What Is a Keeper Card?
In the world of credit cards and travel rewards, there are many rules and limitations that serve as constantly changing obstacles to cardholders and change all the time. Points and miles are devalued year after year, annual fees increase, and benefits disappear or change into perks that aren’t as usable. For instance, Citi dropped most of its trip and purchase protection benefits from ThankYou bonus earning cards like the Citi Prestige and Premier, forcing some conscious travelers to pivot to other cards that offered better policies. Lots of cardholders are downgrading their Chase Sapphire Reserve to no-annual fee cards like the Freedom and Freedom Unlimited because the new $550 fee doesn’t make sense for some people. On top of these changes, you can only be approved for so many cards within a certain period of time based on issuer policies, such as Chase’s 5/24 rule and American Express’s 5 credit card limit. It’s more crucial than ever to be selective when applying for the right credit or charge cards; when building your portfolio, it’s optimal to focus on keeper cards that retain great benefits and perks over time, assess the value they have on your lifestyle, and are worth paying their annual fees if any.
A keeper card should permanently deserve a spot in your wallet due to its great benefits and overall value to your lifestyle.
What Is a Keeper Card?
A keeper card is a credit or charge card with valuable benefits that outweigh the overall cost of having the card. Even if you’re paying an annual fee, it provides enough quality perks, credits, and amenities that you get more in return by holding onto the card. They usually don’t have great multipliers and come with higher annual fees, but offer tons of value for specific airlines or hotel brands.
When the benefits of a card outweigh its annual fees, you’ve got a keeper!
American Express Marriott Bonvoy Brilliant - $300 Travel Credit
The Marriott Bonvoy Brilliant by American Express is a great example of a high annual fee ($450) hotel keeper card. It earns 6 points per dollar at Marriott properties, 3 points per dollar for dining and airfare, and 2 points per dollar for everything else. Marriott points are generally valued at 0.8 cents per point, so 6 points per dollar yields a decent but unremarkable 4.8% return. The main reason why the Bonvoy Brilliant is such a great keeper card is because cardmembers get $300 in annual credit to be used at Marriott hotels and resorts. It works similarly to the Chase Sapphire Reserve’s travel credit in the sense that any purchase you make at Marriott properties will apply to this, including room rates, room service, and upgrades. This credit reloads every cardmember anniversary, so if you travel at least once a year, you can easily utilize this benefit. The $300 credit effectively lowers the annual fee to a more palatable $150.
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The American Express Marriott Bonvoy Brilliant comes with an easy-to-use $300 annual credit that effectively lowers the annual fee from $450 to $150.
American Express Marriott Bonvoy Brilliant - Free Night Certificate
Another fantastic benefit to the Bonvoy Brilliant its annual free night certificate. You can use this certificate and stay at any domestic or international Marriott property worth up to 50,000 Bonvoy points per night. Similar to the $300 credit, the free night certificate is awarded every cardmember anniversary and alone can be worth far more than the remaining $150 annual fee. For example, travelers staying in New York City could use the 50,000 point free night certificate to book a king bed for one night at The Westin New York Grand Central, which costs roughly $485 including taxes and fees if purchased with cash.
Booking a room at The Westin New York Grand Central could either cost over $485 including taxes and fees...
Photo credit: www.marriott.com
…Or one free night certificate provided by your Bonvoy Brilliant with an annual fee of $450.
Photo credit: www.marriott.com
Looking for a night across the country in star-studded Los Angeles? Staying at the W Hollywood will cost you 50,000 Bonvoy points, or a cash equivalent of over $395 with taxes and fees. Again, the going rate at W Hollywood is more than double than the Bonvoy Brilliant’s effective annual fee after the $300 credit is accounted for. You might even be able to justify keeping the card for the free night certificate alone!
Booking a king bed at the W Hollywood in LA could cost over $395 for one night…
Photo credit: www.marriott.com
…Or the free night certificate provided by the Bonvoy Brilliant!
Photo credit: www.marriott.com
Citi AAdvantage Platinum Select - Baggage Fee Waiver
Citi offers American Airlines co-branded credit cards that can be great keeper options if you’re an AA loyalist or live in an American hub. The Citi AAdvantage Platinum Select World Elite Mastercard will cost you $99 annually but the fee is waived during the first cardmember year.
Airline co-branded cards can be great keeper options for those who don’t fly often or have airline statuses. Photo credit: www.citi.com
The Citi AAdvantage offers terrible multipliers of 2 miles per dollar spent on American Airlines purchases, dining, and gas, and 1 mile per dollar for everything else. However, the card provides the first checked bag free on domestic AA itineraries for you and up to 4 companions. Otherwise, American Airlines charges $25 for your first checked bag, accruing round-trip baggage fees of at least $50 for a single traveler. If you travel alone, and take more than 2 domestic trips per year with American Airlines, this card will basically pay for itself. If you have a family, significant other, or travel partner, just one domestic trip will more than justify the annual fee. Generally, most airline co-branded cards waive baggage fees to some degree, so I suggest looking into cards offered by the airline of your choice to stop paying for checked bags.
The Citi AAdvantage Platinum Select not only has an overly long name, but also offers mediocre multipliers. However, for those who do not have status with American Airlines, the baggage fee waiver easily makes up the annual fee. Photo credit: www.citi.com
Summary
Keeper cards offer great perks and benefits that outweigh their annual fees as long as they are used and taken advantage of. Their multipliers aren’t usually so great, but you can earn free night certificates for hotel stays and save on airline baggage fees to make your next trip that much more affordable. Points and miles get devalued constantly, but keeper cards and their tangible amenities generally retain their values over time. I highly recommend you prioritize adding keeper cards to your repertoire first, especially when you are under Chase’s 5/24 rule.
