topic Re: Is CSP practical? in Credit Cards

Is CSP practical?

Reincarnated — Sat, 05 Jul 2014 21:03:36 GMT

Hey all.

I was wondering, is CSP more of a prestigious card made of steel or do people actually get it for travelling?

I know it does give 20% off travel, BUT that's only when you have enough points to cover the cost. I would imagine that points would take a very long time to accrue, even wirth a Chase Freedom card, so wouldn't that only be let's say 1 vacation flight per year? PLUS you're going to have to pay $95 per year anyways.

The only way this card makes sense is to get it for the bonus points welcome bonus then get rid of it within a 2-3 year span so it's actually worth not paying the annual fee.

Am I totally wrong or is there something I'm not getting?

Re: Is CSP practical?

H14 — Sat, 05 Jul 2014 21:24:42 GMT

In general, yes most travel cards will require high annual spend on them to get good use.

Aside from the rewards though, you get no FTF, and chase has plans to roll out chip + pin cards eventually if you might be travelling to Europe. Plus Visa Signature perks.

Re: Is CSP practical?

mongstradamus — Sat, 05 Jul 2014 21:27:28 GMT

There is also transfer partners that is what biggest advantage of csp, where it is something like 2 points per cent

Re: Is CSP practical?

bigblue7722 — Sun, 06 Jul 2014 00:59:39 GMT

CSP is the only card I will ever have with an AF. Idk theres just something about it. Maybe because its heavy? I like being able to transfer the points from the freedom. It is my first visa sig card. I wouldnt pay like 175 for it like prg thats just crazy. 95 is still a little high but still worth it for me. I wish it was 2 points back on everything though. That would make it near unbeatable.

Re: Is CSP practical?

DaveSignal — Sun, 06 Jul 2014 00:52:19 GMT

The annual fee is for the flexibility. The card allows you to transfer points from other Chase cards and directly to airlines, trains, and hotels. The best use for the rewards are by transfering to the partners. With this option, if you do a little research with the airlines, you could get 2 cents per UR point (sometimes much more). There are not many other travel cards that offer this kind of value while still having the option to transfer to multiple different partners, ie: you can fly with United for one trip and then with British Airways the next time. How often you can use the rewards depends on the points required for the flights that you want in addition to how much you spend with the card.

Re: Is CSP practical?

takeshi74 — Sun, 06 Jul 2014 03:53:14 GMT

@Reincarnated wrote:
Is CSP practical?

I find it practical. YMMV.

@Reincarnated wrote:
I know it does give 20% off travel

As mentioned above, most find better value per point by transferring versus redeeming for travel via the UR portal.

@Reincarnated wrote:
I would imagine that points would take a very long time to accrue, even wirth a Chase Freedom card, so wouldn't that only be let's say 1 vacation flight per year??

@Reincarnated wrote:
Am I totally wrong or is there something I'm not getting?

Spend varies from person to person so you can't assume that everyone has your level of spend. Generally speaking, travel cards are better suited for higher amounts of spend.

Re: Is CSP practical?

hot4u — Sun, 06 Jul 2014 15:42:34 GMT

@bigblue7722 wrote:
CSP is the only card I will ever have with an AF. Idk theres just something about it. Maybe because its heavy? I like being able to transfer the points from the freedom. It is my first visa sig card. I wouldnt pay like 175 for it like prg thats just crazy. 95 is still a little high but still worth it for me. I wish it was 2 points back on everything though. That would make it near unbeatable.

Don't forget you get your 7% Dividend on Points earned for the year.

http://thepointsguy.com/2014/01/how-soon-will-i-see-my-chase-sapphire-preferred-annual-points-dividend/

Re: Is CSP practical?

Open123 — Sun, 06 Jul 2014 15:44:39 GMT

It's practical if you value their transfer partners, need a card to use abroad and spend at least $20K on the card.

Re: Is CSP practical?

Flyersfan12 — Sun, 06 Jul 2014 15:53:59 GMT

I only recently finished my Chase trifecta, but since doing so I have absolutely loved the combo. CSP in conjunction with freedom gains a lot of points, and I love the benefits from the CSP which are slightly longer than say my AMEX for purchase protection. I calculated my practicality even with my lower spend on how I could accumulate points to make a few trips a year and it really was not as hard as I thought it wouldn be. Freedom accumulates very quickly, and whenever I need to buy something I usually check the UR store which gives me extra pts on normal purchases. The best part is that a lot of the stores I shop at also allow in store pick up which is great for same day purchases.

Like others have said the value to me was the 20% off travel which most of the time is already the annual fee for me, and when I transfer to certain airlines it becomes an even better value and I save even more. It is a great card. The one thing that I was a little dissapointed in and I know it sounds childish is that I feel like my card is not as heavy as some other CSP users cards I have felt in the past. I believe it is metal, but it almost feels plastic and it is only slightly heavier than the plastic ones as well. I wonder if it is just in my head that it's thinner and lighter now.

Re: Is CSP practical?

eagle2013 — Sun, 06 Jul 2014 16:12:59 GMT

CSP is also the only card I'll have with an AF.

A little known tibit if you do some online shopping is the UR mall, which can give you additional UR points per dollar from various retailers. The best thing is that you don't have to use a Chase card in order to get the addtional points. I splurged and purchased a purse from Nordstrom that was already marked down on clearance. At that time, Chase UR mall was running a promotion for 8 points per $ on Nordstrom purchases. That one purchase netted me 2400 additional UR points which I value at least 1.25 cpp depending on where I want to transfer them too. The UR mall makes the CSP even more valuable to me!

Re: Is CSP practical?

Anonymous — Sun, 06 Jul 2014 16:32:42 GMT

@eagle2013 wrote:
CSP is also the only card I'll have with an AF.

A little known tibit if you do some online shopping is the UR mall, which can give you additional UR points per dollar from various retailers. The best thing is that you don't have to use a Chase card in order to get the addtional points. I splurged and purchased a purse from Nordstrom that was already marked down on clearance. At that time, Chase UR mall was running a promotion for 8 points per $ on Nordstrom purchases. That one purchase netted me 2400 additional UR points which I value at least 1.25 cpp depending on where I want to transfer them too. The UR mall makes the CSP even more valuable to me!

This is a great perk I just learned of as well. Easy to rack up points through their UR Mall.

Re: Is CSP practical?

Anonymous — Sun, 06 Jul 2014 18:13:03 GMT

@Anonymous wrote:
@eagle2013 wrote:
CSP is also the only card I'll have with an AF.

A little known tibit if you do some online shopping is the UR mall, which can give you additional UR points per dollar from various retailers. The best thing is that you don't have to use a Chase card in order to get the addtional points. I splurged and purchased a purse from Nordstrom that was already marked down on clearance. At that time, Chase UR mall was running a promotion for 8 points per $ on Nordstrom purchases. That one purchase netted me 2400 additional UR points which I value at least 1.25 cpp depending on where I want to transfer them too. The UR mall makes the CSP even more valuable to me!
This is a great perk I just learned of as well. Easy to rack up points through their UR Mall.

Before using any mall, I suggest always using a site like http://www.cashbackmonitor.com/ You will often find malls with higher percentages than Chase. You then have to decide how to value URs compared to straight cash back, to decide which is the better choice.

Re: Is CSP practical?

nachoslibres — Sun, 06 Jul 2014 18:29:40 GMT

@Reincarnated wrote:
Hey all.

I was wondering, is CSP more of a prestigious card made of steel or do people actually get it for travelling?

I know it does give 20% off travel, BUT that's only when you have enough points to cover the cost. I would imagine that points would take a very long time to accrue, even wirth a Chase Freedom card, so wouldn't that only be let's say 1 vacation flight per year? PLUS you're going to have to pay $95 per year anyways.

The only way this card makes sense is to get it for the bonus points welcome bonus then get rid of it within a 2-3 year span so it's actually worth not paying the annual fee.

Am I totally wrong or is there something I'm not getting?

Let's do some math - as I find that that is the only way to see how practical a card is.

Let's say you spend $24,000 a year on the CSP, and $4,000 of that is travel and dining. You would end up getting 21,400 UR points for the regular spend ($20,000 * 1.07 UR/$) and then 8,560 UR points for the travel and dining spend ($4,000 * 2.14 UR/$) for a total of 29,960 UR points. If you are able to convert those UR points into miles and get $0.02 / UR then you just got yourself $599.20 worth of travel for free for the year - which is much more than the annual fee.

If you are able to combine this with a Freedom card you are able to rack up even more URs without having an additional annual fee, which gives you an even higher return. Now, this doesn't mean that this card is the best card for your spend, but the example above does beat out one of the best cash back cards on the market - the Amex Fidelity - which gives 2% across the board and has no annual fee ($24,000 * 0.02 means you would get $480 back in a year, which is less than the $599.20 - the $95 annual fee).

Redeeming the URs against travel in the UR portal means you are only getting $0.0125 per UR which is less than what you could get from a Quick Silver card (if we are not considering the bonused travel and dining spend). This means that for every person there is likely to be a different card or card combination that best fits that person's spend in order to maximize rewards. Throwing a blanket statement saying that a certain card is only worth the sign on bonus or that a certain card is best for every one will never be correct.

Re: Is CSP practical?

Anonymous — Sun, 06 Jul 2014 18:46:04 GMT

@nachoslibres wrote:
@Reincarnated wrote:
Hey all.

I was wondering, is CSP more of a prestigious card made of steel or do people actually get it for travelling?

I know it does give 20% off travel, BUT that's only when you have enough points to cover the cost. I would imagine that points would take a very long time to accrue, even wirth a Chase Freedom card, so wouldn't that only be let's say 1 vacation flight per year? PLUS you're going to have to pay $95 per year anyways.

The only way this card makes sense is to get it for the bonus points welcome bonus then get rid of it within a 2-3 year span so it's actually worth not paying the annual fee.

Am I totally wrong or is there something I'm not getting?
Let's do some math - as I find that that is the only way to see how practical a card is.

Let's say you spend $24,000 a year on the CSP, and $4,000 of that is travel and dining. You would end up getting 21,400 UR points for the regular spend ($20,000 * 1.07 UR/$) and then 8,560 UR points for the travel and dining spend ($4,000 * 2.14 UR/$) for a total of 29,960 UR points. If you are able to convert those UR points into miles and get $0.02 / UR then you just got yourself $599.20 worth of travel for free for the year - which is much more than the annual fee.

If you are able to combine this with a Freedom card you are able to rack up even more URs without having an additional annual fee, which gives you an even higher return. Now, this doesn't mean that this card is the best card for your spend, but the example above does beat out one of the best cash back cards on the market - the Amex Fidelity - which gives 2% across the board and has no annual fee ($24,000 * 0.02 means you would get $480 back in a year, which is less than the $599.20 - the $95 annual fee).

Redeeming the URs against travel in the UR portal means you are only getting $0.0125 per UR which is less than what you could get from a Quick Silver card (if we are not considering the bonused travel and dining spend). This means that for every person there is likely to be a different card or card combination that best fits that person's spend in order to maximize rewards. Throwing a blanket statement saying that a certain card is only worth the sign on bonus or that a certain card is best for every one will never be correct.

Good analysis! One thing worth noting is how sensitive the "best" card calculation is. Fidelity Amex is only slightly worse in this example, and if you only get 1.8c per UR, then it is better. If more of the spend is on dining, or you get 2.1 c per UR, the CSP widens its lead etc. And of course, you never reallly know these figures ("How much will I spend this year, and what will my redemptions be?") in advance!

Re: Is CSP practical?

bigblue7722 — Sun, 06 Jul 2014 18:49:47 GMT

@hot4u wrote:
@bigblue7722 wrote:
CSP is the only card I will ever have with an AF. Idk theres just something about it. Maybe because its heavy? I like being able to transfer the points from the freedom. It is my first visa sig card. I wouldnt pay like 175 for it like prg thats just crazy. 95 is still a little high but still worth it for me. I wish it was 2 points back on everything though. That would make it near unbeatable.
Don't forget you get your 7% Dividend on Points earned for the year.

http://thepointsguy.com/2014/01/how-soon-will-i-see-my-chase-sapphire-preferred-annual-points-dividend/

i always forget about that! There is a debate on whether or not they are going to stop it though.

Re: Is CSP practical?

eagle2013 — Sun, 06 Jul 2014 19:05:10 GMT

@nachoslibres wrote:
@Reincarnated wrote:
Hey all.

I was wondering, is CSP more of a prestigious card made of steel or do people actually get it for travelling?

I know it does give 20% off travel, BUT that's only when you have enough points to cover the cost. I would imagine that points would take a very long time to accrue, even wirth a Chase Freedom card, so wouldn't that only be let's say 1 vacation flight per year? PLUS you're going to have to pay $95 per year anyways.

The only way this card makes sense is to get it for the bonus points welcome bonus then get rid of it within a 2-3 year span so it's actually worth not paying the annual fee.

Am I totally wrong or is there something I'm not getting?
Let's do some math - as I find that that is the only way to see how practical a card is.

Let's say you spend $24,000 a year on the CSP, and $4,000 of that is travel and dining. You would end up getting 21,400 UR points for the regular spend ($20,000 * 1.07 UR/$) and then 8,560 UR points for the travel and dining spend ($4,000 * 2.14 UR/$) for a total of 29,960 UR points. If you are able to convert those UR points into miles and get $0.02 / UR then you just got yourself $599.20 worth of travel for free for the year - which is much more than the annual fee.

If you are able to combine this with a Freedom card you are able to rack up even more URs without having an additional annual fee, which gives you an even higher return. Now, this doesn't mean that this card is the best card for your spend, but the example above does beat out one of the best cash back cards on the market - the Amex Fidelity - which gives 2% across the board and has no annual fee ($24,000 * 0.02 means you would get $480 back in a year, which is less than the $599.20 - the $95 annual fee).

Redeeming the URs against travel in the UR portal means you are only getting $0.0125 per UR which is less than what you could get from a Quick Silver card (if we are not considering the bonused travel and dining spend). This means that for every person there is likely to be a different card or card combination that best fits that person's spend in order to maximize rewards. Throwing a blanket statement saying that a certain card is only worth the sign on bonus or that a certain card is best for every one will never be correct.

i would be very careful to assume 2cpp on UR redemptions. It just isn't that realistic even for good value travel partners (United, Avios, Amtrak,Hyatt). At best, you can conservatively estimate a UR value of 1.25 - 1.50 cpp. When choosing the CSP you have to see if the travel partners suit your needs more than if your spending justifies the AF.

Re: Is CSP practical?

Chaselover — Sun, 06 Jul 2014 20:39:20 GMT

@mongstradamus wrote:
There is also transfer partners that is what biggest advantage of csp, where it is something like 2 points per cent

Isnt it the reverse? 2 cents for 1 point? no expert here, but just clarifying.

Re: Is CSP practical?

Anonymous — Sun, 06 Jul 2014 20:40:51 GMT

@Chaselover wrote:
@mongstradamus wrote:
There is also transfer partners that is what biggest advantage of csp, where it is something like 2 points per cent
Isnt it the reverse? 2 cents for 1 point? no expert here, but just clarifying.

Yes, you want to get more than 1 cent per point. 2 points per cent with an AF would not be a good card!

Re: Is CSP practical?

nachoslibres — Sun, 06 Jul 2014 21:05:57 GMT

@eagle2013 wrote:
@nachoslibres wrote:
@Reincarnated wrote:
Hey all.

I was wondering, is CSP more of a prestigious card made of steel or do people actually get it for travelling?

I know it does give 20% off travel, BUT that's only when you have enough points to cover the cost. I would imagine that points would take a very long time to accrue, even wirth a Chase Freedom card, so wouldn't that only be let's say 1 vacation flight per year? PLUS you're going to have to pay $95 per year anyways.

The only way this card makes sense is to get it for the bonus points welcome bonus then get rid of it within a 2-3 year span so it's actually worth not paying the annual fee.

Am I totally wrong or is there something I'm not getting?
Let's do some math - as I find that that is the only way to see how practical a card is.

Let's say you spend $24,000 a year on the CSP, and $4,000 of that is travel and dining. You would end up getting 21,400 UR points for the regular spend ($20,000 * 1.07 UR/$) and then 8,560 UR points for the travel and dining spend ($4,000 * 2.14 UR/$) for a total of 29,960 UR points. If you are able to convert those UR points into miles and get $0.02 / UR then you just got yourself $599.20 worth of travel for free for the year - which is much more than the annual fee.

If you are able to combine this with a Freedom card you are able to rack up even more URs without having an additional annual fee, which gives you an even higher return. Now, this doesn't mean that this card is the best card for your spend, but the example above does beat out one of the best cash back cards on the market - the Amex Fidelity - which gives 2% across the board and has no annual fee ($24,000 * 0.02 means you would get $480 back in a year, which is less than the $599.20 - the $95 annual fee).

Redeeming the URs against travel in the UR portal means you are only getting $0.0125 per UR which is less than what you could get from a Quick Silver card (if we are not considering the bonused travel and dining spend). This means that for every person there is likely to be a different card or card combination that best fits that person's spend in order to maximize rewards. Throwing a blanket statement saying that a certain card is only worth the sign on bonus or that a certain card is best for every one will never be correct.
i would be very careful to assume 2cpp on UR redemptions. It just isn't that realistic even for good value travel partners (United, Avios, Amtrak,Hyatt). At best, you can conservatively estimate a UR value of 1.25 - 1.50 cpp. When choosing the CSP you have to see if the travel partners suit your needs more than if your spending justifies the AF.

You can definitely get $0.02 / UR. If you aren't, then you aren't getting the best deal. Any of the flights I have priced (i.e. from where I live to London) yield a little over $0.02/UR - and this is economy class - if you were to do business or first you would get a lot more than $0.02/UR. I've had the same thing with any of the Hyatt stays I have priced. Yes, if you transfer to someone like Marriott you will see a much lower rate (probably around $0.01/UR), but if all you can get is $0.0125-$0.015/UR then this card is a lot less valuable.

Re: Is CSP practical?

SwiftTone — Mon, 07 Jul 2014 01:24:43 GMT

Can someone tell me how I would be able to transfer to United to get the best value. I am bit unclear on how to do it and I am doing a few international flights this year