I've heard a lot about reward points, and owned a card that gave them out but to be honest I much prefer cashback over reward points schemes. The rates are lower, but you can spend it anywhere and don't have to worry about losing the points you've built up if the scheme is discontinued.

To maximize rewards you may want to research the credit card market to find the cards that best fit your family purchase requirements and then use the cards regularly to maximize your rewards. Others can give you recommendations but the best idea is to research and select cards that most closely mirror your purchase needs. You may have a travel card for your travel, a card for grocery and gas, a card that focuses on warehouse/discount stores, and you would want to consider points or cash. Oh, don't forget category cards that give additional rewards by categories at certain times of the year. For those that like simplicity a more general card may work such as the Citi Double Cash Master Card that ends up giving you 2% on all your purchases or the Chase Freedom Unlimited Visa for 1.5% or the Capital One Quick Silver Visa or Master Card and I can go on ... Another item to be aware of is redeeming rewards as not all rewards redeem for at least a 1:1 ratio. You say what a game ... you got that right and the card issuers change up the rewards on their own cards to keep you confused. Truth, it can be frustrating. Back to rewards redemption, Sam's Club and maybe Walmart along with Costco have redemption on an annual basis so you go a full year to redeem your rewards ... read the fine print. Wish you luck, I culled my herd of cards and focus on cash and not complicated because I have such a small spend it doesn't pay to chase all the options but that is why there is a card for every person and their needs!

FrugalFran wrote: And in that case, it's possible to offset the $195 by using it to gain maximum rewards, correct? I agree with you, Frank, that rewards cards are the way to go, but I think I could be doing more to take advantage of them and I want to rectify that very soon.

I agree with you there, FrugalFran. I know that I could be doing so much more to take advantage of the rewards system on my cards, but I really don't know where to start. It seems like to get a decent amount of points you need to be charging everything that you do. Is this the way that most people do it?

Yes, in this example the $195 would be worth it if you used a companion ticket that would have cost more than $195. Or if you received enough bonus miles that it would be worth more than the $195.

FrankN wrote: And one positive thing I heard about the $495 annual fee is you get $300 in travel credit. I need to look more into what the travel credit includes, but if you travel every year, then the fee looks like it only be $195.

And in that case, it's possible to offset the $195 by using it to gain maximum rewards, correct? I agree with you, Frank, that rewards cards are the way to go, but I think I could be doing more to take advantage of them and I want to rectify that very soon.

I 100% think reward cards are truly worth it. If I must spend the money (whatever it may be), I might as well get some perks and reward back no matter how small.

The skeptic in me wonders what was raised in order for them to "give away" money in this fashion. It might be a legitimate "gimme", but I doubt it.

In your opinion, do you feel that rewards cards are truly worth it? I have always thought that the idea of getting something back is a good thing, especially since you are spending your money anyway. On the other hand, I have also talked to people who felt it was a waste, with too many rules and exceptions, especially in the case of airline points.

And one positive thing I heard about the $495 annual fee is you get $300 in travel credit. I need to look more into what the travel credit includes, but if you travel every year, then the fee looks like it only be $195.

Seems to me if you spend $4,000 in the first three months of obtaining the Chase Sapphire Reserve Visa Infinite you earn 100,000 Ultimate Rewards (UR) points which is quite a score! The other earnings is 3 points for every dollar spent on restaurants with everything else 1 point. Note, there are many extras with the card and it is aimed at travelers not everyday users. If you have a Chase Freedom or other UR points earning cards you can leverage partners with UR points with UR points transfers earning more points depending on the partner transfer requirements. Again the fee is $495 annually and is not for the faint of heart. Take a serious look at the card product on the Chase website and read all the information before signing up.

FrankN wrote: The only time I have seen an annual fee that high worth it is if you are married and you get a companion ticket every year. I have the business amex that has a $195 fee, but I fly atleast once a year so the companion ticket pays for itself every year. Otherwise I would never pay a fee that high.

Well, this changes things for me. I wasn't aware of a companion ticket reward and we do travel every year, so it just might make sense. Is there a minimum amount that has to be charged in order to benefit from this?

I am looking at the Chase Sapphire Reserve Infinite right now. The bonus is great and you get a $300 travel credit every year. I travel a lot so in reality to me the fee is actually going to be $195 per year. I just want to make sure I am going to get more than $195 in rewards every year.

Annual fees up to $495 are pretty common on the upscale hotel and travel cards. Look at AX Platinum or the Chase Sapphire Reserve Infinite Visa at $495 or the Chase Ritz Infinite VIsa.

The only time I have seen an annual fee that high worth it is if you are married and you get a companion ticket every year. I have the business amex that has a $195 fee, but I fly atleast once a year so the companion ticket pays for itself every year. Otherwise I would never pay a fee that high.

I just got an AmEx offer in the mail and the annual fee was $195, so I scrapped it. That's just way too high for me to justify taking on another card, even with the rewards taken into consideration.