topic Re: Suggestions for a card with travel rewards in Credit Cards

Suggestions for a card with travel rewards

CBTS — Sat, 22 Jun 2013 09:20:40 GMT

I'm looking to get advice on which card to apply for. I don't travel a lot, only once a year and it's always international, so I don't really wanna go for a specific branded card (e.g. Chase United MileageExplorer or AMEX Delta Gold) which would only be beneficial if I'm on their frequent flyer programs or whatever. Now, it might not make sense to apply for a travel rewards card if I don't even travel a lot, but I've already got 4 cash back credit cards, so I'm just looking to bring something new to the mix; something to rack up points on for the future. AMEX Premier Rewards Gold seems the most attractive, with its extra point earning capability (3X for booking flights, 2X for gas etc.) but I don't know if I'm even going to qualify for it, or if the $175 AF is gonna be worth it for me or not. AMEX Blue Sky seems alright, with the no AF, but it's not really rewarding. 1X point per dollar means I have to spend $7500 to get a $100 statement credit toward travel related expenses.

A little background:

I applied for Discover IT last week after getting preapproval offers in the mail, got a CL of $3600 (my highest CL yet.) Couple of days later, applied for AMEX BCE, got approved for $2000! Both instant approvals. Current Equifax FICO score is 737. Both pulled Equifax. Although, CITI Identity Monitor shows my credit scores as EQ=701 EX=689 TU=669 (FAKO SCORES??)

Other credit cards w/ CL and age:

Chase Freedom - $500 / 8months

Barclaycard Apple Financing - $2000 / 8months

BofA Cash Rewards for students - $700 / 9months

Citi Secured - $500 / 16months

Nissan Motor Acceptance (Auto Loan) - 14.6K Balance

I guess what I'm trying to ask is, also taking into consideration that I only make around 35K annually, would it be wise to apply for the AMEX PRG at this time? I understand that its a charge card, does that make it harder to get approved than the revolvers? If not the PRG, are there any other cards out there with similar rewards (like the PRG's extra points on everyday things like gas and restaurants) which you'd think I'd get approved for? Or should I just not bother with another application, at least until my recent cards get reported to the CRA's?

I figured since I'm already out on a spree, what the hey, right? (I'm sure there is someone out there who can relate .)

Thanks!

RE: Suggestions for a card with travel rewards

CBTS — Sat, 22 Jun 2013 09:32:20 GMT

Also, how is Chase CSP compared to AMEX PRG?

Re: Suggestions for a card with travel rewards

CreditScholar — Sat, 22 Jun 2013 11:17:30 GMT

If you're only making 35k, you shouldn't get a PRG for anything other than the signup bonus. You simply don't make enough (and therefore can't spend enough) to offset the AF.

Re: Suggestions for a card with travel rewards

DaveSignal — Sat, 22 Jun 2013 11:39:33 GMT

The three cards in my sig offer travel rewards with no annual fee and no foreign exchange fee. 2 of them have EMV chip too, which makes purchases in Europe easier.

The BoA Travel Rewards probably offers the best rewards at 1.5 points per dollar. Points can be redeemed for cash, merchandise, statement credits, travel. They will let you use your poitns to fully or partially get redemptions for previously purchased travel expenses, including train tickets, tourist destinations, hotels, airlines, busses, etc. They redeem at 1 point per 1 cent travel redemption.... so the 1.5 points per dollar offsets travel expenses quickly.

For a low APR card, SDFCU offers 6.99%. The rewards are good, but not as versatile as the BoA Travel Rewards.

The NFCU goRewards has good options for rewards of cash, merchandise, travel, etc.... it earns 1 point per dollar, but has no EMV chip.

Re: Suggestions for a card with travel rewards

lg8302ch — Sat, 22 Jun 2013 11:53:33 GMT

I would also recommend the BofA travel rewards card with no FTF and no AF but EMV chip. For a travel rewards card you want to look for Visa or Mastercard, no Amex due lack of acceptance, no FTF and definitely with a chip integrated. Chip and signature is fine even though chip and pin is more convenient. I never paid attention when I tried to use Discover in Europe that it was not due to the lack of acceptance (Diners Club logo) but more the lack of reading the card in the terminals. Just found out with Barclays Arrival WMC that it is the lack of the chip on the cards. Some terminals in Europe cannot read magnetic stripes anymore. For myself I decided against an Amex charge because I prefer spending through different cards and it would not offset the AF on the AX charge cards unless I would run everything through one card.

Re: Suggestions for a card with travel rewards

DaveSignal — Sat, 22 Jun 2013 12:20:44 GMT

@lg8302ch wrote:
I would also recommend the BofA travel rewards card with no FTF and no AF but EMV chip. For a travel rewards card you want to look for Visa or Mastercard, no Amex due lack of acceptance, no FTF and definitely with a chip integrated. Chip and signature is fine even though chip and pin is more convenient. I never paid attention when I tried to use Discover in Europe that it was not due to the lack of acceptance (Diners Club logo) but more the lack of reading the card in the terminals. Just found out with Barclays Arrival WMC that it is the lack of the chip on the cards. Some terminals in Europe cannot read magnetic stripes anymore. For myself I decided against an Amex charge because I prefer spending through different cards and it would not offset the AF on the AX charge cards unless I would run everything through one card.

+1. Amex and Discover are not great cards for international travel.

Re: Suggestions for a card with travel rewards

recordaras — Sat, 22 Jun 2013 12:49:43 GMT

I think I have to chime in on the BoA Travel Rewards card. I just got an approval based on recommendations from this forum. Initially I was super hesitant to open another card specifically for travel, but the more I read about it, the more I understood that it really was a pretty much optimal card for infrequent travelers like me: no AF, no forex, EMV, 1.5 points per dollar spent, 10% annual points bonus if you have a BoA account (making it 1.65 points/$1), $100 sign up bonus and easy to redeem points on travel purchases (I poked around the rewards redemption page on the website and it's super straight forward).

Better yet, they instantly approved me with my highest credit line yet ($5K) and a Visa Signature.

What's not to like?

Re: Suggestions for a card with travel rewards

Anonymous — Sat, 22 Jun 2013 14:00:21 GMT

i had a similar question about travel cards this morning.

after surfing the forum, i'm down to CSP vs. BOFA.

i can't decide. everyone seems to rave about CSP but then there is the annual fee and to redeem the points, you have ot spend 3000 in 3 months!

what about CSP makes it such a good travel card vs. BOFA (other than it seems like bofa cards may not be so prime and people not having such great experiences with BOFA). the 20% discount?

i must say though, CSP is definitely a cooler card to look at.

Re: Suggestions for a card with travel rewards

ztnjpv — Sat, 22 Jun 2013 15:01:49 GMT

OP,

Sometimes less is more. you don't really need a travel card for the amount of travel you plan to do and the amount of income you have. Far better to look at your spending and maximize your cash back first. There's your travel money...if and when you go.

Anything will a high AF is simply going to cancel out or chew heavily into any rewards you get....especially a PRG. Bad idea. Now, if you want to take a stab at a no AF travel rewards card, I still say it's probably not a good idea....but at least you net all the rewards you get.

You need to be realistic about how much you spend and on what.....and how much is relevant to credit card usage. And then take those potential rewards and subtract the costs involved....like AF. Is it worth it? Likely not in your case. Sorry, but often people are just looking for an excuse to get a new card toy with no real need or benefit and they don't really think it through. It's very transaparent.

**The only point worth considering in a card selection would one with no foreign transaction fees....if you don't already have one.

Re: Suggestions for a card with travel rewards

ztnjpv — Sat, 22 Jun 2013 14:59:00 GMT

toli77,

The value of CSP comes in transferring the points to partner programs like United, Hyatt, Marriott etc. These points transfer 1:1. So if the value of that point in higher than a penny in those desired trasfer partners' programs, then you reap nice value out of those points. It depends on you and what you do with them. Values vary. As cash back or on a 1 point/1 cent basis, the CSP is NOT worth it at all and was never meant to be.

Re: Suggestions for a card with travel rewards

Open123 — Sat, 22 Jun 2013 15:33:26 GMT

@CreditScholar wrote:
If you're only making 35k, you shouldn't get a PRG for anything other than the signup bonus. You simply don't make enough (and therefore can't spend enough) to offset the AF.

If you're starting out, it's much better to rotate sign-up bonuses. This will give you a far better return than rewards on spending, which should only be considered once you've exhausted the sign-up bonus offers.

Re: RE: Suggestions for a card with travel rewards

red259 — Sat, 22 Jun 2013 17:13:15 GMT

@Anonymous- wrote:
Also, how is Chase CSP compared to AMEX PRG?

The CSP is on my list because it would pair well with my freedom card and would let me move my points into specific programs that I would like to use at a better value. Also, the signup bonus is very nice if you meet the initial spend. If your not going to be able to achieve the spend bonus of 3k in the first 3 months then I wouldn't recommend it. For your purposes do not get the Amex PRG as I think it would be a waste of money on the annual fee given the level of spend. More importantly, its just not a good card for international travel. You may have a tough time getting approved for a CSP though. I I have a Venture card and it offers some nice features as a visa signature card for things like car rentals etc. You get 2pts for every $1 spent. Its more like a cash back card but you can redeem the pts at the higher rate for travel expenses (granted travel is defined very broadly and includes things like cab fare, subways etc). The downside is you have to have all the points to get the statement credit (vs paying partially with points and partially with cash- not sure if BoA is same requirement) The annual fee is $56 a year but is waived for the first year. You get a 10k bonus for 1k spend in 3 months. The BoA has higher annual fee (not sure of what their initial bonus is), so I would recommend venture.

Re: Suggestions for a card with travel rewards

CBTS — Sat, 22 Jun 2013 22:22:55 GMT

Thanks everyone for your valuable input! But the bad news is, I already applied for it (and got approved!!) an hour after I posted here. I guess my impatience got the best of me. After reading everyone's posts here, it really seems I might've made a HUGE mistake! . I never thought I'd ever be disheartened after getting approved for an AMEX.

And the reason I didn't apply for the CSP, is because I knew I probably wouldn't get approved for it. That and I haven't really had a positive experience with Chase. I do all my banking banking with them, but I was still flat out denied when I tried to get an Auto Loan through them. I also had to recon 5 times just to get approved for the Freedom! So, either they are really strict with their approvals, or they've got something personal against me.

Open 123 said:

I'm sorry, but I'm not sure I understand what you mean by rotating the sign-up bonuses. Can you explain it a little more?

Re: Suggestions for a card with travel rewards

Open123 — Sun, 23 Jun 2013 00:06:29 GMT

@Anonymous- wrote:
I'm sorry, but I'm not sure I understand what you mean by rotating the sign-up bonuses. Can you explain it a little more?

Sure, instead of looking for a card which rewards the most on spending, just meet sign-up bonus spend requirment, then rotate to the next one that's valuable to you.

For example, you spend $20K per year. Spend $3K for SW 50k bonus; then, spend $5k for the 25k spg bonus; spend $1K for Chase Hyatt free rooms; and, whatever reward are important for you. This will earn more rewards for your spending than looking for a single card on which to spend $20k.

Choose for cards where the annual fee is waived for the first year, and you can decide later on which to keep or purge.

Re: Suggestions for a card with travel rewards

CBTS — Sun, 23 Jun 2013 03:20:54 GMT

Oh. As far as I've heard from most people, I thought closing a CC account is one of the worst things a person could ever do their credit. I guess it isn't as bad as it's made out to be?

Re: Suggestions for a card with travel rewards

Open123 — Sun, 23 Jun 2013 03:30:31 GMT

@Anonymous- wrote:
Oh. As far as I've heard from most people, I thought closing a CC account is one of the worst things a person could ever do their credit. I guess it isn't as bad as it's made out to be?

Even when you close an account, it'll still report for up to 10 years.

Start off with some no fee TLs and an Amex, and AAOA will never be an issue.

Re: Suggestions for a card with travel rewards

ztnjpv — Sun, 23 Jun 2013 13:50:29 GMT

"Oh. As far as I've heard from most people, I thought closing a CC account is one of the worst things a person could ever do their credit. I guess it isn't as bad as it's made out to be?"

That's the short version. The long version isn't about the cards themselves. It's about Average Age of Accounts (AAoA). If you close a card that you've had for a long time, you will damage your AAoA in the long run. OTOH, if you have a group of cards that you have had for years and then open another, you just dropped your AAoA a little. But if you close it, your AAoA will rise. See? That's what's really behind the whole story about closing cards. Context is required.

As for getting the new card (PRG?), meet your sign up bonus and you'll get 25,000 extra MR points. At your spending level, that's more than you would get through normal spending. However, PLAN AHEAD. That card has a hefty AF ($175). That will eat up your gains. If you do close the card, you'll want to clean out the points or you'll lose them.

Re: Suggestions for a card with travel rewards

Anonymous — Sun, 23 Jun 2013 14:01:44 GMT

I know it is a little late, and congratulations. But I would suggest the Barclay Arrival. No Foreign Transaction fees, which AMEX waives only for the Platinum. And you get double points with an amazing 40,000 point signup. I justj got approved for $12,500 limit a couple weeks ago, charged $1,000 and they credited all the points to my account the very next day.

It's a great card. Capital One also has no foreign transaction fees, but I despise the company and just closed my final card with them.

Good luck.

Re: Suggestions for a card with travel rewards

DaveSignal — Sun, 23 Jun 2013 14:02:39 GMT

ztnjpv wrote:
"Oh. As far as I've heard from most people, I thought closing a CC account is one of the worst things a person could ever do their credit. I guess it isn't as bad as it's made out to be?"

That's the short version. The long version isn't about the cards themselves. It's about Average Age of Accounts (AAoA). If you close a card that you've had for a long time, you will damage your AAoA in the long run. OTOH, if you have a group of cards that you have had for years and then open another, you just dropped your AAoA a little. But if you close it, your AAoA will rise. See? That's what's really behind the whole story about closing cards. Context is required.

As for getting the new card (PRG?), meet your sign up bonus and you'll get 25,000 extra MR points. At your spending level, that's more than you would get through normal spending. However, PLAN AHEAD. That card has a hefty AF ($175). That will eat up your gains. If you do close the card, you'll want to clean out the points or you'll lose them.

ztnjpv, I am surprised that you got this wrong. FICO scores AAoA on BOTH closed and open accounts. So closing an account has no effect on AAoA, as far as FICO is concerned. At least not until 10 years later when the closed account finally drops off the credit report. OP has shortened her AAoA by opening a new account. Whether she decides to keep it open or close it, AAoA will remain the same.

So, whoever said that closing an account is the worst thing a person could do for their credit is absolutely wrong and obviously has no idea of how the FICO scoring system works. However, opening a new card every year for the sign-up bonus will definately shorten AAoA and WILL hurt your FICO a bit. People do this though, and the AAoA will eventually recover.

Re: Suggestions for a card with travel rewards

DaveSignal — Sun, 23 Jun 2013 14:14:32 GMT

ternify@- wrote:
Oh. As far as I've heard from most people, I thought closing a CC account is one of the worst things a person could ever do their credit. I guess it isn't as bad as it's made out to be?

The people you heard from don't know what they are talking about.

But, if I was in your situation, this is what I would do:

1. Meet the minimum spend to get the sign-up bonus on the PRG. Then, before your annual fee hits, contact Amex to PC to a free card like the BCE.

2. Apply for a Visa with no annual fee, no ForEx fee, and preferably EMV chip as well for your occasional international travel.