topic Re: Will you keep CSP after the 1st year? Why? in Credit Cards

Will you keep CSP after the 1st year? Why?

vwgrrc — Thu, 07 Jul 2016 03:35:51 GMT

Hi all

I'm now still in the sign-up bonus period of my CSP. I know this is one of the best travel cards out there. But I don't see further usage even after the sign-up bonus period. My understanding is if I use it for travel purchases and redeem for travels, I can get (2% * 1.25 =) 2.5% back per dollor. I have my Discover Miles in its 1st year, 3% CB on everything. There're also other 3% travel cards with no AF. I want to know what reasons make people paying AF to continue using CSP. Will the card benefits justify the AF for you? How?

Re: Will you keep CSP after the 1st year? Why?

mongstradamus — Thu, 07 Jul 2016 03:51:04 GMT

I think you have to run the numbers on how much you spend on travel and dining,to see if it's worth the af. Also you have to look at what partners you would want to transfer to.

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 03:54:26 GMT

i'm a newbie here but i believe the appeal is in being to transfer ultimate reward points to the csp for redemption. so 5% from freedom, transfer over to csp for 25% bonus

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 04:04:14 GMT

@Anonymous wrote:
i'm a newbie here but i believe the appeal is in being to transfer ultimate reward points to the csp for redemption. so 5% from freedom, transfer over to csp for 25% bonus

The big value proposition for CSP isn't using them at 1.25 cents per point on the Chase Travel portal. It's actually transferring them to partner hotels and airlines and using them in their loyalty programs. Depending on the redemption, it's possible to get much more than 1c per point. Often people quote around 2 cents per UR, but in some cases 3 or 4+

Then transferring from Freedom helps, but as Freedom is capped, it's not all that significant a source

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 04:13:55 GMT

I like the primary auto rental insurance coverage. I used to pay Amex $16/rental for that. Now it is free on CSP. I rent at least a couple times a year for little weekend road trips. So right there alone pays for itself. I also have the Freedom so I am able to squeeze a little bit more from it as well.

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 05:04:21 GMT

It's being able to transfer to partners for me. I also combine with with the Freedom and Freedom Unlimited. Worth every penny of $95. The travel insurance is nice too, and even at worse case scenario cashing out isn't that bad.

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 06:23:29 GMT

I kept it for possible travel plans...but my flight to Ireland this year was paid for, I used NFCU card for getting Euros out of ATMS (virtually no fee) and charged everything else on the card. Didn't use CSP at all. I traveled a little last month and charged a couple of hotel rooms but it's basically been sockdrawered since April when I started getting 5% cash back on dining (I eat out a lot). First discover now freedom. Still, I have over $150 in UR points, so there's that. More than pays for the AF which I last did in January.

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 07:12:08 GMT

if you trust that points guy blogger, he claims you can squeeze 2.1 cents per UR point if you redeem them towards partner programs in the best possible way.

I use them for Korean Air miles for now, but let's be honest here. I'll probably end up keeping CSP even I'm not spending enough through it to make a net gain against the AF for 2 simple reasons:

1) it's my first dream card, personal pride to have finally squeezed in with Chase after they gave me the finger on my AARP app last summer

2) It's metal, and blue. I feel good handing it to cashiers, waitresses, and even swiping it at self-checkout kiosks.

Stupid reasons, admittedly, but they make it worthwhile even if my Freedom Unlimited + CSP UR-> miles doesn't end up being a tremendous value.

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 11:17:01 GMT

@Anonymous wrote:
It's being able to transfer to partners for me. I also combine with with the Freedom and Freedom Unlimited. Worth every penny of $95. The travel insurance is nice too, and even at worse case scenario cashing out isn't that bad.

Well, as a last resort it's not dreadful, but you certainly don't want to pay $95 (after the first year) for a card that is 2% on just dining and travel

Re: Will you keep CSP after the 1st year? Why?

kdm31091 — Thu, 07 Jul 2016 11:28:34 GMT

If you are just cashing out the points, there's no reason to be paying a $95 AF for basically 1% cash back, with 2% on a few things.

If you assume URs to be 2cpp, then it's a baseline 2% card, with 4% on travel and dining. These numbers are good and may be worth paying $95, but keep in mind you can get 2% base cash back at many places, and while 4% on travel/dining is not common, you can find 3% cards for these with no annual fees. None of this is to say CSP isn't worth it, but in my personal opinion, Chase has removed many of the benefits (annual dividend, 3x on dining one day a month, extra point for booking through Chase) while continuing to charge the same fee. It's a product that needs an update/refresh instead of more small cuts.

There are situations where the URs can be worth much more than 2cpp, and thus those numbers change, but they aren't common redemptions, and you want to assume a lower value rather than higher.

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 11:31:06 GMT

Because it's Metal.

That's why the 2 people I know have this card. Lol

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 12:21:42 GMT

@Anonymous wrote:
Because it's Metal.

That's why the 2 people I know have this card. Lol

I wonder how often they feel the thrill! Only when they use it or do they take it out at home and lovingly gaze upon its beauty?

I guess if it often enough, $95 a year is WAY cheaper than many ways of getting pleasure....

Re: Will you keep CSP after the 1st year? Why?

driftless — Thu, 07 Jul 2016 14:05:36 GMT

It is a great card for me. The bonus was nice but it will be my travel card for the foreseeable future.

Re: Will you keep CSP after the 1st year? Why?

Anonymous — Thu, 07 Jul 2016 14:11:27 GMT

They feel the thrill everytime they make a purchase.

Re: Will you keep CSP after the 1st year? Why?

vwgrrc — Sat, 09 Jul 2016 01:47:40 GMT

@Anonymous wrote:

The big value proposition for CSP isn't using them at 1.25 cents per point on the Chase Travel portal. It's actually transferring them to partner hotels and airlines and using them in their loyalty programs. Depending on the redemption, it's possible to get much more than 1c per point. Often people quote around 2 cents per UR, but in some cases 3 or 4+

Then transferring from Freedom helps, but as Freedom is capped, it's not all that significant a source

Can anyone give some examples of UR gets 3 or 4 per point? The best way I know now is transfer to Southwest. Repaid Rewards worth about 1.7-1.8c per point.

Re: Will you keep CSP after the 1st year? Why?

CreditMagic7 — Sat, 09 Jul 2016 02:00:43 GMT

@driftless wrote:
It is a great card for me. The bonus was nice but it will be my travel card for the foreseeable future.

Basically the same on this end. Not only that but the CSP is already cost me the Freedom Card that i reallocated over to the CSP instead of taking an INQ hit for an unknown CLI.

Now with the 5/24 diddle dattle rule and being an only Chase Card, it's still worth holding onto for me.