Need a 2nd credit card (CSP??) to complement Freedom

[wiivile]

I need a second credit card to increase my credit limit total and also my total number of accounts... my only open account on my credit report is my Chase Freedom card. Have no debt/loans/etc. ~750 credit score.

I have over 110,000 UR points on my Chase Freedom. Most of my charges are at restaurants. Live in NYC and eat out every night, so no gas or groceries (sorry AMEX Blue Cash...)

Obviously getting the CSP would give me my best redemption options in terms of travel, and with the sign up bonus give me 150,000 points total, but I don't know if I spend enough to justify the $95 annual fee. My annual spend is only around $12,000, which is pretty low for a card with an annual fee. On the other hand, since most of my charges are at restauants, 2x points on dining is good.

The regular Sapphire (no annual fee) still gives me 2x points on dining but doesn't help in terms of point redemption. It's basically the same as the Freedom in terms of redemption, right?

Any other cards I should consider over the CSP, especially since my annual spend isn't really high enough to justify a big annual fee? Should ideally award me based on my eating-out habits.

[mountainmom]

I wonder if you would have trouble getting that since it is a 5k limit?

Citi TY has 2% on dining.

If you have a US Bank I think you could do 5% on dining (although fast food is a different 5% category)

Discover IT is 5% in 1st Quarter for Restaurants.

[wiivile]

U.S. Bank Cash+ seems to be a great option, but I have heard bad things about their customer service/website and also I don't have a branch anywhere near me so it'd be hard to even apply.

Do you know if I could get the CSP, and then when my annual fee is due after 2 years, if I haven't been spending enough to justify the annual fee, just downgrade to the regular Sapphire without penalty? I'd still get 2x points on dining which is what I value...

[Luscher]

yes you can downgrade after the first year.

[takeshi74]

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@wiivile wrote:

Any other cards I should consider over the CSP, especially since my annual spend isn't really high enough to justify a big annual fee?

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What would justify an annual fee for you?  Depending on redemption method, 9,500 points could be the break even point for the CSP.  I'd suggest taking it a spin for the first AF free year and seeing how it suits you if you're not sure.

[cjradinfo]

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@wiivile wrote:

I need a second credit card to increase my credit limit total and also my total number of accounts... my only open account on my credit report is my Chase Freedom card. Have no debt/loans/etc. ~750 credit score.

I have over 110,000 UR points on my Chase Freedom. Most of my charges are at restaurants. Live in NYC and eat out every night, so no gas or groceries (sorry AMEX Blue Cash...)

Obviously getting the CSP would give me my best redemption options in terms of travel, and with the sign up bonus give me 150,000 points total, but I don't know if I spend enough to justify the $95 annual fee. My annual spend is only around $12,000, which is pretty low for a card with an annual fee. On the other hand, since most of my charges are at restauants, 2x points on dining is good.

The regular Sapphire (no annual fee) still gives me 2x points on dining but doesn't help in terms of point redemption. It's basically the same as the Freedom in terms of redemption, right?

Any other cards I should consider over the CSP, especially since my annual spend isn't really high enough to justify a big annual fee? Should ideally award me based on my eating-out habits.

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With regards to the annual spend not being high enough to justify a big annual fee consider the following (especially if you're thinking about just the CS instead):

Sign-up bonus: 10k (CS) vs. 40k (CSP) - That's 3 years worth of annual fees in points (not even counting any points you get back from the 7% or the bonus points earned from travel, which isn't just flights and hotels, it also counts for taxis, airport parking, etc.)

1:1 transfer ratio: You can effectively double (sometimes more) your point value using the 1:1 transfer to travel partners from the CSP which isn't something you could do with the regular CS.  Example: You have 110k in UR already (which is awesome, I'm super jealous).  With the CS (+10k) and Freedom you could redeem everything for $1,200 or maybe even a little bit more (but for now let's call it $1,200).  Compare to CSP (+40k and 1:1 transfer), you now have 150k, which could transfer to United, Southwest, Hyatt (probably one of the better transfer values), etc.  I'm planning out a ski vacation in Beaver Creek this winter and the ski resort there would cost $600 - $700 a night.  Luckily, Hyatt points are sweet and I can get that night for 22k points.  If I had as many points as you and wanted to stay there for 6 night (132k points) I would get a conservative $3,600 value out of my points which I wouldn't have gotten out of the CS (that's a lot of AFs). 

This is an extreme example and is dependent on your spending/vacationing preferences. 

My annual spend is probably close to yours and I still think the CSP is well worth it.  There are also a lot of online blog posts/articles on the additional benefits of the CSP vs. CS.  It's all personal preference and I totally get the aversion from the $95 AF, but if you're trying to decide between the CSP and CS I'd definitely recommend the CSP. 

Sincerely,

-Hardcore CSP fanboy

[wiivile]

Justifying the annual fee, to me, means that the card should have better points-earnings potential than a non-annual fee card. If I earn 20,000 points a year with CSP, you have to effectively subtract 9,500 points from that. (net 10,500). I think I would be earning more than 10,500 points a year on the Freedom because there's no fee to subtract.

I agree with you that the CSP is ideal in the short-term (2 years), because my current 150,000 UR points on CSP would score me a couple of roundtrip international flights if transferred strategically to United or other partners. In the long-term, however, once my current points have been redeemed, I'm not sure that I'll be earning enough points to not only cancel out the annual fee, but also earn rewards.

Seems I should try the CSP for two years to redeem points and before the annual fee hits at the end of the second year, if I'm not earning enough points to justify the annual fee, downgrade to the regular Sapphire (which is still better than the Freedom for restaurants for the 9 months when restaurants is not a Freedom 5% category).

I like the Barclaycard Arrival much more than the CSP, because it gives 2x points on everything, so it's a much better reward-earning card than the CSP. However, since I already have these UR points, getting the Arrival would set me back to square one.

[navigatethis12]

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@wiivile wrote:

Seems I should try the CSP for two years to redeem points and before the annual fee hits at the end of the second year, if I'm not earning enough points to justify the annual fee, downgrade to the regular Sapphire (which is still better than the Freedom for restaurants for the 9 months when restaurants is not a Freedom 5% category).

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The annual fee is charged at the beginning of the second year, not the end.

[Anonymous]

I would recommend you go on a little mini spree:

1) Get a 1.5 or 2% cash back card.  Look at Fidelity Visa/AMEX or Cap One QS.  Good for random spending and locking your minimum rewards at 1.5% or 2% is a good thing.

2) Go for no AF AMEX revolver:  Protections on AMEX are flat out better on AMEXs vs all VISA/MC.  Doesn't matter what the terms are, AMEX protections are easier to use etc.  Also, trust me, you want to get in with AMEX as early as possible for the future backdating.  Since no AF, just put small recurring charge and auto pay and forget card if you don't really like it.

3) US Bank Cash+: Even though they nerfed this card, the 2k a quarter 5% limit doesn't seem like it will impact you really.  Since you can do 5% on restaurants, you should clean up.

Between those 3 cards, you are probably set for some time to come.  The only card you have to worry about being nerfed is possibly the Cash+ card but I think you are good.

[wiivile]

What is an AMEX "revolver"?