Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
Re: Is the Chase Sapphire Preferred worth carrying permanently?
[ Edited ]

bs6054 wrote:

Open123 wrote:

 

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.

 



Not sure what you mean here.  Cap One 1.5% cards, for example, are uncapped, as is Fidelity Amex.  Off hand, the 5% revolvers and the BCP/BCE grocery cap are the only capped ones that come to mind, although I am sure there are others.

 

But I generally agree with the analysis.   Something recent on another forum stuck in my mind about relative value.   The poster said that he spends about $40K a year, and if he used a 2% card that would generate $800, which he would hardly notice.  Spent correctly on miles cards, it would transform a trans-ocean vacation flight from coach to business or first, a much more memorable experience.


Mainly, what I mean is that with higher spending, Amex and Chase will have rewards on all points earned for the year.  For example, the new Bus Blue (after the 3rd year) will confer 30% bonus on all MR points earned.

 

So, let's say you spend $100,000 total, this will be a 30,000 MR point bonus.  MR points redeemed for international business flights selectively can result in a return of 5%.  The bonus MR, the promo transfer bonuses all add up.  In this example, 2% of $100k is $2,000.  Not bad!  

 

But, 130,000 MR points can be redeemed for $10,000 in airfare, if done opportunistically.

 

PS - Also, the issue is that with business spending (paying venders) is so high that issuers other than Amex or Chase will not be able to accomodate as readily.  For example, for a business Amex charge, revolving $50K per month for vendors is much easier to attain than a CL from other issuers.