When it comes time to pay a credit card’s annual fee, it’s always worth reassessing the benefits to see if they still fit your lifestyle. A card that once seemed perfect might no longer make sense—maybe you’re struggling to use an annual free hotel night, or an airline has removed the route you flew most. If a card’s benefits no longer justify its cost, it might be time to let it go.
Recently, I decided to step back and evaluate all my cards at once, not just when the annual fees come due. The results were surprising—and a little overwhelming.
Taking Stock of My Cards
After reviewing our accounts, I discovered that between my wife Sharon and I, we have 41 credit cards. Even more surprising, we’re paying over $4,500 in annual fees. Premium cards like the $695 AMEX Platinum and $395 Capital One Venture X make up a big part of this total, but plenty of $95–$150 cards contribute to the pile.
While I can justify keeping many of these cards individually (as even an AMEX Centurion Lounge agent once joked about my “impressive collection”), I realized I needed to look at the big picture. My 2025 resolution is clear: cancel 25% of our annual-fee cards.
Setting the Goal
I’m not a fan of setting arbitrary goals, but committing to cutting 7 of our 28 annual-fee cards forces me to make hard decisions. Our 13 no-annual-fee cards will stay, as they cost nothing to keep and help maintain our credit scores. That leaves 28 cards in the crosshairs.
Where to Start
1. Cards Already on the Chopping Block
The easiest cuts are the cards I’ve already considered downgrading or canceling. For example, I recently downgraded the Citi Prestige to the Citi Double Cash℠. This eliminated the $495 annual fee while replacing it with a no-fee card that earns 2X points on all purchases. It’s a simple win.
Now, only six more cards to go.
2. Replacing Benefits with Other Cards
I have some cards with benefits that can be replaced with those from other cards. For example, while many airline co-branded cards include a free checked bag, I could apply airline fee credits to pay for those expenses.
- AMEX Platinum: As previously discussed, AMEX’s airline fee credits are restrictive. You must select a single airline at the start of the year, and the list of reimbursable charges is narrow. However, I can pick an airline where I’m confident we’ll use the credits.
- Ritz-Carlton Card: Offers much broader reimbursements for incidental airline fees across all carriers.
While I’ve relied on the AAdvantage Aviator Red Card for perks like free checked bags, priority boarding, and Wi-Fi credits, our reduced travel on American Airlines made this card less valuable. Using airline fee credits could easily cover those benefits, making the Aviator card unnecessary.
3. Justifying Duplicate Cards
We hold multiple cards from the same issuer, but not all duplicates are created equal.
For example, Sharon and I both have two IHG cards:
- IHG Select ($49 annual fee)
- IHG Premier ($99 annual fee)
We keep both because the free nights they provide more than justify their fees. However, there’s another reason these cards stay: Chase now restricts cardholders to only one IHG card. Since we’re grandfathered into holding both, canceling one would mean we’d lose the ability to get it again.
On the other hand, we both have JetBlue Plus Cards, which don’t offer enough unique value to justify keeping both. While the anniversary points offset much of the annual fee, “breaking even” isn’t reason enough to hold on, making it an easy candidate for cancellation.
4. Cards Kept Solely for Signup Bonuses
Some cards were added purely for their introductory offers but don’t provide long-term value. Examples include:
- Hawaiian Airlines Card: I signed up for the points I plan on transferring to Alaska Mileage Plan.
- World of Hyatt Business Card: Unlike the personal version, it doesn’t include a free night, and I’m not looking to spend my way to Hyatt status.
- Virgin Red Mastercard: I got this while considering perks with Virgin Voyages, but that’s not high on my priority list.
5. Tough Decisions
Even after canceling the obvious cards, I needed to eliminate one or two more. This meant making tough choices.
For example, I recently explained why I may part with the Chase Sapphire Reserve, a card I’ve loved for years. While its benefits are excellent, they overlap heavily with my Ritz-Carlton Card. I ultimately decided that the Chase Sapphire Preferred offers similar perks at a much lower cost.
Reaching the Goal
After some careful consideration, I’ve identified seven cards to cancel, trimming down my wallet and cutting hundreds of dollars in annual fees. This process wasn’t easy, but focusing on overlapping benefits and finding creative ways to replace lost perks made it manageable.
Final Thoughts
Credit card fees can creep up quickly, especially if you hold multiple premium cards. While it is tempting to hold onto every card for its “just in case” benefits, simplifying my collection will help me focus on the cards that truly enhance our travels.
For 2025, my resolution is clear: fewer cards, smarter spending, and less wasted money. What’s your credit card resolution for the year?
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