Valued Contributor
ryanbush
Posts: 1,292
Registered: ‎08-19-2012
Re: Is the Chase Sapphire Preferred worth carrying permanently?

Open123 wrote:

For spending ranging from $12k - $15k, I think the best are no fee cash rewards cards.  

 

To wit, all non bonus spending on 2% Fid Amex with specialty spending on Disc, Freedom, Forward, and the rest on US Bank Cash+ 5% categories.  Forex spending on the BofA Travel card with chip, no forex, and no annual fee for 1.5 rewards.  Avg roe should be about 3.5% - approx $450 - $500 per year.  

 

For higher spending, the fee travel cards are more compelling.  Mainly, because when spending increases, the most important aspect isn't the bonus spending, but not have caps on said spending.  All issuers have caps of some kind.  5% categories are capped at $1,500; Priceline bonuss capped at 2,500; etc...Amex and Chase are two of the only issuers who have 0 caps on regular spending.  For instance, let's say you pay vendors $100,000 per year.  MR points/UR points more valuable, or 2% cash?  When points get into the 100s of thousands, very valuable redemptions can be had which easily out paces 2%.  Moreover, Amex business blue Open has 30% bonus on all points earned.  

 

In my estimation, if one spends around $12k - $15k, cash rewards no fee cards are the best option.  For those who spend north of 30K, the annual fee rewards cards are a much more compelling value.  For those who spend 100k+, then only the Amex or Chase uncapped rewards would suffice.

 

As per the CSP, I think one who travels, dines, spends time abroad and spendings around $12k - $15k, there is no better value.


This, I just booked a plane ticket for my mom about an hour ago.  the cheapest published rate online was right at 900$  it cost me 25k Membership Rewards points converted to Delta Skymiles (1:1 rate on transfer bonus right now) that made the effective cash back rate on AMEX at 3.5% on all purchases, quite a bit better than any other card out there for all purchases.

 

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