A new perspective on the PRG

[ramblin_wreck08]

There has been a lot of hate directed at Amex charge cards and the MR system recently. Additionally, many consider $30k to be the minimum spend requirement for the PRG. I just wanted to offer a new perspective, as I feel that the PRG is a good card for my personal use...based on rewards alone.

I have had the PRG for 7 months. It is now receiving every bit of my spend. In total is has seen $9.2k spend over the last 7 months, and has amassed a whopping 15k MR points (that's a lot to me at least, and, granted, I am still waiting on some to post). That's 1.63 points per dollar on my spend. The points are worth anywhere from 1-2 cpp if redeemed on travel/transfers. I travel at least once or twice a year, so I will use them as such. Let's assume 1.5 cpp. That's $225 back in 7 months. I pay $175 per year in AF (although this year was waved). I save $25 because with the roadside assistance because it lets me drop my coverage from my insurance company. I'm plus $75 right now. Extrapolate this to a year and I net $235 after the AF on $18.5k in spend. At 2 cents per point I'd net $365 on $18.5k in spend. That's an overall return of 1.27% or 1.97%, respectively. All with the benefits of NPSL and backed by Amex's purchase protection. This doesn't include the occasional useful offers either.

Now let's consider a "perfect" scenario for me - I get a 50% bonus for a British Airways transfer. Those 15k MR points turn into 22.5k miles. I have often seen 2 cpp redemption possibilities. Extrapolate to a year and I have 38.5k points. At 2 cpp, that's $770 back. Minus the $175 AF. Plus the $25 saved on roadside assistance. That's a net of $620 on $18.5k spend, or 3.35% back.

Granted, this is somewhat of a "best case" scenario for my personal use, but I think it goes to show the value of MR points. More importantly it goes to show how each and every one of us should consider our own spend when looking for the best card for us. I in no way meet the $30k/yr spend requirement that most consider to be necessary for the PRG to make sense. Despite that, it works for me. I also appreciate it's other attributes in addition to rewards. I love the NPSL and the "benefits" the card has to offer. Their online system is my favorite and I love their annual spend reports.

The card works well for me, but I know it doesn't work well for others. That's just the way it is. I know that other programs may fit others' needs better. Just because I don't see value in another program doesn't mean nobody should hold the card. Everyone's situation is different. We come to this forum for support and to share our enthusiasm for all things credit related. By all means share your experiences. But I just don't get the bashing and hatred that goes on toward some particular companies and cards. They may not work for every one of us, but they do work for some.

Just wanted to share my thoughts in hopes that card "bashing" can stop and the forum can become a friendlier and more productive place.

[SnackTrader]

I don't think card "bashing" is the primary reason behind disagreement over the PRG or any other card. What ends up driving some of the sentiment against certain cards is how they are used for certain people. Once a person gets it into their head that a particular card doesn't work well for their spending needs, there is a chance that they may place that same logic towards others. However, other people may find that card very beneficial. I think in general, many members of the forum attempt to be helpful to a poster given that poster's needs and not their own bias, but there are many examples where bias comes into play.

I'm very glad that the PRG has worked out well for you, but the honest truth is that is not the case for many other people, including myself. Then again, the cards in my wallet may not suit your spending well. So in summary, I agree with what you said.

I think it is a good lesson for all of us to ask questions when people are looking for card recommendations. Too often I see this conversation:

"I have a 650 FICO, what is a good card for me?"
"freedom"
"BCE"
"Palladium"
"Discover"

Lets ask questions, folks!

[ryanbush]

It all really depends on you're spending profile wether the card will be worth it for you or not; For example:

My second statement just cut on my CSP and I have earned 19.5K points on 4750$ in spend (lots of spend at 4 & 6/pts per dollar) UR points are easily more valuable that MR but lets just put that at 2c Per and figure in the 7% dividend and I'm at 20.8K pts and I have earned 416$ in rewards, or the equilivant of almost 10% cash back.  Sure beats a lot of cards out there.

[ramblin_wreck08]

Thank you for the responses.  SnackTrader, maybe I should have done a better job clarifying what I mean by "bashing".  To me there is a difference between letting someone know a particular card hasn't worked for me, as opposed to saying "I don't see why anyone would ever get this card" or saying a particular rewards program is useless, etc., etc.  Statements like this can easily influence someont to look in another direction when there is a chance that the card or rewards structure in question could have been the best option for them.

I would also agree that in general posters are very friendly and very helpful to one another.  However, I have seen more and more of statements like the above lately, and it seems to me that this forum would be more helpful without such statements.

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@ryanbush wrote:

It all really depends on you're spending profile wether the card will be worth it for you or not; For example:

My second statement just cut on my CSP and I have earned 19.5K points on 4750$ in spend (lots of spend at 4 & 6/pts per dollar) UR points are easily more valuable that MR but lets just put that at 2c Per and figure in the 7% dividend and I'm at 20.8K pts and I have earned 416$ in rewards, or the equilivant of almost 10% cash back.  Sure beats a lot of cards out there.

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Wow!  That is great!  Sounds like the perfect card for you.  If you don't mind my asking, how are you getting 4 to 6 points per dollar back?  Is it through the UR mall?

Additionally, I wouldn't necessarily agree with a blanket statement that "UR points are easily more valuable than MR".  I agree that in many, if not most, cases they can be, but in some instances and situations MR may be more valuable for a particular person.  That is the point I am trying to get across - that blanket statements fail to capture our individual wants and needs when it comes to our cards and reward programs, and can often be misleading for forum members who do not take the time to run through and calculate their returns on various cards.

[flowfaster]

IMO the "best case" scenario would be to churn the PRG card once every 2 years (canceling after the first, then waiting 12 months to qualify for the bonus again).  That way you would never pay the AF and would amass more MR points than your strategy. This way you also get the backdating AAOA boost, every time you apply!  Keep in mind that if you want to keep your MR points after you cancel the card you need to open an Amex Blue(revolver).  This way you can put your "spend" on a 5-6% card and earn even more $, all without paying an AF.

Just another take.

[ryanbush]

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@ramblin_wreck08 wrote:

Thank you for the responses.  SnackTrader, maybe I should have done a better job clarifying what I mean by "bashing".  To me there is a difference between letting someone know a particular card hasn't worked for me, as opposed to saying "I don't see why anyone would ever get this card" or saying a particular rewards program is useless, etc., etc.  Statements like this can easily influence someont to look in another direction when there is a chance that the card or rewards structure in question could have been the best option for them.

I would also agree that in general posters are very friendly and very helpful to one another.  However, I have seen more and more of statements like the above lately, and it seems to me that this forum would be more helpful without such statements.

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@ryanbush wrote:

It all really depends on you're spending profile wether the card will be worth it for you or not; For example:

My second statement just cut on my CSP and I have earned 19.5K points on 4750$ in spend (lots of spend at 4 & 6/pts per dollar) UR points are easily more valuable that MR but lets just put that at 2c Per and figure in the 7% dividend and I'm at 20.8K pts and I have earned 416$ in rewards, or the equilivant of almost 10% cash back.  Sure beats a lot of cards out there.

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Wow!  That is great!  Sounds like the perfect card for you.  If you don't mind my asking, how are you getting 4 to 6 points per dollar back?  Is it through the UR mall?

Additionally, I wouldn't necessarily agree with a blanket statement that "UR points are easily more valuable than MR".  I agree that in many, if not most, cases they can be, but in some instances and situations MR may be more valuable for a particular person.  That is the point I am trying to get across - that blanket statements fail to capture our individual wants and needs when it comes to our cards and reward programs, and can often be misleading for forum members who do not take the time to run through and calculate their returns on various cards.

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I have really only used the card for the 2x categories.  Made a large purchase on hotels.com for 6ppd (2x travel + 4x hotels.com ur mall), bought a couple suits from macys for 5x UR mall + 1x, 100$ iTunes gift card at 5x from UR mall.

I use my AMEX too and agree MR points can be valuable, my point was when looking at points programs you really need to find the card that fits your spending patterns.  The CSP is great for an everyday card.  The PRG would be a better card for someone who purchased lots of airfare.

Now if we could just get a UR or MR card that wold give 3x-4x on an unlimited amount of gas purchases and I would be in heaven.

[Open123]

Good post by the OP.

One card that appeals to one user may not appeal to another.  To me, the only useless card would be no rewards, high interest, and low CL; however, to a person building or rebuilding credit, this anti-rewards card from a National Bank may be a godsend of a platform to more suitable rewards cards.

I think cards are either suitable, or not.  To each his own, as it should be.

A blanket statement such as "MR sucks," clearly denotes an obtuse level of understanding of not only the MR program, but a minimal grasp on the nuance of leveraging spending through rewards programs with variable redemption values.

MR rewards redeemed opportunistically and prudently for premium cabin int'l flights are amongst the highest return on spending, especially when combined with a bonus transfer.