topic Re: Do You Pay More Than 1k In AF? in Credit Cards

Do You Pay More Than 1k In AF?

Vash1 — Tue, 09 Apr 2024 01:32:17 GMT

Do you pay more than 1k in annual fees a year? And what's your ROI each year? I ask because I pay $945 but just from the card benefits I get over 1k back. I want to add the CSR for a visa infinite card but it may cross over with my platinum card. I may drop the gold after hitting the SUB and redeeming.

Re: Do You Pay More Than 1k In AF?

CreditCuriosity — Tue, 09 Apr 2024 02:20:25 GMT

Probably right around 1k a year.. 450$ ritz. Easily get benefit of that between 85k room and airline credits.. Delta cards of two 350ish(will dump both of them at end of 2nd year so Amex RAT doesnt get on me made sure payed two AF's. CSP $95(worth it mainly for Primary rental car insurance). 49 IHG car(free night certainly worth it), $50 NFCU card and sure i am missing another one I can't think about now. Overall ROI is worth it other than Deltas for me which were elevated sign-up bonuses but likely had a good ROI as 250k pesos from them

Re: Do You Pay More Than 1k In AF?

NoHardLimits — Tue, 09 Apr 2024 02:21:44 GMT

I pay close to $1500 in annual fees for 4 cards, but they all more than pay for themselves through the additional rewards/perks/credits. The Amex Platinum coupon book netted me almost $400 last year all by itself. If an annual fee card is no longer meeting my needs, or has been supplanted by a new card, I will either downgrade it to a no annual fee option or just close it out.

Re: Do You Pay More Than 1k In AF?

CorpCrMgr1 — Tue, 09 Apr 2024 02:45:29 GMT

I know a lot of posters pay and get more than the AF back, but I would never get the fee back.

Re: Do You Pay More Than 1k In AF?

speednangels — Tue, 09 Apr 2024 05:12:59 GMT

Currently sitting at $4065 in AF. Accounting for the credits I value (would normally pay for even without card) and the points I earned based on 2023 spend (all points translated to CPP equivalent), I profited $2209.70 (so $6274.70 total back). Based on my money spent and points received from spend, I averaged 6.65% when translating all the different points to their CPP equivalent. Those are just from my AF cards, probably should check my ROS for no-AF as well.

Re: Do You Pay More Than 1k In AF?

ptatohed — Tue, 09 Apr 2024 06:57:28 GMT

@Vash1 wrote:
Do you pay more than 1k in annual fees a year?

That's a big H-E, double hockey sticks - NO!

$99 only and that's for the IHG card which, at a minimum, gives me one free $150+ stay per year. And even that $99/yr keeps me awake at night! lol.

Re: Do You Pay More Than 1k In AF?

MarkintheHV — Tue, 09 Apr 2024 14:00:22 GMT

I give AmEx around $1600, but the return on my benefits is around $4,000. So, I dont complain too much.

Just this month alone i will be getting $650 back in hotel credits. Big chunk of annual fee benefits, not counting gold medallion from Delta, and the$40 (4 of them) tickets to Hawaii

Re: Do You Pay More Than 1k In AF?

JoeRockhead — Tue, 09 Apr 2024 08:51:31 GMT

It should go without saying that if an AF card doesn't benefit someone positively, (including just breaking even) they should avoid/close those cards.

Re: Do You Pay More Than 1k In AF?

redpat — Tue, 09 Apr 2024 11:34:31 GMT

Yes.

They are the admission fee for better travel experiences and for getting a higher multiple than CB on redemptions with a flexible reward point's ecosystem. How everyone nets everything out is up to them.

Re: Do You Pay More Than 1k In AF?

Vash1 — Tue, 09 Apr 2024 11:36:04 GMT

@speednangels wrote:
Currently sitting at $4065 in AF. Accounting for the credits I value (would normally pay for even without card) and the points I earned based on 2023 spend (all points translated to CPP equivalent), I profited $2209.70 (so $6274.70 total back). Based on my money spent and points received from spend, I averaged 6.65% when translating all the different points to their CPP equivalent. Those are just from my AF cards, probably should check my ROS for no-AF as well.

Nice breakdown! Your card setup is nice as as well.

Re: Do You Pay More Than 1k In AF?

Vash1 — Tue, 09 Apr 2024 11:41:07 GMT

@ptatohed wrote:
@Vash1 wrote:
Do you pay more than 1k in annual fees a year?

That's a big H-E, double hockey sticks - NO!

$99 only and that's for the IHG card which, at a minimum, gives me one free $150+ stay per year. And even that $99/yr keeps me awake at night! lol.

lol nice. I'm not even sure if high AF's even fit in with cash back strategies unless it's at a minimum like in your case.

Re: Do You Pay More Than 1k In AF?

Anonymous — Tue, 09 Apr 2024 12:12:06 GMT

@JoeRockhead wrote:
It should go without saying that if an AF card doesn't benefit someone positively, (including just breaking even) they should avoid/close those cards.

Right, except breaking even on the fee shouldn't be considered good enough! The spend you put on to recoup the fee could have been on say a free flat 2% card. (The exception being when no spend is needed to break even or better, as in some hotel cards with free nights)

Re: Do You Pay More Than 1k In AF?

K-in-Boston — Tue, 09 Apr 2024 12:34:04 GMT

@Vash1 wrote:
Do you pay more than 1k in annual fees a year? And what's your ROI each year? I ask because I pay $945 but just from the card benefits I get over 1k back. I want to add the CSR for a visa infinite card but it may cross over with my platinum card. I may drop the gold after hitting the SUB and redeeming.

Currently at $5,442 in annual fees. I've redeemed points and miles for a little over $55,000 in combined airfare and hotels just over the past 11 months so I would say I'm coming out slightly ahead.

I'm curious as to why Gold with its great 4x earnings would not make sense for you to keep if you plan to keep Platinum?

Re: Do You Pay More Than 1k In AF?

swankytiger — Tue, 09 Apr 2024 13:00:02 GMT

Im likely going to go up to above that $1k number but at least for the Hilton Aspire, the statement credits and FNC completely cover the Annual Fee.

Im going to likely PC my United Gateway to the Club in a few weeks. My other AF cards are getting closed cause they dont make sense to me. Amex Plat i can only really get $200 out of value in the credits since the airline one is the only one I can realistically use, Gold has 0 credits I can use, they wyndham i just never used, and the BoA card is getting closed cause BoA sucks if its not your main bank.

Re: Do You Pay More Than 1k In AF?

FicoMike0 — Tue, 09 Apr 2024 14:03:31 GMT

I have a $95 af, deferred first year lol.

Re: Do You Pay More Than 1k In AF?

Vash1 — Tue, 09 Apr 2024 16:01:24 GMT

@K-in-Boston wrote:
@Vash1 wrote:
Do you pay more than 1k in annual fees a year? And what's your ROI each year? I ask because I pay $945 but just from the card benefits I get over 1k back. I want to add the CSR for a visa infinite card but it may cross over with my platinum card. I may drop the gold after hitting the SUB and redeeming.
Currently at $5,442 in annual fees. I've redeemed points and miles for a little over $55,000 in combined airfare and hotels just over the past 11 months so I would say I'm coming out slightly ahead.

I'm curious as to why Gold with its great 4x earnings would not make sense for you to keep if you plan to keep Platinum?

Wow. You've come out more than slightly ahead with that ROI in under a year lol. To answer your question I have the Platinum, Gold, and BBP which all fit so perfectly with my natural spend (and my wife) it's insane and the AF is just $50 just accounting for the card perks (or plus $350 when I can take advantage of the airline and hotel credit on the Platnium). I just always wanted the CSR and working through the math the only way I can think to justify is to drop the Gold since the grubhub credit isn't top of mind to redeem as easy as it is with the Uber Eats credit. I was thinking of product changing it to the Marriot Bonvoy Briliant as the eating credit is so flexible and the free night credit eliminates the rest of the AF (and I love Marriot hotels).

Doing that though I would primarily use CSR and CFU for spend and use the credit book for Platnium and Brilliant. Assuming UR point minimum redemption of 2.5cpp and MR at 2cpp I lose about $400 in net rewards. Typing it out it doesnt make sense but I just always wanted the CSR. Maybe it'll make more sense to PC the Platnium to the Brilliant? Or maybe just keep my current line up? Still trying to decide.

Re: Do You Pay More Than 1k In AF?

redpat — Tue, 09 Apr 2024 18:33:22 GMT

@Vash1 wrote:
@K-in-Boston wrote:
@Vash1 wrote:
Do you pay more than 1k in annual fees a year? And what's your ROI each year? I ask because I pay $945 but just from the card benefits I get over 1k back. I want to add the CSR for a visa infinite card but it may cross over with my platinum card. I may drop the gold after hitting the SUB and redeeming.
Currently at $5,442 in annual fees. I've redeemed points and miles for a little over $55,000 in combined airfare and hotels just over the past 11 months so I would say I'm coming out slightly ahead.

I'm curious as to why Gold with its great 4x earnings would not make sense for you to keep if you plan to keep Platinum?
Wow. You've come out more than slightly ahead with that ROI in under a year lol. To answer your question I have the Platinum, Gold, and BBP which all fit so perfectly with my natural spend (and my wife) it's insane and the AF is just $50 just accounting for the card perks (or plus $350 when I can take advantage of the airline and hotel credit on the Platnium). I just always wanted the CSR and working through the math the only way I can think to justify is to drop the Gold since the grubhub credit isn't top of mind to redeem as easy as it is with the Uber Eats credit. I was thinking of product changing it to the Marriot Bonvoy Briliant as the eating credit is so flexible and the free night credit eliminates the rest of the AF (and I love Marriot hotels).

Doing that though I would primarily use CSR and CFU for spend and use the credit book for Platnium and Brilliant. Assuming UR point minimum redemption of 2.5cpp and MR at 2cpp I lose about $400 in net rewards. Typing it out it doesnt make sense but I just always wanted the CSR. Maybe it'll make more sense to PC the Platnium to the Brilliant? Or maybe just keep my current line up? Still trying to decide.

You cannot PC a Amex charge to a Amex CC, you can only PC/downgrade to another Amex Charge, for example plat or gold to green.

Re: Do You Pay More Than 1k In AF?

NoHardLimits — Tue, 09 Apr 2024 19:14:53 GMT

@Anonymous wrote:
@JoeRockhead wrote:
It should go without saying that if an AF card doesn't benefit someone positively, (including just breaking even) they should avoid/close those cards.

Right, except breaking even on the fee shouldn't be considered good enough! The spend you put on to recoup the fee could have been on say a free flat 2% card. (The exception being when no spend is needed to break even or better, as in some hotel cards with free nights)

That's my view as well. I have to consider the opportunity cost of not putting the spend on my Citi Double Cash. That's why the Amex Platinum coupon book credits work so well for me. The credits are far in excess of any lost 1% in rewards. I also take advantage of the freebies from my United Explorer card (free checked bags and lounge passes, plus better award access). The other two AF cards that I have generate enough additional rewards for me to easily surpass a 2% card.

Re: Do You Pay More Than 1k In AF?

Vash1 — Tue, 09 Apr 2024 22:45:03 GMT

@redpat wrote:
@Vash1 wrote:
@K-in-Boston wrote:
@Vash1 wrote:
Do you pay more than 1k in annual fees a year? And what's your ROI each year? I ask because I pay $945 but just from the card benefits I get over 1k back. I want to add the CSR for a visa infinite card but it may cross over with my platinum card. I may drop the gold after hitting the SUB and redeeming.
Currently at $5,442 in annual fees. I've redeemed points and miles for a little over $55,000 in combined airfare and hotels just over the past 11 months so I would say I'm coming out slightly ahead.

I'm curious as to why Gold with its great 4x earnings would not make sense for you to keep if you plan to keep Platinum?
Wow. You've come out more than slightly ahead with that ROI in under a year lol. To answer your question I have the Platinum, Gold, and BBP which all fit so perfectly with my natural spend (and my wife) it's insane and the AF is just $50 just accounting for the card perks (or plus $350 when I can take advantage of the airline and hotel credit on the Platnium). I just always wanted the CSR and working through the math the only way I can think to justify is to drop the Gold since the grubhub credit isn't top of mind to redeem as easy as it is with the Uber Eats credit. I was thinking of product changing it to the Marriot Bonvoy Briliant as the eating credit is so flexible and the free night credit eliminates the rest of the AF (and I love Marriot hotels).

Doing that though I would primarily use CSR and CFU for spend and use the credit book for Platnium and Brilliant. Assuming UR point minimum redemption of 2.5cpp and MR at 2cpp I lose about $400 in net rewards. Typing it out it doesnt make sense but I just always wanted the CSR. Maybe it'll make more sense to PC the Platnium to the Brilliant? Or maybe just keep my current line up? Still trying to decide.
You cannot PC a Amex charge to a Amex CC, you can only PC/downgrade to another Amex Charge, for example plat or gold to green.

Oh ok thanks for the heads up. Did not know that.

Re: Do You Pay More Than 1k In AF?

ways2go — Wed, 10 Apr 2024 22:40:01 GMT

I have the original IHG card and the annual fee is $49 bucks and I get a free night. They keep asking me to upgrade to the $99 one and I keep turning it down. I'm never upgrading it.