Applying ONLY for SUB....?

[Remedios]

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@xenon3030 wrote:

Do NOT apply for a card only for SUB. It is not a good strategy. Apply for a card that you would use it for a long term or it would be feasible to PC it to another card, after its first year.

Having said that, you might review BOA Premium Rewards card. It has a hefty SUB and there is no FTF. It is a good tarvel card to have with effectively -5$ AF (95$ AF, 100$ airline credit) and it covers Global Entry (100$/4 years).  

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"Don't apply but apply for BoA" 

Yeah, that's a bit of mixed messaging there.

When you try to dissuade somebody from doing something, you should present a compelling argument.

It should be the one that's grounded in some sort of reality, not a personal philosophy or some silly notion of SUB mortality.

So, if we are to have this conversation,  why not?

[ptatohed]

I didn't see any contradiction with xenon's advice.  I take it as xenon is recommending not to apply 'only' for a SUB, but also for a card one can benefit from, and then proceeds to recommend a card that might offer both to the OP - a good SUB and future card benefits.  

[Absolution16]

BoA advice was quite solid to me, actually.  I understand the message conveyed to me; I should optimally look to apply for a card that will serve a purpose and be put to good use, rather than collecting SUB and tossing it in the drawer or trash bin.  The BoA cards, unfortunately, don't interest me much and don't work out all that well for me, but I can see the value in them for the right person.

I dropped the idea of going for United cards, and verified through some hours of forum researching that both the Citi and the USBank route would work for me with an eventual PC down the road.  Thanks to @xenon3030 for that confirmation.

I do, however, see the point made in how any rewards program or terms of condtions can be altered at any time.  This means that a SUB that can be earned in a relatively short period of time is almost a guaranteed thing, especially if it is in the form of pure cashback and not in some points tied to the issuer or the airlines/hotels.  I mean... just look at Delta and their series of devaluations lately.  And oh whatever happened to Starwood Preferred Guest?  Anyone say Bonvoy?

I feel as though any number of points earned through any rewards program are usually better spent earlier than to be hoarded and saved for later use.... which goes right along with the philosophy that makes earning SUB more desirable in certain situations.

But in the end, I don't have the guts to apply for multiple cards and hold 10, 20, or more cards to be juggled around, so I will continue being on the cautious side.

Having said that, I ended up going with USBank and now awaiting the 7-10 day letter.  With my luck lately, I am sure it is gonna be another EX HP down the drain.

[wasCB14]

Here's why I like to focus on the SUB:

My last card, United Explorer, came with a 70k SUB (with AF waived the first year, and as a non-elite I also save $60 on bag fees per-person-round-trip). At a modest 1.2 cpp valuation, 70k miles is $840 in value. Assume I cancel or downgrade the card when my checked bag use falls.

If a person has a 2% card with no SUB and gets a 3% card for something they spend $3k on a year, it would take them 28 years to reach $840 in additional rewards.

[longtimelurker]

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@Absolution16 wrote:

I feel as though any number of points earned through any rewards program are usually better spent earlier than to be hoarded and saved for later use.... which goes right along with the philosophy that makes earning SUB more desirable in certain situations.

But in the end, I don't have the guts to apply for multiple cards and hold 10, 20, or more cards to be juggled around, so I will continue being on the cautious side.

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Right, this is the earn and burn approach which many do especially with airlines moving to dynamic pricing etc.   This doesn't mean redeem as soon as you can,  if there is a 100K reward you don't particularly want, and a 250K you do, you might just have to take the risk...

You don't need to hold lots of cards, as you can close "used" ones after a safe period.  In fact, you want to do this in many cases, to be eligible for a SUB on the same card [or family] again.

But just like most things, if it doesn't feel right for you, don't!  Keeper cards that stay good are valuable as well.

[Remedios]

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@ptatohed wrote:

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@xenon3030 wrote:

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@ptatohed wrote:

I didn't see any contradiction with xenon's advice.  I take it as xenon is recommending not to apply 'only' for a SUB, but also for a card one can benefit from, and then proceeds to recommend a card that might offer both to the OP - a good SUB and future card benefits.  

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Correct. Remedios seems to have some problmes with my comments and without reading them completely, jumps into conclusion. She had also several issues in the past with my comments in this forum. She should attend some trainings to avoid jumping into such conclusions

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Agree.  Me too.  We aren't the only ones.  I think things will be better now. 

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Awww 

[Absolution16]

@wasCB14 

I like United.  Their miles still hold decent value, unlike the SkyPesos that is now Delta.  And not to mention no fuel surcharges and never-expiring miles with United.

If I were to ever even consider a co-branded card, it would be United.  But in the end, as much as I like the 60K miles that I would have surely put to good use towards redemption, I am not gonna risk giving Chase any thoughts about entertaining AA on me.  You just never know.  I value the CSP and my follow up apps to come with Freedom card(s) too valuable to let them tell me that I am churning and abusing their rewards program or that I am not spending enough.  They already forcefully closed my old Freedom once before.

[Absolution16]

@longtimelurker 

I only have 5 cards that are about 7 years old, and 1 more that is approaching 2 years.  Relatively thin file.  The idea of earning and burning have always crossed my mind, but then with such thin profile as mine, I am not sure when it would actually be "safe" to even entertain the earn and burn strategy.

I agree with that dynamic pricing comment.  Redeeming miles has changed a lot.  Part of the reasons that I am stopping to collect MRs for now.... devaluation, lack of availability, super high fuel surcharges.... and dynamic pricing means a lot of the redemptions that used to be great deals are no more.

[longtimelurker]

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@Absolution16 wrote:

@longtimelurker 

I only have 5 cards that are about 7 years old, and 1 more that is approaching 2 years.  Relatively thin file.  The idea of earning and burning have always crossed my mind, but then with such thin profile as mine, I am not sure when it would actually be "safe" to even entertain the earn and burn strategy.

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By earn and burn I don't mean churning.   You have some point earning card(s) and once you reach a desireable award, you use the points to claim it, and then start building up again with the same card(s).   The alternative, which people still do, especially when Covid was making using awards difficult, is just to build up huge numbers of points, and plan, at some time, to use them.    That way, you run into devaluations, and the slight possibility of losing the points if the issuer closes your card for some reason.

Unlike churning (which I also fully support) issuers have no problem with earn and burn, anymore than frequently cashing out a cashback card.

[ptatohed]

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I admit, there was one time and one time only I applied just for the SUB.  It was too large to pass up, lol.  This was maybe 3-4 years ago.  It was the Cap One Savor Rewards, $95 AF, waived first year.  The bonus was insane.  I want to say $600?  Got the SUB, cancelled the card, applied for the Savor One no problem.  

There was my recent application for the Upgrade Elite for a card I don't totally need and I have to say the $400 SUB was a large draw for me.  But I also did it for the future 2.2% CB everything in case AOD 3% goes the way of the dodo.