AmEx Platinum for non-bonus spending?

DrForce · ‎09-28-2015

I'm about to complete my $3k spend on the AmEx Platinum 100K MR offer. I am trying to decide whether to sock drawer the Platinum Card and go back to my previous non-cateogry bonus spending card which was the BofA Travel Rewards card which gets me 2.625% cashback (platinum honors level) or continue to use the AmEx Platinum Card for its excellent purchase protection and 1x MR earning rate. If I sock drawer the Platinum, I would only use it for the $200 airline credit and for lounge access while I travel a few times per year; however, another side of me says it's silly to have a $450 annual fee card and only use it 3-4 times per year. Then again the BofA Travel Rewards Visa has better acceptance and no worries about redemption rates since it's a cashback card.

Being new to MRs, I'm not sure how 1x MRs compares to 2.625% cashback, especially given the purchase protection on the Platinum. I know the best redemption rates are transfers to airlines, but is it easy to get more than 2.625 cents per point out of a MR?

For reference, I already have Old Blue Cash and Discover IT for 5% cashback in groceries, gas, drugstores, and rotating categories.

longtimelurker · ‎09-28-2015

@DrForce wrote:
I'm about to complete my $3k spend on the AmEx Platinum 100K MR offer. I am trying to decide whether to sock drawer the Platinum Card and go back to my previous non-cateogry bonus spending card which was the BofA Travel Rewards card which gets me 2.625% cashback (platinum honors level) or continue to use the AmEx Platinum Card for its excellent purchase protection and 1x MR earning rate. If I sock drawer the Platinum, I would only use it for the $200 airline credit and for lounge access while I travel a few times per year; however, another side of me says it's silly to have a $450 annual fee card and only use it 3-4 times per year. Then again the BofA Travel Rewards Visa has better acceptance and no worries about redemption rates since it's a cashback card.

Being new to MRs, I'm not sure how 1x MRs compares to 2.625% cashback, especially given the purchase protection on the Platinum. I know the best redemption rates are transfers to airlines, but is it easy to get more than 2.625 cents per point out of a MR?

For reference, I already have Old Blue Cash and Discover IT for 5% cashback in groceries, gas, drugstores, and rotating categories.

It's not at all uncommon to use the plat just for the perks, and not use it all as a spending card. Even for those making use of MRs, other MR cards have much better earning rates. So if you can use your 100K MRs and don't need any more, sock drawering is fine. If you don't think the credit/lounge access is going to justify the AF in future, I would also consider getting an EveryDay, as a free card allowing you to keep any unused MRs

How easy is it to get 2.625 cents per MR? If you are flexible and go premium cabin international, not so hard (and for now short haul domestic using Avios is also good value) . But if you don't want to do that, MRs are worth a lot less. So see what you would do and get a feeling of the value for you.

While it may seem silly to have a hardly used $450 card, it would be more silly to use if for tranasctions getting less rewards.

jsucool76 · ‎09-28-2015

I'm only using my Plat to 3k spend, or for amex offers and airline incidental credit. it will likely see no spend other than that.

kdm31091 · ‎09-28-2015

The plat is not likely worth it for everyday spending. The Everyday card earns the same or more and has no fee.

takeshi74 · ‎09-28-2015

@DrForce wrote:
Being new to MRs, I'm not sure how 1x MRs compares to 2.625% cashback

It all depends on how you redeem the MR's and whether or not you can use methods that leverage the potential value of MR's. They do not have a fixed value. If rewards are a priority you should definitely do this reseach before applying (should be done for any rewards card). However, as stated above, there are many that find the benefits worthwhile even if they're not using the Platinum to generate rewards on spend via MR.

We can't utilize any redemption methods with MR that are worth more than 0.6 cents to 0.8 cents per point so we're probably ditching our Platinum. Benefits are nice but we're really not getting that much out of them.

Open123 · ‎09-28-2015

@DrForce wrote:
Being new to MRs, I'm not sure how 1x MRs compares to 2.625% cashback, especially given the purchase protection on the Platinum. I know the best redemption rates are transfers to airlines, but is it easy to get more than 2.625 cents per point out of a MR?

All things equal, I'd say 2.625% cashback is greater than 1 MR. There are cases with prudent and opportunistic redemptions on int'l premium cabin flights where you may realize a greater return, but these are uncommon.

Anonymous · ‎09-28-2015

@Open123 wrote:
@DrForce wrote:
Being new to MRs, I'm not sure how 1x MRs compares to 2.625% cashback, especially given the purchase protection on the Platinum. I know the best redemption rates are transfers to airlines, but is it easy to get more than 2.625 cents per point out of a MR?

All things equal, I'd say 2.625% cashback is greater than 1 MR. There are cases with prudent and opportunistic redemptions on int'l premium cabin flights where you may realize a greater return, but these are uncommon.

I can transfer my MR points to Virgin America and for a roundtrip business class ticket on Virgin Australia (their highest class seat) from LA to Sydney get about 5.85 cents per miles depending on actual flight I pick. Well worth it for me.

Open123 · ‎09-28-2015

@Anonymous wrote:
@Open123 wrote:
@DrForce wrote:
Being new to MRs, I'm not sure how 1x MRs compares to 2.625% cashback, especially given the purchase protection on the Platinum. I know the best redemption rates are transfers to airlines, but is it easy to get more than 2.625 cents per point out of a MR?

All things equal, I'd say 2.625% cashback is greater than 1 MR. There are cases with prudent and opportunistic redemptions on int'l premium cabin flights where you may realize a greater return, but these are uncommon.
I can transfer my MR points to Virgin America and for a roundtrip business class ticket on Virgin Australia (their highest class seat) from LA to Sydney get about 5.85 cents per miles depending on actual flight I pick. Well worth it for me.

And, you get gold status if you transfer 80K by October!

mongstradamus · ‎09-28-2015

If you want to put the work into it you can find good use of miles, but you need to be flexible.

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Anonymous · ‎09-28-2015

@Open123 wrote:
@Anonymous wrote:
@Open123 wrote:
@DrForce wrote:
Being new to MRs, I'm not sure how 1x MRs compares to 2.625% cashback, especially given the purchase protection on the Platinum. I know the best redemption rates are transfers to airlines, but is it easy to get more than 2.625 cents per point out of a MR?

All things equal, I'd say 2.625% cashback is greater than 1 MR. There are cases with prudent and opportunistic redemptions on int'l premium cabin flights where you may realize a greater return, but these are uncommon.
I can transfer my MR points to Virgin America and for a roundtrip business class ticket on Virgin Australia (their highest class seat) from LA to Sydney get about 5.85 cents per miles depending on actual flight I pick. Well worth it for me.
And, you get gold status if you transfer 80K by October!

Yes indeed. Going to transfer enough to get 160K Elevate points which is enough for two of those tickets. Once I add the Chase Hyatt card and transfer some UR points to my Hyatt account, the flights and a week at the Park Hyatt Sydney will all be courtesy of card reward programs. They're such horrible things