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Regular Contributor
cowboyguy
Posts: 197
Registered: ‎07-26-2012
0

Isn't AF worth it for all cards?

Chase Southwest Card - Gives 6000 bonus points on anniversary which is worth $100. Annual Fee is $99.

 

Amex Delta Gold - I think gives 10,000 bonus points on anniversary which is worth$100. Annual fee is $95.

 

The list goes on and on for different airlines, hotels etc.

 

The bonus points almost always cover the AF. My question is, why do people seem to be bothered all the time about the AF for credit cards?

Walmart Discover $10,000... Chase SW $8,500... Freedom $7,000... CSP $6,000... Amex Delta $3,000... Amex BCP $2,000... Local CU $1,500...
Frequent Contributor
cqdealer711
Posts: 323
Registered: ‎02-17-2013
0

Re: Isn't AF worth it for all cards?

[ Edited ]

my guess is that not all AF cc's have benefits that outweight the fee itself.



Starting FICO Score: 10/1/12--EQ 512 | TU 492 | EX 524
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Frequent Contributor
GaTech
Posts: 374
Registered: ‎02-10-2013
0

Re: Isn't AF worth it for all cards?

AMEX Delta Gold gives 10,000 points each year?????

I need to look into this :smileyhappy:
As of 1/10/2014 EX FICO - 748. EQ FICO - 728. Trans FICO - 755

WellsFargo - $3,000 AMEX BCE - $18,000 Chase Freedom - $4,000



Frequent Contributor
w20031424
Posts: 360
Registered: ‎10-17-2012
0

Re: Isn't AF worth it for all cards?

[ Edited ]

1. Because there are dozen's of no AF card that gives you a fat bonus. For example, Barclay's NFL $300 opening bonus. 

So people become picky.

 

 

2. If people's spending pattern has changed and the AF no longer justifies itself, people sometimes have to cancel the card, which hurts, emotionally and FICOly. And this doesn't apply to no AF card.

Fide Amex 15K | Barclays Reward 3.5K | Citi Forward Student 5K | Discover IT 12.8K | US Cash Reward 6K | GE Paypal 5.5K | Wal Discover 6K | CapOne 3.5K | Kohl's 0.3K
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HiLine
Posts: 3,176
Registered: ‎10-19-2012
0

Re: Isn't AF worth it for all cards?


cowboyguy wrote:

Chase Southwest Card - Gives 6000 bonus points on anniversary which is worth $100. Annual Fee is $99.

 

Amex Delta Gold - I think gives 10,000 bonus points on anniversary which is worth$100. Annual fee is $95.

 

The list goes on and on for different airlines, hotels etc.

 

The bonus points almost always cover the AF. My question is, why do people seem to be bothered all the time about the AF for credit cards?


I guarantee you, you are not looking at a representative sample of credit cards that charge annual fees. Most cards of this type do not offer anniversary rewards, but rather require you to make a significant level of spending to make enough rewards to offset the annual fee. 

 

And BTW, the Delta Gold does NOT give you annual bonus points.

Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
0

Re: Isn't AF worth it for all cards?

Problem is that airline miles card earn only "1" mile per dollar spent for non airline purchases.  Other cards are more valuable for non-bonus spending.

 

At bonus spending, CSP (and others) earn 2X for all travel with points that can transfer to SW, UA and others.  So, aside from buying 6,000 miles for $99, there is *NO* rational reason to ever use the SW or Delta card, since a plethora of other travel cards all earn superior rewards.

 

Only reason for a airline card are the premium high annual fee ones with special privileges, e.g. UA Club, Delta Reserve, Citi Exec AA.  And, only if you have brand loyalty and fly the ariline almost exclusively.

 

On the surface it appears to be a good deal, but it really isn't if you have other options.

Valued Contributor
bribro
Posts: 1,367
Registered: ‎04-20-2012
0

Re: Isn't AF worth it for all cards?

It's all about the opportunity cost. For some people, they can get better than a 1:1 value when offsetting the AF through retention offers, so the thought of only breaking even doesn't seem like a good deal. For others, a card takes up a a "slot" that could otherwise be occupied by a better card (common with Chase).
TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)
Regular Contributor
jlfce1
Posts: 142
Registered: ‎05-16-2013
0

Re: Isn't AF worth it for all cards?

Not all cards have rewards\benefits. I am just about to close my last AF sub prime card. 1k limit no rewards. It did the job for rebuilding but now that I have prime cards, there isn't a point in paying an AF for a 1k limit, no rewards.
Amex BCE 24.5K | BofA Cash Rewards 15K | CSP MC 13.5K| Chase Freedom 7.5K | Discover IT 3K
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HiLine
Posts: 3,176
Registered: ‎10-19-2012
0

Re: Isn't AF worth it for all cards?

I would gladly take an airline card whose annual reward outweighs the annual fee, because the card often comes with pretty good perks, such as 20% discount on in-flight purchases, priority boarding, free checked bags, and eternal duration of loyalty miles. Only useful if you fly with the airline company, of course. Why would you get the card otherwise? 

Valued Contributor
bribro
Posts: 1,367
Registered: ‎04-20-2012
0

Re: Isn't AF worth it for all cards?


HiLine wrote:

I would gladly take an airline card whose annual reward outweighs the annual fee, because the card often comes with pretty good perks, such as 20% discount on in-flight purchases, priority boarding, free checked bags, and eternal duration of loyalty miles. Only useful if you fly with the airline company, of course. Why would you get the card otherwise


Sign-up bonus. :smileyhappy:

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)

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