topic Re: Chop, Chop, Chop. Thoughts? in Credit Cards

Chop, Chop, Chop. Thoughts?

Broke_Triathlete — Tue, 29 Jan 2019 04:59:26 GMT

I thought about continuing my trimming of cards, especially now the bookkeeper is charging me an additional $25 per open account for the business. Plus, I'm thinking about going to CB 100% as I'm just not getting use out of the MR rewards that I thought I would. I have about 182K rewards points so far that I need to figure out what to do with.

At any rate. I'm thinking about chopping some more cards, especially if I haven't used them in years. Thoughts?

On The Chopping Block

Personal:

Local Credit Union Card - Haven't used in years

AMEX BCE

AMEX Platinum

AMEX Gold

Business:

Local Credit Union Card - Haven't used in years

Amex Simply Cash

Amex BBP

Already Chopped

Publix Credit Union

So doing this would leave me my QS, Uber and Discover for personal and Cap1 Spark for business. A lot less to maintain but that would be completely eliminating AMEX and I just got in with them a year ago.

Re: Chop, Chop, Chop. Thoughts?

NRB525 — Tue, 29 Jan 2019 08:28:21 GMT

Do you travel at all? That is 182k in MR points, correct? Finding a use for that in a rush will be interesting. Finding a use for that at a good redemption will take a bit of time, but be quite rewarding. We're talking the difference between $1,274 and $2,700, conservatively.

If you close all your AMEX cards, roughly a year in, you can expect not to get any other SUB from them if you re-apply. They don't take kindly to that anymore.

I would suggest you simply have not figured out where the value in your MR points is, and need to give yourself time to research this. Once you see that, you may be quite sad when all your MR-earning cards are closed.

I would suggest focusing on keeping the AMEX Gold and BBP, and the Platinum for the time being.

Close the Spark. Seriously. 2% is just not comparable to 2MR points.

Close the AMEX BCE, Simply Cash, and the Credit Union cards.

Re: Chop, Chop, Chop. Thoughts?

wasCB14 — Tue, 29 Jan 2019 09:31:28 GMT

Close Platinum and Gold if you don't travel much and get little value for your annual fees. Wait to close BBP until you have some sort of redemption plan.

If you have a Schwab account, a Schwab Platinum might be worthwhile to cash out at 1.25 cpp if you have no good options for mileage transfers. This is partly assuming you'd be eligible for a Schwab Platinum bonus and could meet the spend. *With your limited Amex history and several Amex accounts, it is a valid concern that Amex might refuse a bonus.* If you do use the Platinum perks despite getting poor MR value, your BBP then would be earning 2.5% on up to $50k spend and you could use it as a personal card (I and many others have found Amex doesn't really care about personal spend going on a business card).

If you want to go with cash back, why would you close BCE?

Re: Chop, Chop, Chop. Thoughts?

Anonymous — Tue, 29 Jan 2019 12:19:49 GMT

Maybe close 2 amex and keep 2 open for now. Closing all seems like burning the entire bridge. Those MR points, at least can get you more than 1000 usd.

Re: Chop, Chop, Chop. Thoughts?

Broke_Triathlete — Tue, 29 Jan 2019 12:36:11 GMT

@NRB525 wrote:
Do you travel at all? That is 182k in MR points, correct? Finding a use for that in a rush will be interesting. Finding a use for that at a good redemption will take a bit of time, but be quite rewarding. We're talking the difference between $1,274 and $2,700, conservatively.

If you close all your AMEX cards, roughly a year in, you can expect not to get any other SUB from them if you re-apply. They don't take kindly to that anymore.

I would suggest you simply have not figured out where the value in your MR points is, and need to give yourself time to research this. Once you see that, you may be quite sad when all your MR-earning cards are closed.

I would suggest focusing on keeping the AMEX Gold and BBP, and the Platinum for the time being.
Close the Spark. Seriously. 2% is just not comparable to 2MR points.
Close the AMEX BCE, Simply Cash, and the Credit Union cards.

The idea to travel is there, that was the reasoning for starting in the MR reward structure. However, my fear of flying since trashcanistan is just not shakeable at the moment, so the wife and I are stuck traveling in where ever our car takes us. I'm not in a rush per se', this all was literally just a thought that came to me last night. It's definitely something I'm going to think hard about regardless of what I do.

You're right about the SUB, and I wouldn't expect them to give me another one. I'm glad they're taking that stance too.

In regards to the Spark, is there a better CB option for business that is BK friendly? In 2018 I spent $138K in business expenses.

Re: Chop, Chop, Chop. Thoughts?

Broke_Triathlete — Tue, 29 Jan 2019 12:39:11 GMT

@wasCB14 wrote:
Close Platinum and Gold if you don't travel much and get little value for your annual fees. Wait to close BBP until you have some sort of redemption plan.

If you have a Schwab account, a Schwab Platinum might be worthwhile to cash out at 1.25 cpp if you have no good options for mileage transfers. This is partly assuming you'd be eligible for a Schwab Platinum bonus and could meet the spend. *With your limited Amex history and several Amex accounts, it is a valid concern that Amex might refuse a bonus.* If you do use the Platinum perks despite getting poor MR value, your BBP then would be earning 2.5% on up to $50k spend and you could use it as a personal card (I and many others have found Amex doesn't really care about personal spend going on a business card).

If you want to go with cash back, why would you close BCE?

Just posted my first response above, traveling is limited at this moment in time. I figured if we travel the $750 in AF would be easily covered. The grub hub and Uber Eats credit is a joke now with deliver costing anywhere from $6-$15 now...lol. That's for another post now.

I don't like BCE's method for the CB. Cap 1 I can use it whenever I want, for as much or as little, etc. They seem to have the easiest redemption's for rewards out there. I don't have a Schwabb account at this time. I need to look back into that though

Re: Chop, Chop, Chop. Thoughts?

Broke_Triathlete — Tue, 29 Jan 2019 12:41:01 GMT

@Anonymous wrote:
Maybe close 2 amex and keep 2 open for now. Closing all seems like burning the entire bridge. Those MR points, at least can get you more than 1000 usd.

That's what I was worried about as well. They just aren't growing with the BK on my reports (at least that's what they say). They wouldn't grow the simply cash at all ($6.6K) but then gave me a new biz line of $18.1K with the BBP. Still won't up that. I just redid a new round of CLI's and the Cap 1 (both personal and biz) and Disco grew nicely.

Re: Chop, Chop, Chop. Thoughts?

Loquat — Tue, 29 Jan 2019 12:51:18 GMT

OP, if you're not traveling then I would suggest that you find a way to unload those MR points and move forward with ditching the card. MR points serve a purpose when traveling and even so it still takes a LOT of them to do so. I'll go one further, in my opinion, they're only real value is when traveling internationally and even that can be tricky. The truth of the matter is that MR points takes a lot of planning and flexibility to see true value.

In the end you've got to do what's best for you. Good luck in your decision making.

Re: Chop, Chop, Chop. Thoughts?

Broke_Triathlete — Tue, 29 Jan 2019 12:55:49 GMT

@Loquat wrote:
OP, if you're not traveling then I would suggest that you find a way to unload those MR points and move forward with ditching the card. MR points serve a purpose when traveling and even so it still takes a LOT of them to do so. I'll go one further, in my opinion, they're only real value is when traveling internationally and even that can be tricky. The truth of the matter is that MR points takes a lot of planning and flexibility to see true value.

In the end you've got to do what's best for you. Good luck in your decision making.

Thanks for that post. We aren't traveling that much to be honest. We both work a million hours every week ahaha. I may close all the MR points and just do CB so if we do get around to a vacation I'll have a bunch of cash we can use instead of planning vacations around MR points.

Re: Chop, Chop, Chop. Thoughts?

digitek — Tue, 29 Jan 2019 13:38:13 GMT

@Loquat wrote:
OP, if you're not traveling then I would suggest that you find a way to unload those MR points and move forward with ditching the card. MR points serve a purpose when traveling and even so it still takes a LOT of them to do so. I'll go one further, in my opinion, they're only real value is when traveling internationally and even that can be tricky. The truth of the matter is that MR points takes a lot of planning and flexibility to see true value.

I agree with Loquat here, I do not like my rewards in MR. Most members of the board either love MR and are all in, or avoid all the MR earning cards. It is a personal preference thing, I guess, as MR can get you really great redemptions if you use them right, but they aren't as easy to use as straight cash.

If I were you I'd do what wasCB said and keep the BBP and just sit on the 182k MR points, they won't go anywhere or get devalued all that much and BBP has no annual fee so you can wait a few years before you cash out on your next travel whenever that is.

Re: Chop, Chop, Chop. Thoughts?

xaximus — Tue, 29 Jan 2019 13:52:10 GMT

Personally, I would keep the BCE as it's a decent card for CB. I would definitely dump the Platinum. The AF on it is too high if you don't travel. The Gold isn't bad but as before, if you aren't traveling and making use of the card, it may be worthwhile to dump it. I would recommend closing the card when getting close to the AF time. As far as the CU, I would hold onto that simply because if it's SD'd, there's no loss. I would actually hold onto both BBP/Simply Cash - they will grow over time. It may take some time but they will. How long has your BK been?

Re: Chop, Chop, Chop. Thoughts?

kdm31091 — Tue, 29 Jan 2019 14:16:56 GMT

I don't think the BCE reward structure is that great, but I would keep it open just to keep the Amex door open for now. It has no fee and has decent enough cash back. I would close the MR cards if you aren't going to be traveling. They just aren't good for much else and they're costing you money.

Re: Chop, Chop, Chop. Thoughts?

pinkandgrey — Tue, 29 Jan 2019 14:24:26 GMT

I have no super-savvy business answer for you, but I say close them if you don’t or can’t use them anymore. Straight up cash back is my preferred option as well. I want to trim too. But where to start......