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Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
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Re: Why or How is the CSP so great?


bs6054 wrote:

Open123 wrote:

Duncanrr wrote:
I don't get how you can rotate signup bonuses? Are you making a string of new accounts?

Basically, instead of staying loyal to a single card, allocating what you normally spend to fulfill spending requirements for sign up bonuses.

 


But the answer to Duncanrr is also "Yes".  You apply for new cards with sign-up bonuses, spend the required amount, and then apply for another.   So you create new accounts, but Open123 was referring to say 4 good bonuses a year, well within the app-o-mania of some we see here.


Right, and alternate between the CRs.  Amex on Ex, Chase on Equifax, and Barc on TU, etc...

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
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Re: Why or How is the CSP so great?

[ Edited ]

Open123 wrote:

A few Observations from my experience with using credit cards.

 

1.  All things being equal, for the initial $10k - $12k in spending, the maximum return is to cycle sign up bonuses.  For instance, sign up for a 50K ($500) bonus, and spend the $3k.  Then, sign up for another similar sign up bonus, and spend another $3K.  Rinse and repeat for the entire year, or until all sign up bonuses are exhausted.  This will maximize the return on the initial $10K spending—irrespective of whether or no annual fees are waived.  Of course, start with the highest sign up bonus for waived annual fees, then progress to the fee ones.

 

2.  When no longer eligible for sign up bonuses, if spending is around $10K - $15K, then go with no annual fee cash rewards cards with rotating and specialized categories.  With the level of spending, fees make no sense, and caps aren’t an issue.

 

3.  If spending above $20K, then look for annual free travel rewards cards.

 

To me, it’s that simple. 

 

CSP, SPG, or a variety of other annual fee cards are a tremendous value if one spends in excess of $15k - $20k, but make little sense for one who spends only $10K.  The latter will never recoup the cost of annual fee, let alone reap any benefit from expenditures.

 

For $10K spending (say, 2% Fidelity no fee Amex), we’re talking about $200 bucks.  In my view, doesn’t really matter what rewards you have, the cash back will be approximately $200 bucks give or take.

 

Makes no sense to pay an annual fee for $200 bucks.  So, pretty cut and dry that no fee cash rewards cards are the best option for low levels of spending.

 

In the end, for $10K spending, we're talking about $200 in rewards.  Some people tip more than that in a single dinner.  Low spending, forget about rotating categories, or 2% here and 5% there, just rotate sign up bonuses if you can.  At least, this way you'll gather a few thousand.

 

PS - Four $500 sign up bonuses (plenty of them last year) will net $2,000.  You'd have to spend $100,000 on the 2% Fidelity Amex to receive $2,000 cash back.  Think about that for one second.


+1. This is right on-target. People need to keep in mind that the CSP was designed as a high-end card for those who travel AND have decent sized annual spends. When it first came out, its target audience were people with an income at or above 120k. Obviously they've relaxed this quite a bit since then, but the general premise remains.

 

If you're a low spender (which I agree is 15k or below, while mid-level is 20-30k), the CSP probably won't net you much in the way of rewards when compared to other options. Chase knows this, and I'm guessing this is part of the reason they've lowered their criteria. For someone charging only 10k annually, after the AF you'll net very little. Your loss is their gain.

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Contributor
pkosheta
Posts: 99
Registered: ‎08-13-2008
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Re: Why or How is the CSP so great?

For a low spender, aka 10k or less focus on quality customer service, I'd rather get a few bucks less on rewards and and good customer service than a few more dollars and being stuck on hold or dealing with a snotty cust. rep that hangs up or disconnects for the fun of it.  Dropping CSP to regular cs is a solid option.  I plan to do it soon.  u only lose the points dividend, the transfering of points, an extra point on travel, and the metal card (GASP!!!).  but if ur a 10k or lesser a year its not in the math to keep it.  but dont fret, The sapphire benes like trip delay insurance are rare for credit cards.  Amex won't even cover that.  Plus when I call they know its me.  My last name is really weird to pronounce but they only got it wrong once. That's nice, FREE customer service.  And besides 2 points at restaurants isn't that bad.  Sure freedom has more 5% cats.  But if u have a few other 5% cards u will lose just a few pennies, but you'll be making a lot of sense.

Age 29
AU- United+ Visa 33k, *97. GM MasterCard 15k, *95.
Individual- PenFed Plat Rew 7k, *08. Amex Blue 6.7k, *12. Hilton Amex 5.5k, *12. Chase Sapphire 15k, *12. U.S. Bank Cash+ 12.3k, *12. Barclays Priceline.com Rewards Visa 11k, *13. Citi Hilton Reserve 7k, *13. Club Carlson Premier 9k, *13.
Regular Contributor
mkm77
Posts: 155
Registered: ‎08-25-2010
0

Re: Why or How is the CSP so great?

This card can be HIGHLY VALUABLE. I needed to book a trip to Asia and the airport I wanted to fly into was over $6,000 for a business class ticket. You can convert your points 1 to 1 and obtain that ticket for 120,000 miles on United. 

Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
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Re: Why or How is the CSP so great?


mkm77 wrote:

This card can be HIGHLY VALUABLE. I needed to book a trip to Asia and the airport I wanted to fly into was over $6,000 for a business class ticket. You can convert your points 1 to 1 and obtain that ticket for 120,000 miles on United. 


The UR program is the only one I know of that allows for 1:1 transfers to UA.  If you're near a UA/Cont Hub, this is an immense benefit.  

 

The 120K miles business to Asia is one of my favorite redemptions.  Last year, I was able to upgrade to first class for an extra 15,000 miles, which I transferred from UR.  $150 cash redemption or first class upgrade?  I'll take the latter any day of the week and twice on Sundays.

Established Contributor
FutureBillionaire
Posts: 650
Registered: ‎12-12-2012
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Re: Why or How is the CSP so great?

I travel within the United States mostly, since I lived overseas when my Dad was in the military.  I spend about over 20k a year, with a good portion of that being on credit cards.  I guess this card would be more beneficial to me if I travelled on any airline other than Southwest.  Thanks for clearing this up for me. I really thought folks were missing the boat; it just turns out that I don't belong on this boat.

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
0

Re: Why or How is the CSP so great?


FutureBillionaire wrote:

I travel within the United States mostly, since I lived overseas when my Dad was in the military.  I spend about over 20k a year, with a good portion of that being on credit cards.  I guess this card would be more beneficial to me if I travelled on any airline other than Southwest.  Thanks for clearing this up for me. I really thought folks were missing the boat; it just turns out that I don't belong on this boat.


Have you checked out Chase's Southwest card with 50K mile bonus?  That's a lot of rapid rewards!

Established Contributor
Cdnewmanpac
Posts: 766
Registered: ‎01-16-2012
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Re: Why or How is the CSP so great?

just fyi, ur points convert 1:1 to southwest rr points. I had the southwest card, but just got csp and closed southwest. I fly us air or American maybe once a year. with southwest card, those flights earn 1 rr point. with csp those flights earn 2 ur points, which I can use to top off either sw or ua accounts. more flexible, plus you get restaurant points. or you could get southwest card, get the bonus, close in a year and then get csp.
In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
0

Re: Why or How is the CSP so great?


Cdnewmanpac wrote:
just fyi, ur points convert 1:1 to southwest rr points. I had the southwest card, but just got csp and closed southwest. I fly us air or American maybe once a year. with southwest card, those flights earn 1 rr point. with csp those flights earn 2 ur points, which I can use to top off either sw or ua accounts. more flexible, plus you get restaurant points. or you could get southwest card, get the bonus, close in a year and then get csp.

Right, get SW for 50K miles, UA for 50K miles, and round it off with CSP the next year while cancelling the SW and UA when fees are due.  This way, maximize flexibility, and have UR points to transfer at the user's discretion and as needs arise.

 

Sometimes, rather than focussing purely on "fees," one needs to focus on "what you get."  Price is what you pay, but value is what you get.  For example, in the US subsidized phone market, the worst deals are the "free" phones, since the 2 year contract price is the same.  You're better off paying for a nicer phone and earning a higher subsidy from the phone company.

 

Same concept, all things being equal.  Reminds me of something Wilde once wrote, "a cynic knows the price of everything, and the value of nothing."

 

 


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