The illusion (why “free points” aren’t free) Rewards feel like free money. In reality, red tape, devaluations, and “earn-more-to-save-more” nudges push you to overspend for perks that move under your feet. In 2024 the CFPB flagged four recurring pain points—hidden...
The give-and-take (how premium cards actually work) Premium cards are a trade: issuers “give” perks (lounges, credits, partners), and you “give back” via the annual fee and your spending. When the cost of giving perks rises—lounge contracts, new platforms, richer...
The short answer Premium perks got expensive (lounges, partner reimbursements, richer credits), the “perk arms race” escalated, inflation raised every input cost, and enough cardholders happily pay for status and convenience to make higher annual fees stick. Result: headline prices...
I. The $900 Question Let’s be honest: most middle-class Americans can’t wrap their heads around paying $795 to $895 a year just to own a credit card. That’s a car payment—or at least two weeks of groceries. Yet tens of...