Help me decide on a Travel/Rewards card!

[Kozmo]

I am looking into a good travel and rewards card to use.

Since I know everyone will ask

Income:$90k
Score:should be above 700 but will check this before I apply obviously. Only derogs were when I had 2 60 day lates 5 years ago from a student loan that was suppose to be in forbearance (already tried GW and SM wouldn't budge).
AAOA:5.5yrs
Util:26% mostly because of a promo plan I'm paying down with 0% interest

Current accounts:

-Chase Freedomx2 (I will be combining these soon) as I used to have a different card and they turned it into a second freedom for me year ago unexpectedly. Combined CL $2500
-Amex blue sky $2600 limit
-Helzberg $5700 limit
-American Eagle (had this since I was in college and hardly ever use it) $1900 limit
And I am still an AU on my dads account as he did this back in 2003 and I don't want to lose the aaoa by removing it yet until I apply for something.

The only accounts with balances are Helzberg since its on a promo plan and Amex which will be paid down.

I use the Freedoms the most for cash back.

I've been with Chase since 2007

I of course thought of the CSP. But with the limited research I've done on the account I'm not 100% sure if it fits my needs. It seems like a great card/UR system for those that like flying first class and upgrades and nice hotels but I don't have those requirements when I travel. I'm ok wih flying coach. My concern is getting there and however i do so is irrelevant. Seems like its good for flying United-which is fine but they tend to be more expensive in general than other airlines. Though I do like the UR system and since I have the Freedom and chase checking it would help accumulate points quickly. And no I don't care that its "metal" lol though that is different.

I don't travel "a lot". Maybe twice a year. But I am going to Europe next year and would like to have something for that. Especially since its for 2 weeks.

When I travel its mostly domestic and I typically fly whatever is cheapest. Which here in Michigan is typically Delta/Air Tran/Spirit depending on where I fly to. Though I mostly find myself on Delta.

I thought about Delta Skymiles simply for the free checked bags and sign up bonuses. But with 1% back it seems points would accumulate rather slowly.

I don't mine paying an AF.

I wouldn't have an issue using the account and PIF since I would likely add my DW as an AU so she can get points too. She doesn't want to sign up for her own account since we put the home in her name and she has plenty of open credit available.

But I wouldn't have to use the points on travel all the time. Since I do not travel frequently I'm ok with using points for anything (cash back, using it for local hotels for date nights etc..) though we hope that with enough usage on a travel card we can travel more


Thanks for the insight and sorry for the long post!

[randeman]

Chase United Mileage Plus Explorer card.  Hands down.  Followed by Escape by Discover.  Unless you really want airline miles specifically, then the Explorer card.

[Crashem]

OP,

Are you looking specifically for a travel rewards card or the best travel or rewards card?  Can you give me an idea how much you might spend on the card in a year?

Also, noticed your limit on your Amex Blue Sky card.   How old is that card?  When was the last time you got a CLI on it?

[Kozmo]

@ randeman: I've thought about it but again United always seems to be the most expensive around here. Case in point:

In October ill be flying from Detroit to San Fran. Again, I typically fly coach though wouldn't be against first class of course. But the prices are as follows:

Air Tran $303
Delta $430
United $470

Yes, air tran has a stop as opposed to the other 2 which are direct. But it only adds about 1.5 hours to the trip and with two of us flying it saves $260 which we would rather spend once were there.

Just one example I know. And yes we make decent money as I didn't factor in her income but I guess it's just how I was raised. I'm not cheap or anything I would just rather use the money for something else like a better room or something.

@crashem: hard to say off the top of my head but right now me and DW have our own cards as we got married earlier this year and haven't transitioned much of that yet. But myself: probably at least $1k a month but likely more as I do use my Debit a lot and will not be doing so as much. But again ill also be adding DW to the account so between the 2 of us we could probably do no less than $3k if we really wanted to.

In terms of the Amex it was my first cc that had an original limit of maybe $300 maybe in 2006?. I used it a lot early in college but not much In the last 4 years. It just doesn't have much in rewards unless I get offers like "spend $75 as Costco and get $25 statement credit"- or something to that effect. I used it recently just for the sake of it. I'm sure I can easily ask for a CLI and may do so but I also may PC to something else if needed. But obv not delta since I wouldn't get the miles.

For the CSP- does it make sense to get it for the type of travel I do? I noticed my typical Airliners aren't there for the direct UR transfer but I could always book through the UR mall if needed to for my choice of airline. But it seems the full benefit would be to transfer the points directly to United or other select airliners for max return.

[Crashem]

OP,

If you have not gotten a requested CLI in the last 6 months on AMEX, you need to do CLI request of 3X assuming you have good payment history with them.  In your case, it should be 7800.  Look through forum for more info under AMEX 3X.  The CLI will not interfer with any PC you want to do later.  It will not cost you anything credit score wise either.  In fact, it will help you a lot.  It doesn't matter that you will or will not need 7800 in credit.  Your main reason is to get a TIER One CC issuer to get you limit over $5k so others will follow suit when you apply.  A lot of the best cards require a $5k minimum CL (eg visa sig).

[Kozmo]

Right on-that makes sense.

The more and more I think about it I might actually like the CSP. 60k miles will get me to europe next summer which is nothing with the 40k signup bonus. Since southwest and AirTran merged i should be able to convert UR points to Airtran right?

[randeman]

---

@Kozmo wrote:
@ randeman: I've thought about it but again United always seems to be the most expensive around here. Case in point:

In October ill be flying from Detroit to San Fran. Again, I typically fly coach though wouldn't be against first class of course. But the prices are as follows:

Air Tran $303
Delta $430
United $470

Yes, air tran has a stop as opposed to the other 2 which are direct. But it only adds about 1.5 hours to the trip and with two of us flying it saves $260 which we would rather spend once were there.

Just one example I know. And yes we make decent money as I didn't factor in her income but I guess it's just how I was raised. I'm not cheap or anything I would just rather use the money for something else like a better room or something.

@Crashem: hard to say off the top of my head but right now me and DW have our own cards as we got married earlier this year and haven't transitioned much of that yet. But myself: probably at least $1k a month but likely more as I do use my Debit a lot and will not be doing so as much. But again ill also be adding DW to the account so between the 2 of us we could probably do no less than $3k if we really wanted to.

In terms of the Amex it was my first cc that had an original limit of maybe $300 maybe in 2006?. I used it a lot early in college but not much In the last 4 years. It just doesn't have much in rewards unless I get offers like "spend $75 as Costco and get $25 statement credit"- or something to that effect. I used it recently just for the sake of it. I'm sure I can easily ask for a CLI and may do so but I also may PC to something else if needed. But obv not delta since I wouldn't get the miles.

For the CSP- does it make sense to get it for the type of travel I do? I noticed my typical Airliners aren't there for the direct UR transfer but I could always book through the UR mall if needed to for my choice of airline. But it seems the full benefit would be to transfer the points directly to United or other select airliners for max return.

---

Understandable.  I work at Newark Airport and I can tell you that, with their fortress hub here, fares are significantly higher than any of the other New York airports.  Fortunately, I have at least two other options (JFK and LaGuardia).

I can also tell you that once the US/AA merger goes through, there will be very little in the way of "cheap" air fares anymore.  Competition is minimal.  And that is ABSOLUTELY the way the airlines want it.  Ten years ago (and for a few years previously), Southwest could always undercut everyone else's fares.  Why?  Because they hedged their fuel costs.  In other words, they had contracts which allowed them to purchase Jet fuel A at lower prices than the other airlines.  But those contracts ran out and Southwest had to pay more for fuel, thus they had to raise fares.  On the rare occasions that I check their website when shopping for cheaper fares, I almost never see them cheaper than anyone else, and sometimes significantly more.

Escape my work better for you, or the Delta Amex.

[Crashem]

OP,

In terms of the right card, based on your comments, it is a fairly complex decision as to what will maximize benefits.  I'll give my recommedations first.  I'll try to explain my reasoning afterwards but not sure if I'll do a good job given the complexity of the thinking and my ability to write it up.

Based on your monthly spending of up to 3k and main goal of "helping" out with upcoming Europe trip, I would not be looking for which card fits my spending the best, but which card gives me the biggest bang for my spending.  In other words, I would be looking at which cards offer the most and most useful bonus points.  If that is the case, then the contenders are more obvious; Starwood Preferred (30k), CSP (40k), Barclay Arrival (40k).

Why do I say go for the bonus miles?  Think of it in this way.  Value of card bonus wise can be measured in a few ways:

1) Points earning structure: How many points/miles/cash back you earn per dollar spent?  You look at things like category that get more than 1% etc. and see which matches your spending pattern the most.

2) Value of points/cash back/miles:  Not all points/cash back/miles are equal.  Your goal is to get over 1 cent per point/cash back/miles in value.  Typically, only miles can offer a method to get much higher than 1 cent per point value, but even then primarily if you use it to get business/first tickets.  The important thing however is that you have enough points etc to actually use the points.  This is the big gotcha in airline miles and even with cash back cards as they may have certain minimums.

So in any case, your goal is to get as much value per dollar spent.  The overall goal should be at least $2 cents per dollar spent.  Since your annual spending is around $36K, your goal is to get $720 worth of value minimum.  Airline miles are less useful to you, as your spending level makes it very difficult for you to get tickets unless you are willing to wait a couple of years or so and have very flexible schedule.  Basically, the bonus cards give you so much points right away, it is hard to beat their value at your spending level.

So given your profile and assuming you can qualify for any card, I would recommend you get 2 cards:

1) AMEX Starwood Preferred: starwood points are extremely valuable/useful, but no bonus point category.  However the main reasons to get this card is two fold.  One, the bonus points are great and 30k and 30k is enough to be useful.  2nd, the AMEX will be backdated and be helpful for your credit.

2) Either Fidelity 2% card or take your pick from one of the other cards that best match your spending among the cards with good bonuses.

[HiLine]

I'm assuming you're looking for a card to put regular spending on. If you only fly Economy class, it will be hard to justify airline loyalty cards with annual fees since those cards will not return more than a 2% everything card such as the Fidelity Amex. So you should aim for a transferable points/hotel loyalty card.  The SPG is a great card for hotel stays since SPG points are redeemable at a higher rate than 2 cents per point - you should definitely take this card into account. 

If your goal is sign-up bonuses, aim for both the CSP and the United Explorer - together these cards will give you around 100k United miles, and it won't be too difficult to earn the rest of the needed miles via regular spending or applying for a Chase business card. 

[Kozmo]

Well, in doing more research about United it does help that they have loyalty programs to boot. For example their dining rewards gives 5 miles for every $1 spent at participating restaurants and all you do is type in your zip and it gives you participating places. On a quick check I noticed 5 places we routinely dine out to and that's just in my neighborhood.

So, if I use a CSP and attach it to this program I will get 5 united miles per $1 spent and then 2 UR points per $1 spent making it 7 miles per $1 spent if using United spexifically. Or if my freedom happens to have a restaurant category for one quarter it would be 10 miles per $1 spent for that quarter. So it seems pretty easy to rack up united miles if UR points are a 1:1 transfer.

My brain is fried!