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09-13-2017 12:35 PM
I currently have an amex blue cash preferred for gas/groceries. I am looking to get a everyday purchase cash back card soon, probably the chase freedom unlimited.
I have also been looking at the chase sapphire preffered, but i do not travel often/ eat out often. The reason i want this card is the sign up bonus and to redeem the points from chase freedom unlimited to put towards a flight for a vacation i take once a year. With the $95 annual fee would this card be worth it for me just for the signup bonus and to transfer freedom unlimited points?
I typically spend $50-100 eating out a month and $0-50 on uber a month
I would probably spend about $500-1000 a month on the freedom unlimited
I tried seaching so sorry if someone else has had a similar question
09-13-2017 12:50 PM - edited 09-13-2017 12:58 PM
Are you good at math? FIgure out what you value your points at with transfer partners. This is usually 1.5-3 cents per point. Figure out what you spend a year on the freedom unlimited and what you'll get back. Then multiply that by whatever you value your points at with transfer partners. Figure out the cash equivalent of the transfer parter points. Then subtract the annual fee from that. If the difference there is more than the sum of what you would get back at a straight 1.5% rate with just the Freedom Unlimited, then yes the annual fee would be worth it.
Here's a sample:
You spend $1000 on the FU and $200 on the CSP each month. That's $15 + $4 back in cash back. If you figure out that when you transfer to United your points are valued at 1.5 cents per point (this is just a guess, I haven't actually looked at the numbers), then you'd get back $28.50 in value each month. Over a year you'd get $342 in value with the CSP and transfering to United. Without transfers and just using a card that gives 1.5% back on general spend and 2% back on travel and restuarants you'd get back $228. $342- $228=$114. $114-$95(CSP fee)=$19. So in this example you would save/earn an additional $19 each year by using the CSP to transfer to United.
09-13-2017 01:21 PM
ALK11 wrote:Are you good at math? FIgure out what you value your points at with transfer partners. This is usually 1.5-3 cents per point. Figure out what you spend a year on the freedom unlimited and what you'll get back. Then multiply that by whatever you value your points at with transfer partners. Figure out the cash equivalent of the transfer parter points. Then subtract the annual fee from that. If the difference there is more than the sum of what you would get back at a straight 1.5% rate with just the Freedom Unlimited, then yes the annual fee would be worth it.
Here's a sample:
You spend $1000 on the FU and $200 on the CSP each month. That's $15 + $4 back in cash back. If you figure out that when you transfer to United your points are valued at 1.5 cents per point (this is just a guess, I haven't actually looked at the numbers), then you'd get back $28.50 in value each month. Over a year you'd get $342 in value with the CSP and transfering to United. Without transfers and just using a card that gives 1.5% back on general spend and 2% back on travel and restuarants you'd get back $228. $342- $228=$114. $114-$95(CSP fee)=$19. So in this example you would save/earn an additional $19 each year by using the CSP to transfer to United.
Oh ok, thanks for the sample I was a bit confused. How do i find what the value of points are for transfer partners or is it always changing? And I see how the csp says that if i redeem through chase ultimate rewards, points are worth 1.25. Is this different from redeeming through a transfer partner?
09-13-2017 01:45 PM
kadenm wrote:
ALK11 wrote:Are you good at math? FIgure out what you value your points at with transfer partners. This is usually 1.5-3 cents per point. Figure out what you spend a year on the freedom unlimited and what you'll get back. Then multiply that by whatever you value your points at with transfer partners. Figure out the cash equivalent of the transfer parter points. Then subtract the annual fee from that. If the difference there is more than the sum of what you would get back at a straight 1.5% rate with just the Freedom Unlimited, then yes the annual fee would be worth it.
Here's a sample:
You spend $1000 on the FU and $200 on the CSP each month. That's $15 + $4 back in cash back. If you figure out that when you transfer to United your points are valued at 1.5 cents per point (this is just a guess, I haven't actually looked at the numbers), then you'd get back $28.50 in value each month. Over a year you'd get $342 in value with the CSP and transfering to United. Without transfers and just using a card that gives 1.5% back on general spend and 2% back on travel and restuarants you'd get back $228. $342- $228=$114. $114-$95(CSP fee)=$19. So in this example you would save/earn an additional $19 each year by using the CSP to transfer to United.
Oh ok, thanks for the sample I was a bit confused. How do i find what the value of points are for transfer partners or is it always changing? And I see how the csp says that if i redeem through chase ultimate rewards, points are worth 1.25. Is this different from redeeming through a transfer partner?
Yes. Through the UR portal you get a flat 1.25 multiplier on your rewards. So the $500 signup bonus is worth $625 when travel is booked through the portal. Now I haven't done this myself so take this with a grain of salt, but find a United flight on google flights and see what it costs. Then see how many United points it would cost. For example if the flight costs $400 cash or 30000 points, you'd be getting $400 in value for $300 in points.
09-13-2017 02:03 PM
ALK11 wrote:
kadenm wrote:
ALK11 wrote:Are you good at math? FIgure out what you value your points at with transfer partners. This is usually 1.5-3 cents per point. Figure out what you spend a year on the freedom unlimited and what you'll get back. Then multiply that by whatever you value your points at with transfer partners. Figure out the cash equivalent of the transfer parter points. Then subtract the annual fee from that. If the difference there is more than the sum of what you would get back at a straight 1.5% rate with just the Freedom Unlimited, then yes the annual fee would be worth it.
Here's a sample:
You spend $1000 on the FU and $200 on the CSP each month. That's $15 + $4 back in cash back. If you figure out that when you transfer to United your points are valued at 1.5 cents per point (this is just a guess, I haven't actually looked at the numbers), then you'd get back $28.50 in value each month. Over a year you'd get $342 in value with the CSP and transfering to United. Without transfers and just using a card that gives 1.5% back on general spend and 2% back on travel and restuarants you'd get back $228. $342- $228=$114. $114-$95(CSP fee)=$19. So in this example you would save/earn an additional $19 each year by using the CSP to transfer to United.
Oh ok, thanks for the sample I was a bit confused. How do i find what the value of points are for transfer partners or is it always changing? And I see how the csp says that if i redeem through chase ultimate rewards, points are worth 1.25. Is this different from redeeming through a transfer partner?
Yes. Through the UR portal you get a flat 1.25 multiplier on your rewards. So the $500 signup bonus is worth $625 when travel is booked through the portal. Now I haven't done this myself so take this with a grain of salt, but find a United flight on google flights and see what it costs. Then see how many United points it would cost. For example if the flight costs $400 cash or 30000 points, you'd be getting $400 in value for $300 in points.
Got it, thank you!
09-13-2017 05:22 PM
Why not a Citi Double Cash card? Flat 2% on everything. I will be getting rid of my CSP after Christmas and downgrading it to a Freedom Unlmited. I don't travel enough to make the extra points worthwhile and everything I've looked at booking through the travel portal I've been able to find a much better deal on elsewhere.
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