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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: Luis Alvarez/DigitalVision/Getty Images September 01, 2020 Ted Rossman is a senior industry analyst at Bankrate.com. He focuses on the credit card industry and helps consumers maximize rewards, get out of debt and improve their credit scores. Bankrate logo

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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo

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At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo

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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Amid the COVID-19 crisis, one of the silver linings in the credit card world has been the many “new normal” promotions that card issuers have rolled out. In June, our sister site CreditCards.com found 81 percent of annual fee cardholders felt they were receiving at least as much value as they did pre-COVID. That was incredible, since most annual fee cards focus on travel, and that industry has been devastated by the pandemic. Cardholders’ high satisfaction levels made sense because so many cards adapted their structures to prioritize groceries, streaming services, takeout, delivery, home improvements and other areas where consumers were spending. However, that happiness may soon be put to the test. Some of these temporary deals have already expired, and many others are due to lapse later this month. The is allowing cardholders to redeem their miles to offset streaming and restaurant purchases at a rate of 1 cent per mile until Sept. 30. That valuation is normally reserved for travel, and it’s double what cardholders get for statement credits. The and both have great offers. For the Chase Sapphire Preferred, earn 2x total points on up to $1,000 in grocery store purchases per month from November 1, 2020 to April 30, 2021. Includes eligible pick-up and delivery services.

What happens next

The Sapphire cards were on their second wave of COVID promotions (in May and June 2020, they focused on grocery rewards). Currently, on the Chase Sapphire Preferred, earn 2x total points on up to $1,000 in grocery store purchases per month from November 1, 2020 to April 30, 2021. Includes eligible pick-up and delivery services. However, many airline and hotel cards — including those co-branded by Delta, United, Southwest, Marriott, Hilton and others — temporarily gave higher rewards than usual at supermarkets, but those arrangements have ended. Many of those are Chase cards and others are issued by American Express. On Aug. 19, the Transportation Security Administration processed fewer than 600,000 airline passengers, a 75 percent drop from the same weekday a year prior. On the same date, seven-day average airline spending was down 86 percent from the equivalent period in 2019, according to Chase. Lodging spending was down 52 percent. Research firm STR found U.S. hotels were only half full during the week ended Aug. 15. They were 72 percent full during the corresponding time frame a year earlier. The Chase spending data is particularly alarming because it’s forward-looking. People usually book trips well in advance, yet travel spending remains very depressed. We know from the TSA and STR that current travel is way down. The Chase numbers suggest it’s unlikely to pick up anytime soon. I don’t think travel perks are ready to stand on their own two feet, so unless non-travel perks are added or extended, annual fee travel cards could be on shaky ground. Many consumers are especially fee-conscious these days, given the uncertainty about the economy and jobs.

What you can do

Ask for a break

Look up when your annual fee is set to renew. A few weeks before that, call customer service and ask them to waive (or at least lower) the fee. A 2018 CreditCards.com found that 70 percent of the people who asked for an annual fee to be waived or lowered were successful. Anecdotally, I suspect your odds are even better these days.

Ask for a retention offer

If you can’t avoid the annual fee itself, perhaps some bonus rewards points or miles could lessen the sting. Ask to speak with the card issuer’s retention department. They’re the last line of defense before customers cancel cards, and they often dole out sweeteners to incentivize you to stay.

Consider a product change

Canceling your card is an option, but it’s often not your best route. It will reduce your available credit and could in turn raise your credit utilization ratio (credit you’re using divided by credit available to you). That would hurt your credit score. Instead, request a product change. That’s when you switch to a different card from the same issuer (perhaps one that doesn’t charge an annual fee and has a rewards structure that better suits your current spending habits).

Save up for a future trip

You won’t be stuck at home forever, so you could amass a points-and-miles stash and dream of faraway lands. “Future you” will thank you. Don’t go overboard, though. Airlines and hotels often devalue their points and miles. Saving up for a desired first-class flight or suite is one thing — hoarding aimlessly is another. If you have more travel points or miles than you know what to do with, consider switching to a cash back card. Have a question about credit cards? Email me at and I’d be happy to help. SHARE: Ted Rossman is a senior industry analyst at Bankrate.com. He focuses on the credit card industry and helps consumers maximize rewards, get out of debt and improve their credit scores.

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