to pay or not to pay? (CSP AF that is)

samset93 · ‎05-13-2013

For all the credit card gurus out here: I was just recently got approved for the CSP (5k limit) and ever since I got it in the mail last week I have been wondering 12 months ahead to when the AF would hit.

I'm 20. I go to school full time and work part time. I'm making an alright amount of money (considering the type of work that I do, hrs worked/week, my expenses (no rent, insurance, or loans I need to pay) and how old I am; almost 20k last year, could be 35k if working full time)

So here are my options:

Suck up and pay the $95 AF. I could easily fit in the AF in my yearly expenses. (After all the point transfers, US call center, and the metal card are worth something)
Downgrade to regular sapphire. I'm not exactly the traveler type (still 2 more yrs of undergrad) and don't spend enough money to justify the AF. My other current CCs are good enough to cover my spending habits.
Close the CSP and consolidate the CL to my Freedom card. and hopefully make it a Visa siggy (as this is my everyday card).
Apply for the regular Sapphire before the 12 mo period and consolidate the CL from CSP before closing it (so I can still get the $100 sign-up bonus), taking an AAoA and inquiry hit as well as chance of denial from Chase.

I do plan on traveling to SE Asia to visit old friends and family after I graduate and get a steady full time job (hopefully, if my then work situation allows; although that might not be until 2-5 yrs down the road) So any thoughts or maybe a 5th option?

grateful for the knowledge as always,

Sam

somnipotent · ‎05-13-2013

What's the APR on the CSP vs the Freedom? Mine's currently 15.24% for the CSP and 19.99% (0% promo right now) on the Freedom. Doesn't matter if you PIF all the time but in the event you need to carry a balance it could be very important. The choice is ultimately up to you. My wife and I eat out at resturants a lot so the 2% works for me. Also, the CSP was my "I've arrived" card. While I did have an AMEX PRG prior, I felt that being approved for such a coveted card (at least on myFico) my credit recovery was good enough to go for the ultimate goal of a mortgage. And finally, I prefer the metal card over the plastic

samset93 · ‎05-13-2013

I always PIF so the APRs are a less of a factor for me. If i ever need to carry a balance I'd probably apply for a 0% apr intro card or put it in my 12.9% CU Visa.

Thanks for the input though, I do ~~like~~ (that's an understatement, lol) LOVE the metal feel of the card, but it might not be enough to justify the AF

navigatethis12 · ‎05-13-2013

If you don't plan on using the money, it's a waste to keep it after the first year. You would have to spend 9500 on it just to make back the annual fee or 4570 in the 2% categories. You would have to spend at least double that to make it worthwhile, otherwise you aren't gaining anything by keeping it. I would say option two or three. I don't see $100 as enough to get a hard inquiry and new account on a credit report.

bribro · ‎05-13-2013

Option #2, or option #3 if you're not inquiry/AAoA sensitive. I think inquiries/AAoA hits would be better spent on more lucrative sign-up bonuses, so would lean toward option #2.

samset93 · ‎05-13-2013

@bribro wrote:
Option #2, or option #3 if you're not inquiry/AAoA sensitive. I think inquiries/AAoA hits would be better spent on more lucrative sign-up bonuses, so would lean toward option #2.

Thanks for the inputs! appreciate it.

Is consolidating CL warranties a HP? I'm leaning towards combining the 5k to my freedom but a bit concerned about switching it to a siggy (from the regular/platinum visa now). Do they always upgrade to Visa siggy if your limit is over 5k? or is it a YMMV kind of thing?

*PS: I think I messed up trying to quote the previous reply. Still learning

somnipotent · ‎05-13-2013

mind you, you do get a 40k UR credit to your account after the first 3k you spend. You can apply that credit to your balance and that right there is 4 years worth of AF covered. Worth up to $500 in travel rewards when redeemed on the UR portal.

longtimelurker · ‎05-13-2013

@somnipotent wrote:
mind you, you do get a 40k UR credit to your account after the first 3k you spend. You can apply that credit to your balance and that right there is 4 years worth of AF covered. Worth up to $500 in travel rewards when redeemed on the UR portal.

Right, but the OP has already got that credit. So the question is, next steps 12 months from now!

samset93 · ‎05-13-2013

@longtimelurker wrote:
@somnipotent wrote:
mind you, you do get a 40k UR credit to your account after the first 3k you spend. You can apply that credit to your balance and that right there is 4 years worth of AF covered. Worth up to $500 in travel rewards when redeemed on the UR portal.
Right, but the OP has already got that credit. So the question is, next steps 12 months from now!

That's true, I can use the 40k UR bonus for paying the AF. But I'd rather have the cash/transfer it to a airline/hotel loyalty program.

somnipotent · ‎05-13-2013

@samset93 wrote:
@longtimelurker wrote:
@somnipotent wrote:
mind you, you do get a 40k UR credit to your account after the first 3k you spend. You can apply that credit to your balance and that right there is 4 years worth of AF covered. Worth up to $500 in travel rewards when redeemed on the UR portal.
Right, but the OP has already got that credit. So the question is, next steps 12 months from now!
That's true, I can use the 40k UR bonus for paying the AF. But I'd rather have the cash/transfer it to a airline/hotel loyalty program.

You did say you were still in undergrad and a travel would be limited anyway until after the fact. Again, it's still your call. I'm in a situation where every card has a purpose and I can justify the AF because the rewards I get nullify it.