[00:01] with negative updates, like the increased $795 annual fee on the Chase new coupon book credits as well, along with slashed Airport Lounge access benefits on the Capital 1 Venture X and a confirmed upcoming refresh of the
[00:15] changes like these are nothing new in the world of credit cards. But when all these updates and devaluations happen in such a short period of time, the real that some people might call credit card fatigue. Basically, credit card fatigue
[00:28] value that you're getting from these cards feels like it's decreasing, while at the same time, not only is the actual cost you're paying increasing, but the you're putting into managing these cards feels like it's increasing as well. So,
[00:41] in this video, I want to address this undeniable problem that many premium explain why we're seeing all these negative changes happening. But then about how to actually fight back against these changes, as well as what I'm
[00:54] credit card strategy on sort of simplifying things while still getting maximum value back from all my spending. All right, so to start things off here, card issuers are switching things up with their most popular cards lately.
[01:06] their main reason for doing this into one word, which is profitability. from the website View from the Wing that I'll link to down below about what relaunch of the Sapphire Reserve. And in the article, what they talk about was
[01:19] successful with attracting young affluent card holders, even though the for Chase. Now, credit card issuers can sometimes strategically position certain actually lose some money in the short term while then bringing in other
[01:34] I think that after a long enough time period of a credit card losing money, to make some adjustments to go more towards the direction of profitability. about doing this to give us some clues about what's going on behind the scenes
[01:47] to talk about the three main revenue drivers for these issuers. Number one, which can include annual fees, late Number two, there's interchange, which is actually just like another fee of
[02:00] around 1 to 3% of each transaction that merchants end up paying issuers and accept credit cards. And then number three, there's interest, which is what month to month are going to end up paying for borrowing that money and then
[02:12] as many of you know if you watch my channel, that interest revenue can be off your credit card statement balance in full every single month before the about the types of people that issuers are targeting to use their top premium
[02:27] make some educated guesses about what revenue sources might not be so great. Sapphire Reserve, the Venture X, and the MX Platinum. These are all going to be higher credit scores and higher incomes on average. So, they may be more likely
[02:41] to be in the habit of paying off these specific cards in full while also having over time. That means potentially less interest revenue for the credit card companies, which again was just one of those three main sources. But that might
[02:54] and other fees is high enough. However, looking at interchange on these high-end credit card and depending on the spending multipliers it offers, issuers been paying out too much in points relative to those interchange fees,
[03:08] the long term. So, if we take a look at the Sapphire Reserve, one of the biggest Chase decided to refresh this card is that the 3x points multiplier that was travel is gone now. And instead, that was replaced with a 4x multiplier on
[03:23] I know that might sound like an upgrade on the surface to some people and I'm upgrade. But for most existing Sapphire Reserve card holders, I would say this because now they're going to be no longer able to earn 3x back on other
[03:38] areas of travel spend, including cruises, parking, tolls, trains, and a bunch of other stuff. So, by getting rid of that 3x multiplier on all travel, optimizers out there who get more value with the 4x multiplier, but Chase knows
[03:51] the general population that's still going to continue using this card for other travel stuff that now goes down to only earning 1x back. Long story short, but Chase was probably paying out too much in points across several different
[04:03] card, which was offsetting interchange revenue too much. So, by cutting back on the travel category and then sort of also shifting the card to be more of a other updates, now they're likely much better positioned to be more profitable
[04:17] then that's going to lead us to the revenue from other fees, which is the credit cards. And this whole part of the credit card business is really what's so understanding all these changes and then developing a plan to fight back against
[04:31] about in just a minute. Before we get to that though, if any of this stuff about sure you subscribe to my free newsletter called Wiser Wallet, which was that newsletter, our mission is to help people optimize their everyday finances,
[04:44] save money, and live life to the fullest through travel and experiences that fit out weekly emails with current deals on how to redeem points and miles along trending news to make you wiser about your wallet. Again, that newsletter is
[04:56] and sign up using the link down below, we're going to go and add you to our 7-day email course on points and miles 101 to say thank you. So, make sure to down below. Now, recently, the common trend on premium credit cards seems to
[05:11] be to increase annual fees roughly every four years while also adding a whole justify the higher cost. And we've really seen AMX pioneer this trend on cards with the last updates to those coming in 2021 and 2024 respectively.
[05:25] First, it obviously collects higher annual fee revenue at the start of each card holder's anniversary year. But then second, it also allows the issuer to revenue as profit. Partly because of that higher fee and partly because many
[05:39] customers are going to be from partners who then help to fund a lot of this stuff. Just look at the credits from brands like Duncan, Uber, Hulu, Sakfth MX. And then credits from brands like StubHub, Apple, Lyft, and Pelaton that
[05:53] credits could give some people out their value, but it doesn't really cost the they're basically just going to be like another form of marketing from those with these credit card issuers. Brands and issuers also know there's going to
[06:07] credits, or in other words, high levels of unused credits, which is good for the some good general travel or dining credits on certain cards, the branded trend that I think we're going to continue seeing from issuers. All right,
[06:21] against all these changes that are happening right now and probably will number one, I would say to always make sure with any credit card you're getting, you got to run your numbers and know your options. Basically, you want
[06:34] people out there on the internet, including me. and you really just got to focus on understanding these new card updates within the context of your own existing card holder on a credit card that's going through a refresh, you need
[06:47] effective annual fee before any changes were made to that card. And then you the numbers again after those changes go into effect. If your effective annual probably bad for you. But if your effective annual fee is going down, then
[07:01] from these changes even if most other people out there are upset because like in the Chase Sapphire Reserve, for annual fee and I was getting the full value of a $300 travel credit based on
[07:15] my own spending habits. So my effective annual fee here was easily brought down was also occasionally taking advantage of the $10 per month Lift credit, but I wasn't using Lyft every single month. So that was maybe another 40 bucks in value
[07:28] for me each year. And then I pretty much never used Door Dash. So any credits or personally. That means that my effective net out-ofpocket cost on the Sapphire Reserve before the recent changes was around $210 per year. But now after all
[07:41] these changes go into effect for me, the new $795 annual fee is going to be partially offset by the same $300 travel credit. And then I'll also get the full value of the new $300 dining credit, which is going to be broken up into 150
[07:53] restaurants that I know I'll go to in my normal spending habits. There's also a $500 credit for the edit, which is a hotel program from Chase. And that's which I anticipate I'll likely use at least one of those per year. So, I'm
[08:07] only going to count $250 in potential value. And then there's a $300 StubHub credit split up into 150 every 6 months that I'll use at least once for $150 Sixers game like I normally use StubHub for. My wife also has a Pelaton
[08:21] membership that's going to get us $10 back per month for another $120 in value the lift credits, I know I'm going to use some of those throughout the year for around $40 back in value. There's a bunch of other credits in there as well
[08:33] into what I'm spending my money on right now personally. So again, I'm not going $1,160 in value that I'm expecting to offset my $795 annual fee, which gives me an effective annual fee of minus 365 per
[08:48] year. Even if I don't use one of those credits for the edit for $250, I'm still this new annual fee. But again, this is just how the math works out for my own trying to tell you that this is going to work out for you. I actually think these
[09:01] credits and other changes to the CSR are going to be bad for the majority of to be dissatisfied as existing card holders. So that's why it's going to be also very important to know your options. In this case with the Chase
[09:13] to keep downgrade or cancel. So if you don't want to keep the card, then your downgrade or basically product change into something like the $95 per year Sapphire Preferred or the no annual fee Freedom Flex or Freedom Unlimited. If
[09:27] Venture X, then you might look to see if you're going to be able to downgrade to the Venture or Venture 1 card. And if you're also not happy with the new MX eventually does get updated, then you can go ahead and product change to the
[09:39] less expensive gold or green cards. Downgrading or product changing like times because it sort of allows you to keep the same exact account open. if you that account. But sometimes cancelling the card might be what you want to do,
[09:52] you just understand the impact of what that might be to your credit score because everyone's situation is going to be different. However, before you ever to see if there's any retention offers available because I do suspect that
[10:05] of cancellations with all these card updates. And sometimes when that out statement credits or credit card points to help retain customers a bit. may vary type of thing. And some issuers
[10:18] takeaway that I want people to have here when it comes to your wallet. We've seen that issuers can change up these credit approval to the point where the updated card might be very different to the
[10:31] initial product you got approved for. So being able to adapt and react to these changes is kind of unfortunately just the reality of using premium credit with any of these recent changes, the good news is you could sort of let the
[10:43] essentially just voting with your dollars and bringing your business to any other credit cards they offer or to other issuers entirely. But if you were one of these credit cards before these changes went into effect and now you're
[10:56] think about the second thing you could do to fight back against these changes, which is to factor in signup bonuses. If there was ever a silver lining to when a massive update, it's that there's usually a massive signup bonus that goes
[11:09] along with that update. For example, right now we're seeing offers of up to 175,000 points after meeting spending requirements on the MX Platinum card, which could go up if AMX decides to increase the annual fee later this year,
[11:21] we're also seeing a limited time offer of 100,000 points, plus a $500 Chase after meeting those spending requirements. These signup bonuses could typically give you enough upside value to justify getting pretty much any
[11:35] year to sort of test the waters with it. And then again, after that first year, anymore, then you can just go ahead and make some changes by knowing your options. However, I also want to say that you don't need to let a great
[11:47] that might be difficult to manage distract you from a good signup bonus on and more stress-free to have. So, to me, I would definitely start telling people year Chase Sapphire Preferred, which is now offering 75,000 points after meeting
[12:03] a few other $95 per year cards like the Capital 1 Venture card and the City Strata Premiere that offer 75K and 60K points, respectively, again, after spending requirements. And that leads me to the third thing to do when fighting
[12:16] changes. and that is to focus more on these mid-tier travel cards that I think to most people when you compare them to the more expensive older siblings that card fatigue. Aside from having good welcome offers for low annual fees,
[12:31] give you access to transfer partners and many of them can actually be combined create these duo and trifecta setups. better rates than the ultra premium cards can. Mid-tier travel cards around
[12:44] the $95 annual fee range might lack some of the benefits like airport lounge access and access to other luxury experiences or events, but you can still coverage on the Sapphire Preferred, a credit for Global Entry or TSA PreCheck
[12:57] on the Venture card, or 3X spending multipliers to cover much more everyday Now, as for what I'm doing, I'm going to be holding steady for right now with all the Chase Sapphire Reserve, the Capital 1 Venture X, and the MX Platinum card
[13:11] because my wife and I have all three of these within our two-player strategy. My Sapphire Reserve card renews in late April or early May of 2026. So, my new 795 annual fee is not going to kick in until then, even though I am going to
[13:23] and benefits on this card starting at the end of October in 2025. So, I can go card for about five months to see what kind of value it gives me and if it's earlier. For the Venture X card that my wife has, yes, we are going to be losing
[13:38] free guest access and authorized user access to Capital 1 Airport lounges honestly, that doesn't really impact us all that much. And the Venture X itself still makes a ton of sense with the way the 395 annual fee is offset by the
[13:51] travel credit and the anniversary bonus on that card each year. I anticipate the this card even more at some point in the future. So, we'll just go ahead and happens. And then, if I was going to make any changes to our setup, I might
[14:04] honestly start by cutting my MX Platinum card after I see what they do with the has been getting used less and less lately, and so have all the credits that normal spending habits. And now that we have a Chase Sapphire Lounge in my home
[14:17] is the nicest credit card lounge in the country that we have access to with free have to do something really, really special here to make me not get rid of kind of just seeing where life takes us over the next 1 to two years. So, we're
[14:32] could slow down in the future. And if that happens, then I would expect that hybrid credit card setup with some cards as well. We're already kind of doing some cashback stuff when it makes
[14:45] use, like the Discover it card. And then for any of our current travel credit like to run our numbers on each of those cards every single year when deciding to keep it in our setup. If a certain
[14:58] fits into my life, then I'll definitely get rid of it. And if any of these they're eventually not working out one year or many years down the line, then I towards those cards and getting rid of them as well. Now, I try to be
[15:11] completely honest about how I feel about each credit card that I personally use. So, if you want to see me go ahead and rank all 26 of my cards based on what I make sure to go ahead and check out this video over here next. But as always,
[15:24] video over here next. But as always, thanks so much for watching.