Vivian Tu's guide to deciding which credit cards to keep, which to downgrade, and how to get real value from your credit card points.
Have you ever looked at your credit card statement and thought, Why am I paying this annual fee again? What is it getting me?
In this week’s HerMoney Podcast mailbag, Jean Chatzky sits down with personal finance expert Vivian Tu to tackle the questions listeners are really asking about credit cards: How many is too many? Are premium travel cards actually worth hundreds of dollars a year? And what do you do when a card that once made sense no longer fits your life?
From evaluating whether those flashy perks justify the fee, to figuring out the smartest way to use credit card points — without turning it into a second job — this conversation is all about making intentional, informed choices with the cards in your wallet.
Are Premium Credit Cards Really Worth the Annual Fee?
Jean Chatzky: I have been wondering about the high-tier travel cards: the Amex Platinum, Chase Sapphire Reserve, Capital One Prestige, and Venture X. Are they worth the cost? How do you figure out if you’re getting the value to actually justify it?
Vivian Tu: I think it’s all about whether you are absolutely exploiting the benefits. I would actually go through the intro document or even just the website. Go through the website, see what the benefits are, and ask yourself, do I get X, Y, Z dollar amount?
I think it’s about $795, $695, or $395 for some of the cards you listed, and I assign a value to each item. Ask yourself: how many times a year do I use these things, and does that make up for the fee?
Airline Cards vs. Flexible Credit Card Points: Which Is Better?
Jean Chatzky: I have just gone all in on American Airlines. I have the business credit card, and in part that’s because when you fly out of Philadelphia, which is where I live, if you’re not on American Airlines, it’s a weird day in February. And so for me, that has made the most sense.
Vivian Tu: I think it really depends, if you know you’re flying out of a specific hub constantly. There are definitely hubs for these airlines, but I would say that, based on your flight patterns, you can make a smart decision about whether to get an airline credit card versus a more overarching program.
I don’t have a specific airline loyalty card because I have status on every single airline. It doesn’t really do anything for me, and I am flying all over, going to multiple locations, especially for work. But if I had a more traditional job, where I had one place I lived and a job site I went to constantly, I would definitely recommend figuring out which airline would become my default.
Vivian Tu’s Bottom Line: Fewer Cards, More Intention
When it comes to credit cards, more isn’t always better, and Vivian Tu suggests most people do best with three to five credit cards. That’s typically enough to build a strong credit history, earn meaningful rewards, and keep your utilization low, without turning managing your wallet into a part-time job.
Every card in your wallet should earn its spot by doing something specific for you: covering everyday spending, supporting how you travel, or offering protections you’d otherwise pay for out of pocket. If a card no longer fits your life — maybe you don’t fly that airline anymore, or you’ve stopped using the benefits — it’s a signal to reassess.
MORE ON HERMONEY:
- How To Choose A Good First Credit Card
- A Week In Her Wallet: A 41-Year-Old Teacher Who Pays Off Her Credit Card Daily
- Are Travel Rewards Credit Cards Really Worth Having?
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