topic Re: Does "preferred" really mean anything? in Credit Cards

Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:01:26 GMT

My first (and only) credit card is a Chase Sapphire Preferred, and I have just noticed a lot of cards have the word "preferred" in the name. I was just wondering, does that have any real world meaning, or is it just a way to make a card company's customers feel special?

Re: Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:04:05 GMT

well there is a regular sapphire and the sapphire preferred which offers benefits and AF on top of the regular sapphire. also, with amex, the blue cash preferred has an AF and more benefits than the regular blue cash and same with the everday preferred versus everyday.

Re: Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:04:49 GMT

so, in a nutshell, preferred does typically have a meaning with additional benefits and commonly an AF

Re: Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:06:07 GMT

Except in the case of Citi, where Preferred is (AFAIK) the lowest of their Thank You cards

Preferred<Premiere<Prestige

Re: Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:08:20 GMT

Ahh that prestige. Doesn't belong in a wallet, it belongs in a museum lol. I'd pay the annual fee just to look at it lol

Re: Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:10:48 GMT

you got me there, tortoisewins. i don't play with citi so, aside from what i read here, idk their products well.

Re: Does "preferred" really mean anything?

redpat — Sun, 28 Feb 2016 21:11:31 GMT

Big difference in Amex EDP vs. ED

Big difference if CSP transfer ur points. CS in cashback.

Re: Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:18:13 GMT

As has been stated, it's typically a tier indicator within a product family.

In most cases, the "Preferred" is a step up from the regular version of the card, and as such, tends to have an AF.

Out of the cited examples, though, there aren't stricter UW requirements, it's just a more robust version of the base product.

Re: Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:25:32 GMT

My take would be that essentially the use of the word "preferred" is more to make the customer feel like they're special.

You can call a card whatever you want, but at the end of the day what matters to most of us is what the card can do - not what words are printed on the front.

A good example is the "Black Card", formerly Barclays "Black Card" Visa... now it is a MC and has it's own pretend company, though still issued by Barclays. It's got a high AF, not anything special perks, but kind of plays on the social prestige of American Express' Centurion card which is commonly called 'the black card', also has a high AF, and does include some neat perks if you are lucky (and wealthy) enough to be invited to get one.

Re: Does "preferred" really mean anything?

Anonymous — Sun, 28 Feb 2016 21:29:33 GMT

the name "preferred" is obviously to make the customer feel better about paying the AF but the "preferred" lineup (I'm most cases) is an upgrade to the stock version. banks use words like that to make you feel more valued so you swipe it more (thus making them more money)

Re: Does "preferred" really mean anything?

UncleB — Mon, 29 Feb 2016 10:16:18 GMT

This is an interesting thread...

I'll just add that if Citi's lowest card is now called 'Preferred' they have definitely changed it around from the old days. Back when they were still 'Citibank', their entry-level cards were referred to as 'Classic', and their Gold cards were referred to as 'Preferred'.

I got my own 'Classic' Visa upgraded to Gold, and the new card even had a different account number (specifically, the BIN was different, with some other digits remaining the same as before). As for underwriting, unlike the usual (at that time) instant CLI, the upgrade took several days to process, and a HP was required.

The card looked like this:

I actually thought it looked quite 'cool' myself. Also, back then to have a Gold card the minimum credit line was $5k. Of course eventually the 'Gold' moniker came to mean nothing, and now you can purchase a 'Gold' prepaid card at Wal-Mart. For a time, 'Platinum' meant something, but now it's about as special as a gold card, with many institution's most basic cards being 'Platinum'.

I suspect it won't be too long before WMC/WEMC and Signature Visa get devalued as well. I wonder what the next top card level will be?

(Sidenote: Amex charge cards seem to be an outlier here... their card levels have remained static over the years.)

Re: Does "preferred" really mean anything?

redpat — Mon, 29 Feb 2016 12:45:03 GMT

They can call it anything they want too as long as I get more rewards, so they can name it the Snob CC, Exec CC, or the Dirtball CC, I'll take it as long as it works and the rewards are gooood.

BTW, Barclay Luxury cards, total RIPOFF.

Re: Does "preferred" really mean anything?

Mattopotamus — Mon, 29 Feb 2016 13:38:03 GMT

Most lenders "preferred" is a higher tier card. The CSP is a very saught after card.

Re: Does "preferred" really mean anything?

Anonymous — Mon, 29 Feb 2016 14:05:31 GMT

@Anonymous wrote:
My first (and only) credit card is a Chase Sapphire Preferred, and I have just noticed a lot of cards have the word "preferred" in the name. I was just wondering, does that have any real world meaning, or is it just a way to make a card company's customers feel special?

Preferred is meant to serve as a reminder for you to prefer that card. Since preferred cards almoast always have an AF, you need to use them a lot to offset the fee.

Re: Does "preferred" really mean anything?

galahad15 — Mon, 29 Feb 2016 14:27:36 GMT

In MHO, a preferred card in my mind does not have an AF, lol Cards like the CSP and virtually any card with an AF do not personally make me want to app for them, I would rather have a card with a single-digit low or fixed APR, either with or without rewards I guess maybe I'm too old-school, to want cards like the CSP and similar...

Re: Does "preferred" really mean anything?

Anonymous — Mon, 29 Feb 2016 14:51:54 GMT

@UncleB wrote:

I suspect it won't be too long before WMC/WEMC and Signature Visa get devalued as well. I wonder what the next top card level will be?

(Sidenote: Amex charge cards seem to be an outlier here... their card levels have remained static over the years.)

Visa Sig is already surpassed by Visa Infinite. Theres only one bank in th US offering an Infinite Visa, and the card kinda sucks. Though international Visa Inifinite cards are awesome.

So far Mastercard doesn't have a higher tier in the public market yet.

Re: Does "preferred" really mean anything?

takeshi74 — Mon, 29 Feb 2016 14:55:17 GMT

@Anonymous wrote:
Does "preferred" really mean anything?

Not in and of itself. Don't rely on just one word by itself. Be aware of the features and benefits of any product and how well it suits you versus how it is labeled.

@galahad15 wrote:
In MHO, a preferred card in my mind does not have an AF, lol Cards like the CSP and virtually any card with an AF do not personally make me want to app for them, I would rather have a card with a single-digit low or fixed APR, either with or without rewards I guess maybe I'm too old-school, to want cards like the CSP and similar...

Why? Are you carrying balances? If so, work on getting out of that.

Definitely consider total cost/benefit and not just AF. With sufficient spend it's certainly possible to have rewards that greatly exceed AF. All of my cards do so or else I wouldn't have them.

Re: Does "preferred" really mean anything?

galahad15 — Mon, 29 Feb 2016 15:15:05 GMT

@takeshi74 wrote:

Why? Are you carrying balances? If so, work on getting out of that.
Definitely consider total cost/benefit and not just AF. With sufficient spend it's certainly possible to have rewards that greatly exceed AF. All of my cards do so or else I wouldn't have them.

As far as the question on carrying balances, the answer would probably be both yes and no. Some cards with lower APRs, especially non-promo single-digit APRs, I usually tend to revolve a balance on. There are a few cards I PIF, mostly rewards cards. Then there are cards with higher APRs that have some good 12-15-18 month 0% APR promos, that I am carrying balances on.

I guess in the end, maybe it all comes down to personal preference -- IME, I would rather pay small amounts of interest on a revolving balance with a card with a super-low APR than pay an AF on a card with no balance or that is PIF. YMMV.

Re: Does "preferred" really mean anything?

UncleB — Mon, 29 Feb 2016 15:31:22 GMT

@galahad15 wrote:
@takeshi74 wrote:

Why? Are you carrying balances? If so, work on getting out of that.
Definitely consider total cost/benefit and not just AF. With sufficient spend it's certainly possible to have rewards that greatly exceed AF. All of my cards do so or else I wouldn't have them.
As far as the question on carrying balances, the answer would probably be both yes and no. Some cards with lower APRs, especially non-promo single-digit APRs, I usually tend to revolve a balance on. There are a few cards I PIF, mostly rewards cards. Then there are cards with higher APRs that have some good 12-15-18 month 0% APR promos, that I am carrying balances on.

I guess in the end, maybe it all comes down to personal preference -- IME, I would rather pay small amounts of interest on a revolving balance with a card with a super-low APR than pay an AF on a card with no balance or that is PIF. YMMV.

+1000

There is nothing wrong with occasionally carrying a balance; sometimes I do myself, and it's not a cause for concern or 'introspection' of any kind. It's simply a difference in priorities and goals. I never judge those who feel differently, and I expect the same - especially on here.

That being said, I feel it's a shame this seems to somehow repeatedly get injected into threads that are regarding completely different topics.

Re: Does "preferred" really mean anything?

galahad15 — Mon, 29 Feb 2016 15:36:25 GMT

@UncleB wrote:

+1000

There is nothing wrong with occasionally carrying a balance; sometimes I do myself, and it's not a cause for concern or 'introspection' of any kind. It's simply a difference in priorities and goals. I never judge those who feel differently, and I expect the same - especially on here.

That being said, I feel it's a shame this seems to somehow repeatedly get injected into threads that are regarding completely different topics.

Oops sorry my bad, I didn't mean to threadjack I will be sure to refrain from further commentary about carrying balances, on this thread, thanks for the helpful reminder.