Points & Miles 2025: Still Worth It for Everyone?
A State of the Union for Points & Miles — and Why It Still Works for Everyone
Twelve years ago, I was working as an elementary school teacher and running a small nonprofit. My wife and I weren’t earning a lot, and we weren’t spending a lot either. But we had big dreams — like many people do — of seeing the world, visiting family, and traveling together while we were still young.
I’ll never forget my first credit card bonus. I used it to propose to my wife in Southern France. (And thanks to several more credit cards, we returned there 15 years later.)
That single moment reshaped how I thought about travel. That insight turned into a lifelong mission—and eventually, into Travel Freely.
Because what I realized was this: even without a high income or luxury spending habits, there was a path to free travel. And hardly anyone around me seemed to know it existed.
That’s why I started Travel Freely. I wanted to share what felt like a secret with everyday, busy people I knew — teachers, parents, nonprofit workers, friends, and family— who could achieve their travel dreams with their regular monthly spending.
One important point is that the largest annual fee on any of my cards was $95. That fee was hard to accept at first, but easily justifiable once I realized all that came with it. Still, it was hard to convince people to get a $95 annual fee card.
And now, in 2025, points and miles have gone fully mainstream. And everyday, busy people are getting cards with $795 annual fees! Holy cow! But the question I’ve been asking lately — and what this post is really about — is this:
What’s happening in this space right now?
Are we in the middle of a revolution, a revelation, or an evolution? Is there still a future for those of us who don’t love the super high annual fee cards?
Let’s explore those possibilities.
A Revolution: Are High Annual Fees the New Normal?
In recent months, we’ve seen 4 major cards with annual fees of $695 or higher getting significant attention. These cards come loaded with luxury perks, lounge access, statement credits, and elite benefits. For some travelers, these perks can offer great value.
But these cards are not for everyone. The benefits often require extra effort to activate and use—from enrolling in offers to remembering to book through special portals and even some that expire on a monthly or semi-annual basis. It can start to feel like a coupon book you need to redeem just to break even.
Banks aren’t making these changes by accident. They’re increasing fees while layering on benefits because they know people are interested in premium benefits. For the right user, it can be a win-win. But for many, it may not be worth the cost.
What’s really happening in my opinion is a larger focus by the banks on ultra premium cards and marketing heavily towards that interested audience. The great news is that all the other cards with low or no annual fees still exist! And many have the best offers they’ve ever had.
So, no, it’s not a revolution. It’s a new era with additional options on ultra-premium cards.
A Revelation: People Are Finally Using Their Points Wisely
This might be my favorite part of what’s happening right now: the everyday traveler is waking up. And the everyday points and miles person is much savvier.
Just 4 or 5 years ago, most people had no idea how many points they had. They weren’t earning with intention. They weren’t maximizing redemptions. Many points and miles went unused. Long gone are the days when a person picks out a 5-year-old product from a miles catalog for the worst redemption rate possible.
That worked out great for the banks. Points were issued, but rarely cashed in for high-value rewards.
Now, with better tools and more accessible education, travelers are smarter. They’re planning trips, using transfer partners, and unlocking real value. And I think the banks love that, too. It’s a win-win. The more popular and effective rewards are, the more brand loyalty and business they can get.
Banks have definitely improved their rewards programs, but I also think bloggers and social media have done a great service to teach the do’s and don’t’s—such as the Top 10 Rewards Travel Mistakes that Beginners Make. Shout out to Boarding Area bloggers with blogs like Frequent Miler who were the OG’s in this space to teach newbies like me. And those original influencers became influencers of influencers!
The main point is: This is no longer for expert bloggers or people with 10,000 hours to learn. It’s everyday, busy people who are becoming so savvy. It’s parents going to Disney, couples visiting Europe, retirees seeing family. And it’s younger generations, too—especially Gen Z—wanting to go explore the world. They’re more savvy about credit scores and rewards than any generation before them. I think Gen Z is fueling demand for premium cards because they see the potential value—and they know how to maximize it. And not to psycho-analyze too much, but I think Gen Z has a deep desire to feel special and seek authentic, unique experiences. After growing up in a more cookie-cutter world where everyone is told to be the same, they are up for access to special events, perks, etc. This plays out specifically in the context of travel. They truly desire amazing adventures and want to explore cultures all around the world. Plus, they probably have more FOMO than ever about their travel bucket list because of going through a pandemic shutdown. So, banks are marketing and inspiring towards those aspirations and hopes with big promises and a big price tag.
That’s the revelation: Banks realize people are traveling better, and more intentionally, using the same system that was once hidden in plain sight. They have improved the rewards programs, and a new generation is now ready to explore.
It’s beautiful to see as long as people can pay their bills on time and take advantage of all the perks and benefits at whatever level annual fee they are comfortable with. I think travel is one of the most important things we can do. So, this is a welcome era of revelation.
But there’s a ripple effect: the more people redeem points well, the more it costs banks and loyalty programs. And so… the industry is adapting.
An Evolution: More Balance and More Opportunity
So where does that leave us?
I see all of this as a healthy and exciting evolution — maybe even the best moment we’ve ever seen for points and miles.
Banks and loyalty programs are adjusting. Some fees are increasing. New perks are being added. Offer structures are shifting. But the foundation remains steady, which includes really amazing welcome offers and great first-year value for new cardholders.
But here’s what matters: the foundation of points and miles strategy is still the same. If you can be a little bit smarter than the average person, you are going to be light years ahead of everyone else. If the banks start profiting more on these higher annual fees, then the smarter travelers could be poised for even better offers in the future.
Yes, you’re seeing more luxury-focused cards in your feed. Yes, the big blogs may be pushing high-fee cards more than ever. But beneath that noise, there are still incredible no-fee and low-fee cards. Still generous welcome bonuses. Still smart, ethical ways for busy people with normal incomes to win big time with their regular monthly spending.
Look around next time you travel. From the airport to the plane to the hotel, you’re surrounded by credit card ads. Banks and travel companies want you as a customer more than ever. You’ll see banners and flyers at check-in, hear offers from flight attendants, see ads during your inflight entertainment, and even spot cards promoted inside lounges. Why? Because points and miles have become one of the most valuable and competitive tools in travel — for them and for us. I even saw an American Express Delta ad in French at the Paris airport!
In fact, in some ways, this is a sign that all is alive and well for us. It’s working so well that the banks are doing some rebalancing.
So What Does This Mean for You?
Here’s what I want you to take away:
If you’re feeling unsure about all the big annual fee cards: don’t worry.
This isn’t a threat to your strategy — it’s proof that savvy points and miles strategy works.
There are more cards than ever. Welcome bonuses and benefits have never been stronger. Banks and airlines are doubling down because they know customers love this. That’s great news for smart, organized travelers like you.
You don’t need to chase every $700+ annual fee card or follow the loudest voices in your feed. You just need the right plan — and someone on your side to help you stick with it. If you are intrigued by one of them, then most of these have a great first-year value after you add up the value of the welcome offer and benefits. Give it a year and think hard when your renewal comes up.
At its core, banks work on averages. So as long as you’re smarter and more intentional than the average traveler, you can win — again and again.
That’s where Travel Freely members thrive. You’re more intentional. You know how to spot value. You’re building toward your travel goals one smart step at a time.
And the best part? The fundamentals still work beautifully. Get the next best card for you, earn a bonus, and take your dream trip. You don’t need to spend hours figuring it out anymore.
I didn’t start this journey as a finance expert. I was a teacher who used his first bonus to propose — and I still believe what I believed back then:
Free travel isn’t just for influencers or insiders. It’s for regular people—like you and me—who want to see the world without breaking the bank.
Sincerely,
Zac
p.s. Many of you are asking about what the best cards are at these different annual fee levels. So I’m going to share a short list below by annual fee…
Top high annual fee options ($695 or more):
An ultra-premium card loaded with benefits and perks, especially for the frequent traveler. Terms apply.
Brand New Business Card! Great choice for business owners with high spend, but note the large annual fee. If you're starting out or not going to travel frequently in the coming year, you might want to instead consider one of the Ink Business cards instead.
New Offer! Elevated offer on a completely refreshed card loaded with perks and benefits. Note the large annual fee.
Top mid-level annual fee options ($325 – $395):
Great "ultra-premium" card. Despite the big annual fee, the overall first year value is worth it for most people. This is due to the large signup bonus, extra benefits like Priority Pass™ (after enrollment), up to $300 annual travel credit and Global Entry/TSA PreCheck credit.
A must-have for anyone who loves Amex Points. Some of the highest returns for spending at U.S. supermarkets and restaurants worldwide (plus takeout and delivery in the U.S). Definitely worth a spot in your wallet.
Terms apply.
Top “low” annual fee options (under $100):
Our #1 recommended personal card. Hands down the single best “starter card” for beginners and the MVP card for free travel. Note: New application rules as of June 2025 may affect your eligibility—click to learn more before applying.
One of the very best business cards. A highly recommended business card for an incredible signup bonus and 3X categories.
Best "easy to use" starter card (or complement to the Chase Sapphire Preferred® Credit Card) for those who don't want to think when it comes to earning and redeeming miles.
Top $0 annual fee options:
Great signup bonus for a business card with no annual fee, now with an extended timeline for hitting the spend requirement. Great for carrying a balance. 5x earning categories, and if paired with a premier Chase credit card (one that carries an annual fee), your points are worth even more.
A no-brainer, great business card. Your choice to receive 1.5% cash back or 1.5x points.
