7 credit card perks to prioritize in 2021
As you lay the groundwork for 2021 financial resolutions, take inventory of your credit cards to see if they’re still in line with your goals and priorities.
With the pandemic upending spending patterns, possibly for the foreseeable future, an audit of the benefits and costs of your cards can reveal which ones are getting the job done and saving you money, which ones are a drag on your finances — and what features you might want to look for in a new card. Here are some credit card features to prioritize.
1. A JUSTIFIABLE ANNUAL FEE
An annual fee is worth paying on a credit card only if the rewards and perks more than offset the cost. For Sahirenys Pierce, a California-based content creator at the Poised lifestyle blog, the benefits far outweigh her cash-back credit card’s $95 annual fee. “We had an extra $500 for our Christmas gifts” last year thanks to the cash back she earned, she said.
By contrast, a card whose value comes in the form of airline miles or travel perks might not come close to paying for itself if you’ve stopped traveling.
If the card’s incentives aren’t making up for the fee, ask your issuer about downgrading your account to a card with no annual fee. It’s better than closing the account because your original line of credit remains open, which can benefit your credit scores.
2. REWARDS SUITED FOR THE TIMES
The incentives on many credit cards don’t necessarily match the shifts in spending that accompanied the pandemic. Bonus points on travel, for example, became less valuable than higher rewards on groceries, streaming services and restaurant takeout and delivery.
“I haven’t taken out my American Airlines Citi card for a long time because earning the points is really a different proposition right now, and that’s a top level...
