Why Do Lower Annual Fee Cards Often Have Better Bonus Categories?

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    Reader Rich asked the following on a post I wrote in July, entitled "Which Credit Cards Do I Use For Each Bonus Category?" "I am slightly confused on Citi ThankYou® Premier Card and Citi Prestige® Card. On x3 category, Prestige offers hotel and airfare, but Premier offers “Travel”. Is it safe to assume that Premier’s “Travel” x3 categories covers the Prestige x3 categories? So if I book on AA or on Hyatt website, I should be indifferent on using Premier or Prestige card, right? Thank you!!!" This raises an interesting general question -- why is it that high annual fee credit cards often have less rewarding bonus categories than lower annual fee credit cards? Rich is indeed correct in pointing out that the Premier has better bonus categories than the Prestige. The post Why Do Lower Annual Fee Cards Often Have Better Bonus Categories? appeared first on One Mile at a Time.

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