How to Justify $10,000 in Credit Card Fees (And Why I Do It)

This Sounds Ridiculous — I Know

Most people try to avoid annual fees. I pay around $10,000 a year. Over time, I’ve opened and managed well over 100 credit cards and accumulated several million points across Chase, Amex, airline programs, and hotel programs. Not by accident, not by mistake — and honestly, I enjoy it.

That number isn’t just from my own cards. I track and manage cards for three people: myself, my partner, and my mom. Across all of us, the total annual fees add up quickly. I even keep a spreadsheet to track renewal dates, benefits, and whether each card still deserves its place.

If that sounds ridiculous, I get it. It probably should. But here’s the part most people don’t see: I’m not paying for random credit cards — I’m paying for a system.

This Isn’t About One Card

Most people evaluate credit cards one at a time.

Is this card worth $95? Is this one worth $695?

However, that’s not how I think about it.

I look at everything as a portfolio. Each card has a role. Some generate value directly. Some support long-term benefits. Some give flexibility. And some are temporary — they come in, do their job, and leave.

Once you start thinking this way, the annual fee stops being the question. It becomes part of the system.

In a way, I treat this like a business. The annual fees are the expenses, and the benefits are the returns. As long as the returns outweigh the costs, I keep the system running.

And that system is what I’ll break down next.

How I Actually Manage It

The only way this works is because I don’t treat all cards equally.

And I organize everything into tiers.

Once you see the structure, everything becomes much easier to manage.

Tier 1 — Core (Untouchable Cards)

These are the cards I will not cancel.

• Amex Platinum (Morgan Stanley) — Consistently returns more than the annual fee (real usage, not theoretical)
• Hilton Aspire — One of the easiest cards to justify; benefits alone outweigh the cost
• Chase Ritz-Carlton — Strong ongoing travel value + benefits I still actively use
• Alaska Airlines Visa — Supports my Alaska status strategy and long-term airline value
• Chase Hyatt — Helps me reach and maintain Globalist faster; key to my hotel strategy

These five cards form the foundation of my system.

Tier 2 — “Keep Forever” Cards

These are not core cards, but I don’t plan to cancel them. They mostly sit in a drawer, but consistently return enough value to justify the annual fee.

• IHG Cards (4 total across accounts) — easy, flexible stays; good backup when I don’t use Hyatt
• Marriott Cards (3 total) — annual free nights + I have lifetime Platinum, so the benefits actually matter
• United Quest (2 total) — I have lifetime Gold (and so does my partner), so I still get value when I fly United
• Chase Freedom (3 total) — no annual fee + 5x quarterly rotating categories when it fits
• Costco Card (2 total) — I love Costco shopping

I don’t add more hotel cards beyond this because I’m intentionally focused on Hyatt. I’d rather concentrate my stays and build value there than spread it across too many programs. Also, I’m a father of two young kids now, so my travel is naturally more limited — which makes it even more important to keep the setup simple and focused

Tier 3 — Access & Flex Cards

These cards exist for specific access and flexibility. I rarely use them, and they don’t generate outsized value on their own — but they give me options that I want to keep.

• Citi Prestige — keeps my ThankYou points ecosystem alive
• Capital One Venture — maintains access to Capital One transfer partners

But they extend the system in ways that matter when I need them. If I ever use up the points or stop needing that access, I would likely cancel them.

Tier 4 — Rotating Cards (The Engine Behind Everything)

This is where most of the value actually comes from. These are not long-term cards — they are part of a rotation strategy built around sign-up bonuses. Roughly 80% of the cards I’ve opened over time fall into this category. They come in, do their job, and then I decide whether they stay or go.

Having said that, there are a few simple rules I follow:

• Keep the card for at least 12 months to stay in good standing with the bank
• Use the card with a clear goal — usually to earn the full sign-up bonus
• Avoid closing too aggressively to maintain a strong credit profile
• Early on, hold cards longer to build history; later, be more flexible
• Repeat the process consistently across different banks and programs

At this point, I maintain a 830 credit score, so this system runs smoothly without creating friction. Over time, this is what allows me to continuously generate points at scale. Even after years of redeeming points for travel, I still maintain large balances across multiple programs — not because of any single card, but because this process keeps working.

Why This Matters (And Why I Teach It This Way)

I’m a personal finance professor at a community college, and I’ve explained this idea to my students many times — not specific cards, but the system behind them.

Although most people are taught to look at credit cards one at a time, to focus on the annual fee, and to decide in isolation, that’s not how this actually works in real life.

What matters is the system. How the cards fit together. How the value flows over time. And whether the structure makes sense without forcing it.

This is what I’ve been doing for years, and it’s something I genuinely enjoy. I like tracking it, optimizing it, and refining it over time. It’s not about chasing every card — it’s about understanding which ones belong, which ones don’t, and why.

Maybe this approach isn’t for everyone. It takes attention, discipline, and a certain level of interest. But it does show something important:

The annual fee itself is not the problem. The lack of a system is.

Final Thought

$10,000 a year sounds extreme. Maybe it is.

But I’m not paying for random credit cards. I’m running a system where every card has a role, the value comes naturally, and the math works over time.

That’s how this works for me.

And honestly — if I were traveling more, I’d probably be running an even bigger system.