Chase Credit Card Strategy

[Citylights18]

To circle back to the original thread I've spent $7,000 so far on my WoH card.

Then if I can spend $8,000 more by 2/22/22 here is what it could get me.

4 elite qualifying nights (worth at least 5,000 pts a piece)

1 free night up to category 4 (worth up to 15,000 pts)

Points from spend on $8k (I'll average that at 1.5 so 12,000 pts)

At the moment I need at least 60,000 pts to hit Explorist. Between the qualifying nights and points that would get me 32,000 points towards it even if I didn't spend/redeem another night at a hotel. If I calculate the net value throwing in the category 4 night that is 47,000 points or roughly 5.875 points through the spend period. Excluding the free night its 4x points through the timeframe.

I wouldn't cannibalize my 5x Freedom spend or 5x Rewards+ on little purchases where I'm scoring a high ROI but compared to 3x dine and drugstore on the CFU I think its worth it to just run that spend through WoH until Explorist is achieved.

[notmyrealname23]

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@Citylights18 wrote:

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@notmyrealname23 wrote:

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@Citylights18 wrote:

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With airlines price comes before loyalty when people buy so there is something to be said for having cards with all the big 3 airlines and go with whomever has the best deal (or wherever you have the most miles).

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I don't really understand the logic for that- are you saying you should pay $300 or so a year for cards with lousy earning structures (really, they're all garbage earning compared to Chase/AMEX/etc.) because you don't want to pay a checked luggage fee? 

I can understand wanting to hold the Delta AMEX cards if you're a Delta elite (because waiving MQD is nice, the companion cert could make sense), or United, etc., but if you're a casually attached flyer playing the field on Expedia, just get a ubiquitous travel card. I'll take 4x MR earn on dining for AMEX Gold (which is really 4x SkyMiles, or Avios, or...) over 2x SkyMiles earn every day of the week. That and fly Southwest and pay $0 for checked bags.

Speaking of... Southwest is actually a thing. Arguably as influential in the US as "the big 3".

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The best example is if you wanted to pick up a few business airline cards just to establish your business credit and stockpile SUB miles across the cards in the process.

If it sets you back three AFs of $95 a piece this is still better than absorbing the AF of one AMEX Business Gold $295. To cut down on AF more let's say you made the 3 choices with SWA, JetBlue and United with Southwest and JetBlue cards giving you points as an offset.

Then if each card gave you at least 60,000 points you'd be sitting on 180,000 points which in this travel period could cover you for quite a while. You don't really need to be earning on them when you can sit on those SUBs. With the cards you get higher earning rate when you spend on airline related purchases.

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So... the UA Business card only gives you 2x UA. Any AMEX charge card will give you 3x MR buying a United ticket (3x for Gold/Green or 5x Platinum). Transfer MR to Avianca, ANA, Aeroplan or Singapore. You're ahead.

Delta Gold is similar. That's sort of my point; airline cards are lousy earners in general, even when you're buying tickets on the airline. I mean... I guess if you want to sock drawer a business card? But honestly what you're describing is more a churn/burn strategy.

[notmyrealname23]

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@K-in-Boston wrote:

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The cards with $250-$550 fees come with more than checked bag fee waiver, though.  For those the selling point is the companion certificate that should more than cover the annual fee as well as the big signup bonuses.  (And for elites, additional perks and/or opportunities to earn higher status.)  Certainly for category spending, there are better cards.  But for the average consumer, particularly those in hub cities for a specific airline or those in smaller markets where it's their sole airline choice to get to a larger airport, it can certainly make sense to pick up a sub-$100 AF card for the waived bag fees.

Southwest is definitely a massive player in the US, and I flew them fairly often prior to becoming a SkyFanboy.  However, sometimes people need to fly to places outside of the US, Caribbean, and a small list of destinations in Mexico, Belize, and Costa Rica.  The unique "take whatever's empty" seating process certainly isn't for everyone.

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Right, but holding THREE sub-$100 AF cards (one for United/American/Delta, and Delta's is BARELY under $100) to handle luggage fees because you like to switch it up to whatever's cheapest on Expedia as an intermittent traveler is just not optimizing, IMO, since now you're well within the realm of $250+ AF premium cards by paying three annual fees. Just pay an occasional fee (or have a travel card where you can absorb an occasional luggage fee). If you're only doing one airline card because you're in a United/American/Delta captive market, and you make it up on your three flights a year where you check bags, sure...

[Citylights18]

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@notmyrealname23 wrote:

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@Citylights18 wrote:

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@notmyrealname23 wrote:

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@Citylights18 wrote:

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With airlines price comes before loyalty when people buy so there is something to be said for having cards with all the big 3 airlines and go with whomever has the best deal (or wherever you have the most miles).

---

I don't really understand the logic for that- are you saying you should pay $300 or so a year for cards with lousy earning structures (really, they're all garbage earning compared to Chase/AMEX/etc.) because you don't want to pay a checked luggage fee? 

I can understand wanting to hold the Delta AMEX cards if you're a Delta elite (because waiving MQD is nice, the companion cert could make sense), or United, etc., but if you're a casually attached flyer playing the field on Expedia, just get a ubiquitous travel card. I'll take 4x MR earn on dining for AMEX Gold (which is really 4x SkyMiles, or Avios, or...) over 2x SkyMiles earn every day of the week. That and fly Southwest and pay $0 for checked bags.

Speaking of... Southwest is actually a thing. Arguably as influential in the US as "the big 3".

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The best example is if you wanted to pick up a few business airline cards just to establish your business credit and stockpile SUB miles across the cards in the process.

If it sets you back three AFs of $95 a piece this is still better than absorbing the AF of one AMEX Business Gold $295. To cut down on AF more let's say you made the 3 choices with SWA, JetBlue and United with Southwest and JetBlue cards giving you points as an offset.

Then if each card gave you at least 60,000 points you'd be sitting on 180,000 points which in this travel period could cover you for quite a while. You don't really need to be earning on them when you can sit on those SUBs. With the cards you get higher earning rate when you spend on airline related purchases.

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So... the UA Business card only gives you 2x UA. Any AMEX charge card will give you 3x MR buying a United ticket (3x for Gold/Green or 5x Platinum). Transfer MR to Avianca, ANA, Aeroplan or Singapore. You're ahead.

Delta Gold is similar. That's sort of my point; airline cards are lousy earners in general, even when you're buying tickets on the airline. I mean... I guess if you want to sock drawer a business card? But honestly what you're describing is more a churn/burn strategy.

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Sorry I left out an assumption here. My assumption was that somebody would already have a high earning structure be it AMEX, Chase or something else and was just looking more for the SUB and extra perks that come with having the card, not to use them as daily drivers.

If they are the business cards you can treat the combined $285 AF as a sunk cost compared to the personal where it becomes more of a cost benefit thing.

A high AF card that you plan to keep open simply because you can buy 5x airfare with it like the AMEX Platinum is of very limited utility. I know it has a grandiose SUB but if those points are more than a year out from being used you're just going to end up paying a high AF for that stockpile you accrued.

[notmyrealname23]

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@Citylights18 wrote:

Sorry I left out an assumption here. My assumption was that somebody would already have a high earning structure be it AMEX, Chase or something else and was just looking more for the SUB and extra perks that come with having the card, not to use them as daily drivers.

If they are the business cards you can treat the combined $285 AF as a sunk cost compared to the personal where it becomes more of a cost benefit thing.

A high AF card that you plan to keep open simply because you can buy 5x airfare with it like the AMEX Platinum is of very limited utility. I know it has a grandiose SUB but if those points are more than a year out from being used you're just going to end up paying a high AF for that stockpile you accrued.

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AMEX Business Platinum makes a fair amount of sense for someone who actually spends a lot on airfare (it includes a points rebate if you use points to pay for airfare that boosts the value of AMEX points), and in theory you could use the $200 incidentals credit to... defray some baggage charges.

Platinum (any variety) is definitely an "extra perks" card, as you've said. It isn't entirely clear to me that sock drawering a bunch of airline cards for perks and airfare is a lot different from having an AMEX Platinum you use for perks and airfare.

[Citylights18]

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@notmyrealname23 wrote:

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@Citylights18 wrote:

Sorry I left out an assumption here. My assumption was that somebody would already have a high earning structure be it AMEX, Chase or something else and was just looking more for the SUB and extra perks that come with having the card, not to use them as daily drivers.

If they are the business cards you can treat the combined $285 AF as a sunk cost compared to the personal where it becomes more of a cost benefit thing.

A high AF card that you plan to keep open simply because you can buy 5x airfare with it like the AMEX Platinum is of very limited utility. I know it has a grandiose SUB but if those points are more than a year out from being used you're just going to end up paying a high AF for that stockpile you accrued.

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AMEX Business Platinum makes a fair amount of sense for someone who actually spends a lot on airfare (it includes a points rebate if you use points to pay for airfare that boosts the value of AMEX points), and in theory you could use the $200 incidentals credit to... defray some baggage charges.

Platinum (any variety) is definitely an "extra perks" card, as you've said. It isn't entirely clear to me that sock drawering a bunch of airline cards for perks and airfare is a lot different from having an AMEX Platinum you use for perks and airfare.

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I didn't say SD a bunch of airline credit cards but maybe go for like 3. 

You can always move your AMEX points to those airlines then pay for the taxes with the airline card to get the flight perks. Yes there is a travel credit on the platinum but its tied to one airline. Then the AF starts to stack up. Business Platinum, Platinum, Business Gold, Gold it all just gets to be redundant.

[K-in-Boston]

The earnings on those four charge cards are quite different.  Certainly some do have overlapping benefits, but different charges go on different cards.  If someone is invested in MRs and has significant restaurant and grocery spending (as most of us as consumers do), there is no reason to not have Gold.  The AFs on my Platinum, Business Platinum, and Gold are all well worth it.  I don't have Business Gold because I don't have any significant spending for shipping, advertising, technology services, gas, etc.  Swinging the conversation back around to Chase, that's the reason people want and have trifectas and quadfectas on personal and business UR earning cards.

[Citylights18]

When the percentages of spend on cards become too narrow though it doesn't cover the AF.

[K-in-Boston]

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@Citylights18 wrote:

When the percentages of spend on cards become too narrow though it doesn't cover the AF.

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While that would true for many cards, when you're talking about having numerous cards in the same ecosystem like we are with Amex, that's not always a logical approach.  The increased 4x earnings on Gold cover my annual fee about 2-3 weeks after renewal (keep in mind that for those who would be organically spending the amounts on the monthly/annual credits anyway, the net AF of Gold is only $30).  Business Platinum's AF is already covered for about 10 years for me and that number will continue to grow as I earn additional points.  But yes, in a case like Business Gold it doesn't make sense for me as I stated in the previous post because I don't have significant expenditures in those categories.