Credit card and travel

[Anonymous]

Firm accommodations = dorm accomodations

CAN you edit on iPhone?

[too-much-time]

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@Anonymous wrote:
When I started this whole 'credit thing' a couple months ago, I specifically did NOT want travel rewards like MR because it just seemed to complicate matters. That was the reason for picking up A+, BCP, SM, and Cash+ in this run. My travel rarely involves air travel and is often at non-chain hotels. So A+ as my main spender seemed perfect, and I like it (especially since I got my 40k yesterday).

Now I'm debating on what my next move is. Before I came to the board this morning, I was researching for a June 4 night trip. It's very rare that my travel has me this many nights in one place, but it's a conference. Since I'm choosing to go out of town for it to go my preferred dates, I likely will have to foot the bill for hotel. There are a couple Hilton properties that are recommended and an IHG. I was poking around those hotel and card sites. Then I threw another card into the ring and realized this would be the perfect excuse for the Prestige. But then I got even more confused.

The more practical option for this trip is to go to a different location with firm accommodations with meals included. But then I lose the opportunity for all these great hotel points. I KNOW I'm letting the tail wag the dog on this and it's really frustrating. Still no idea what I'll do.

I think for me there's a fear of making 'the wrong choice' when it comes to travel cards, whether it's picking a hotel or airline card or choosing UR/TYP/MR, and THEN there's the fear of making the wrong redemption choice down the line.

There's definitely decision fatigue there. I can tolerate more of that than DH and bless him for usually using the right card for groceries/gas/restaurant etc. I think cash back (and even Venture and A+ and I assume Discover miles) is safer.

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Yes, the tail wagging the dog thing, which pops its head up from to time. I try to remind myself it's not worth it!

Come to think of it, I don't stay much at chain hotels. Yes, choice motels and best western for driving trips and picking up points in the process, but for air travel it's at family or at a charming hotel that fits right in.

[CH-7-Mission-Accomplished]

Over the last 25 years I cashed in probably a million points for travel from my AMEX, Diners and United Visa cards.  (They are all gone after BK).  To me they were worth it because I always cashed them in for business class or first class international award tickets.  Depending on the route, you can sometimes get values north of 10 cents per point flying front of the plane internationally.

Still mileage points are typically valued by the mileage experts at like 1.8 cents per point, which would be less than the 2 cents per dollar you would earn on Fidelity AMEX, Citi DC, Venture.  (They average the value over economy and premium cabin ticket values)

The problem with flying business/first on international carriers is that the seats can be very hard or completely impossible to secure unless you have very high frequent flyer status on that airline, you have to be wide open on dates you can travel and how long you can be gone, the taxes and fuel surcharges can be enormous (try $1200 per ticket on some BA flights), and the airlines are constantly devaluing the programs so that the ticket you start out trying to get that will cost you 100K miles is suddenly devalued and now you need 150K miles (per person).

I just cashed in the last of my miles, 400K BA points, to fly first class on Cathay Pacific to Bali.  The retail price of these tickets is $32,000 for two.  Had I had a 2% Citi Double Cash, I could have had $8,000 cash to do with as I wished.

Cashing in mileage points for economy class tickets is generally a lousy return on your points giving you less than 2 cents per point (and you could have earned the full 2 cents with Citi DC or Venture or Fidelity).

If you are a family that can put through 5K a month on your CC's (without resorting to MS), you would earn 60K points/year.  Assume you got a 50K signup bonus for opening the card and both you and your spouse got a card so you got 100K total signup bonus.

Signup bonuses = 100,000

Annual miles =   60,000

One international roundtrip business class ticket will cost about 110K points plus taxes and surcharges ($600+ per ticket)

So you need 220K miles +$1200 taxes/fuel surcharges for two people, so it will take you two years to earn the required points (60K/year X 2 years).

Now if you had done the 2% Venture card and got two cards you would have earned

40,000 Bonus miles X 2 people = $400 X 2 = $800.00

120,000 "miles" X 2 years = 240,000 "miles" =  $2400

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You would have $3200 to spend on any travel you like (less $59 X 2 annual fees for second year)

With the $3200 Venture card you could have paid for four plane tickets to Orlando, a hotel for five nights, a rental car and all your admission charges at Disneyland.

Some people like me love to fly international premium class.  But would you trade $3200 cash to do so?  That's $1600 per person.  Would you have spent that money on a plane ticket?  If you would pay $1600 cash to get a $5000 plane ticket then it may be worth it.  If you are the type of person who always flies economy so you can spend the money when you get there, you would do much better with cash.  Also if you are a homebody who doesn't like to fly, you might want to use that $3200 for a new deck or a home theater system.

Also, mileage cards are much better if you are self-employed or run your own small company  Then you can take off any dates you want, you can put through all of your company business expenses on your mileage cards and rack up millions of points, and you are more likely in the lifestyle of demanding first class travel and accomodations.  It works great if you are a dentist running through $500,000 in lab fees or you own a small company and can pay $2 million to your vendors with your mileage CCs.

[vagrants]

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@Sharingan wrote:

I've looked over the Hilton Reserve, and it's just not a card that suits my needs at all. I like that the Hyatt and IHG AFs are lower than other hotel cards that offer similar benefits. The SPG is another well admired hotel card that I chose to get rid of because it overcentralized my spending. I couldn't take advantage of bonuses offered by my other cards because I'd have to throw everything on the SPG to obtain a decent return with it, primarily due to the points being hard to accumulate.

The Cash+ will be valuable to me because I have $160 a month going to Verizon and Sprint for cellular service. I am currently trying out both the Citi AA and the United Explorer during the free first year periods for them. I utilize American's hub in Miami very often, so that's a plus for the AA card/program. United is my preferred airline to Hawaii, but that's about it. 

I have a number of 5% category cards available to me, so I'm not too concerned about caps. My Sam's Club card picks up where the Sallie Mae leaves off for 5% gas. For groceries, I still use the EDP for MR points, but I have the Sallie Mae and my revived BCE available. Lastly, my Sallie Mae and Citi Forward (not quite 5% on its own, but still decent and uncapped) cover Amazon purchases. If you are flexible, there's still value in the restricted 5% cards.

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Hilton VISA Signature is free and as long as I'm a card member, Hilton points won't expire I was told.

Cell phone & Internet is covered with Ink for me, so I use Cash+ for other reasons.

Forward is 5% if you go for studnet loan & mortgage checks...the check doesn't have to be used for the intended purposes...if I don't play the game, caps don't bother me, I don't spend much/month or per year on "bonus" categories...or I don't spend much on any of the credit cards I have in the 1st place.

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@ too-much-time wrote:

Yes, the tail wagging the dog thing, which pops its head up from to time. I try to remind myself it's not worth it!

Come to think of it, I don't stay much at chain hotels. Yes, choice motels and best western for driving trips and picking up points in the process, but for air travel it's at family or at a charming hotel that fits right in.

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The last time I checked, Choice points expire 2 years from the points credited...I don't like that at all...I've been wanting the Best Western CC for a couple of year for whatever reasons, I considered the one from FNBO more seriously than AA/United card...

[sillykitty1]

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@Revelate wrote:

Generally speaking, I suspect that lifestyle dictates "optimum" card lineup, not the other way around for virtually everyone.

I don't travel much, so what good would the traditional travel card do me?  Sure I may actually app for one since still seeing people get silly limits after a bit of research, but if I were to go get a Ritz it wouldn't turn me into a baller.  Revelate the shot caller... maybe in some alternate universe, but never in this one.

End of the day my habits define my card selection with few exceptions that are all intrinsically tied to building my credit report.

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I agree with this.  My spend dictates my card choices, not vice versa.

I currently have a large amount of reimburseable travel.  So by putting that spend on travel cards, it is at higher earn rates/better redemptions, and is able to fund my personal travel.

But if my position changes, or we went to corporate cards, then I would change my credit card mix drastically.  Without reimburseable travel, my spend would not justify all the AF's I have.  I would certainly get more value out of my 5%-3%-2% cards in that case.

[jsucool76]

I've definitely began to travel more since I got into travel cards.

Ritz and Marriott card got me my NYC trip for 3,plane and hotel for like $186

Ritz card got me club level in DC for June trip for $179 a night

Prestige got me 2 rt tickets to DC for $167 ($83.50 per ticket)

AA card will get me free checked bags (25$ per person each way, so 100$ total... just on that alone AF is paid back on one trip)

[Anonymous]

Jsu,

On the Club level access .  If a Ritz has multiple types of rooms, such as resort view,  ocean view, club level resort view, club level ocean view, do you book the lowest priced room you can then they will will bump you to the lowest level club level or what?  Not sure exactly how that works.  And it's good for 7 nights correct?

[jsucool76]

you can book a standard room, and then you'll be given a standard club level room.

either book online, or over the phone. if you book online you then need to call up to use the certificate. nightly rate may go up or down, as you need to pay a certain rate.

you can always get your club level room and request an upgrade based on status (as you're gold with Ritz card if you hit the spend threshold)

certs are good for up to 7 nights.

[Anonymous]

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@jsucool76 wrote:
you can book a standard room, and then you'll be given a standard club level room.

either book online, or over the phone. if you book online you then need to call up to use the certificate. nightly rate may go up or down, as you need to pay a certain rate.

you can always get your club level room and request an upgrade based on status (as you're gold with Ritz card if you hit the spend threshold)

certs are good for up to 7 nights.

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Thanks!

[Revelate]

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@Sharingan wrote:

I've been a points-for-travel user for quite some time now, but I've been reevaluating cash back cards. I recently added the Double Cash and the Sallie Mae cards to my lineup, and I could certainly find value in the Cash+, despite the butchering it has received in recent years. I am always going to have a hotel card, dedicated airline card, and multipurpose points card regardless. I am leaning towards the Chase Hyatt, Citi AA or Chase United Explorer, and the CSP to fulfill those categories, respectively. The Hyatt, Marriott, or IHG cards are no brainers because of the free annual night, which helps to compensate for the AF. 

I love to travel, but I've become quite fond of the 5% cash back cards with no AFs. 

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That is an excellent point and I was thinking about picking up the Marriot card a bit ago (and may still somewhat soonish); I had looked back over my spending for the past few years and noticed I have at least 1 hotel stay annually and most of them fall under a Marriot brand.

@Anonymous: of course lifestyle (didn't mean to confuse the issue, just suggesting that everyone has an individual one) is something you choose which is really only limited by available cash flow at the end of the day, and we wind up in our picked ones for various reasons.  My family is scattered to the wind, I only have a couple of close friends all of which live within a hour's drive, and I spent a year racking up a quarter of a million miles on an airplane at one point... there's just no attraction for me currently.  Of course living in So. Cal which is inarguably a destination location anyway, I don't have to go very far for access to a wealth of entertainment and cultural attractions if I'm so inclined and that doesn't include airplane.

If I had kids (and more likely, in-laws, someone from a well-knit family is high on my list of desires in a potential spouse though that's a want rather than need admittedly) then that may change, but given that even with my awkward credit report right now it'd take me less than 5 minutes for approval and I'd have the card rather soon after that, doesn't really make sense for me to carry a non-trivial travel card.

So yeah, based on my individual choices and needs: the CSP is a great card, it's just not a fantastic one for me, whereas the Freedom is good, and Sallie is excellent.... and given that every individual is exactly that, arguably they should go through the same process for their needs.