Case study: How Alex avoided annual fees
Alex currently pays an annual fee of $195 for her platinum rewards credit card. While she earns 2 points per $1 spent on the card, she only spends about $12,000 per year. This is just enough points for a $240 redemption value, meaning Alex earns $45 in value ($240 – $195 = $45).
By switching to a no annual fee rewards credit card with a 1.5x points rewards rate, Alex can get a $180 in redemption value, or $135 more than when she paid an annual fee.