Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more
Welcome to the Points Pro, where I answer your credit card and travel rewards questions.
In lieu of answering one of your questions this week, I'm taking a look at common credit card mistakes, which was the most-requested topic in our recent poll. Follow CNBC Select on LinkedIn to be the first to know when the next poll goes live.
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Earn a one-time bonus of 75,000 miles
Terms apply.
Earn a bonus of 20,000 miles once you spend $500 on purchases within three months from account opening, equal to $200 in travel
$0
Credit card rewards mistakes
Not starting with why or where
Before you open a credit card or start amassing points, it's important to ask yourself why. What is the reason you want the rewards? Where do you want to go? What do you want to buy?
When you earn rewards without a plan, it can be more difficult to maximize the points for what you want. For example, American Express Membership Rewards® points are a great option for booking international flights, but subpar for cash back or merchandise. The American Express Platinum Card® offers a potentially huge welcome bonus that's as high as 175,000 points after spending $12,000 on eligible purchases in the first six months of card membership. It's possible to use those points to book $3,000 in award flights, even after factoring in award taxes and fees.
However, if you want to cover Christmas gifts, Amex points are only worth 0.6 cents as a statement credit, making the Amex Platinum's intro offer worth up to $1,050 in statement credits. You can squeeze a bit more value from Amex points with retailer or gift card redemptions (typically worth 0.7 to 1 cent per point), but it's a dramatic drop in value and the best options are limited.
The American Express Platinum Card® is a premium card loaded with annual statement credits, entertainment benefits, extensive airport lounge access, elite status perks and more. (Enrollment required for select benefits mentioned)
- Access to 1,550+ airport lounges, including Priority Pass™ lounges (enrollment required) and Amex Centurion lounges
- Statement credit offers worth up to twice what the annual fee costs
- Elite status perks for hotels and rental cars (Enrollment required for select benefits mentioned)
- High annual fee
- Many statement credit offers are complicated and are earned in increments or limited to specific purchases
- Not as rewarding for purchases as other lower-fee travel cards
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- You may be eligible for as high as 175,000 Membership Rewards® points after you spend $12,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount – all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.
- Get more for your travels with 5X Membership Rewards® points on all flights and prepaid hotel bookings through American Express Travel®, including Fine Hotels + Resorts® and The Hotel Collection bookings. You earn 5X points on flights purchased directly from airlines or through American Express Travel® on up to $500,000 on these purchases per calendar year.
- With over 1,550 airport lounges - more than any other credit card company on the market* - enjoy the benefits of the Global Lounge Collection, over $850 of annual value, with access to Centurion Lounges, 10 Delta Sky Club visits (subject to visit limitations) when flying on an eligible Delta flight, Priority Pass™ membership (enrollment required), and other select partner lounges. *As of 01/2026
- $200 Uber Cash + $120 Uber One Credit: With the Platinum Card® you can receive $15 in Uber Cash each month plus a bonus $20 in December when you add your Platinum Card® to your Uber account to use on rides and orders in the U.S when you select an Amex Card for your transaction. Plus, when you use the Platinum Card® to pay for an auto-renewing Uber One membership, you can get up to $120 in statement credits each calendar year. Terms apply.
- $300 Digital Entertainment Credit: Experience the latest shows, news and recipes. Get up to $25 in statement credits each month when you use your Platinum Card® for eligible purchases on Disney+, a Disney+ bundle, ESPN streaming services, Hulu, The New York Times, Paramount+, Peacock, The Wall Street Journal, YouTube Premium, and YouTube TV when you purchase directly from one or more of the providers. Enrollment required.
- $600 Hotel Credit: Get up to $300 in statement credits semi-annually on prepaid Fine Hotels + Resorts® or The Hotel Collection* bookings through American Express Travel® using the Platinum Card®. *The Hotel Collection requires a minimum two-night stay.
- $400 Resy Credit + Platinum Nights™ by Resy: Get up to $100 in statement credits each quarter when you use the Platinum Card® to pay for eligible purchases with Resy, including dining purchases at over 10,000 qualifying U.S. Resy restaurants. Enrollment required. As a Platinum Card® Member you have special access to reservations on select nights at participating sought after Resy restaurants in select cities through Platinum Nights™ by Resy. Simply add your Platinum Card® to your Resy profile to book your reservation.
- $219 CLEAR+ Credit: CLEAR+ helps get you to your gate faster by using your face to verify you are you at 55+ airports nationwide. You can cover the cost of a CLEAR+ Membership* with up to $219 in statement credits per calendar year after you pay for CLEAR+ with your Platinum Card®. *Excluding any applicable taxes and fees. Subject to auto-renewal.
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees, such as checked bags and in-flight refreshments, are charged by the airline to the Platinum Card® Account. American Express relies on airlines to submit the correct information on airline transactions to identify incidental fee purchases. If you do not see a credit for a qualifying incidental purchase on your eligible Card after 8 weeks, simply call the number on the back of your Card. Qualifying airlines are subject to change. See terms & conditions for more details.
- Start your vacation sooner and keep it going longer. When you book Fine Hotels + Resorts® through American Express Travel®, enjoy noon check-in, when available, and guaranteed 4PM late check-out.
- $300 lululemon Credit: Enjoy up to $75 in statement credits each quarter when you use the Platinum Card® for eligible purchases at U.S. lululemon retail stores (excluding outlets) and lululemon.com. That's up to $300 in statement credits each calendar year. Enrollment required.
- $155 Walmart+ Credit: Get up to a $12.95* statement credit back each month after you pay for a monthly Walmart+ membership (subject to auto-renewal) with your Platinum Card®. *Up to $12.95 plus applicable taxes on one membership fee.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- $895 annual fee.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
N/A
Foreign transaction fee
None
The more specific you are with your wants, the better. Having a goal to earn points to visit Morocco or take a ski trip to the Alps is likely to be more helpful than blindly amassing rewards for an overseas trip or an all-inclusive resort.
Hoarding rewards
Even when your points balance isn't dropping, the value of your rewards and what you can do with them can change behind the scenes. This problem is closely tied to knowing why you want rewards. If you know what you want to do with your points, you're less likely to sit on them for longer than is optimal.
Credit card and travel rewards are subject to inflation just like the dollars in your bank account. Hotel and airline loyalty programs regularly change redemption rules and increase reward prices. Further, bank rewards programs can lower transfer ratios, change transfer partners or restrict points sharing — all of which limit what you can do with your points.
Not reviewing annual fees yearly
Annual fees can cost over $500 for luxury credit cards, and if you're not paying attention, even smaller fees can secretly eat away at your rewards.
Say you have a rewards credit card with a $95 annual fee and it earns 3% back on your favorite categories: gas, groceries and restaurants. You could have a credit card with no annual fee that earns 2% back on every purchase, like the Citi Double Cash® Card. But you love earning those extra rewards and automatically pay the annual fee each year without thinking about it.
What makes the Citi Double Cash® Card special is that it sits near the top of its class in several categories. It is an excellent option if you want flat-rate rewards, a balance transfer intro-APR or no annual fee.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- Earns transferable rewards
- No annual fee
- It has a foreign transaction fee
- Intro APR only applies to balance transfer
- Points transfer ratios are reduced compared to premium cards
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.24% - 28.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
Earning 1% more in your favorite categories is nice, but you have to spend $9,500 each year in those categories just to earn back the $95 annual fee (compared to earning 2% back with no annual fee). The card could have other benefits you value at $95 or more, but it's good to review what you're getting with your card every year. Benefits change, and life priorities shift, so what you highly valued last year may be less useful next year.
If you find your card or cards aren't as valuable as they once were, or you're the type of person who isn't going to bother revisiting your annual fees every year, then stick with a no-annual-fee credit card that earns 2X points or 2% cash back everywhere (unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases).
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