Many premium cards allow you to transfer points to travel or hotel partners — for example, Chase to United or Hyatt, and Amex to Delta or Hilton. Transferring can help you combine balances for bigger redemptions, like a free flight or hotel stay. Just check the transfer ratio and rules first, since most transfers are final.

Credit card points may feel like navigating an ever-shifting labyrinth, but with a bit of organization and realistic expectations, you can turn perks into real savings. Make sure to focus on cards that match your current spending patterns—and don't get tempted into spending more just for a perk.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Wall Street Journal (1); American Express (2); Chase (3)