Optimal Rewards Strategy & Keeper Cards

[Anonymous]

So it finally dawned on me that SUB rewards can be much higher than my beloved no annual fee 5% cash back cards.  SUBs can result in up to 20% or more in rewards vs. the spend required to get the reward.

Most of the best SUBs are cards that come with annual fees.  If the card with a nice SUB is a "keeper," then it clearly makes sense to get these cards despite the annual fee.  I would define a "keeper" as a card that offers an ongoing benefit (after the SUB) which is materially greater than the annual fee.

For example, the SPG card with a free award night is worth more than twice as much as the $95 annual fee.  Same for the Chase IHG and World of Hyatt cards where the free award night is worth a lot more than the $89 annual fee.  

So I decided to keep my SPG card (and ask for a retention bonus).  This morning, I signed up and got approved for the IHG card.  I figure the 100K points is worth at least $600 in hotel stays for $3K in spend (at least 20% ROI).  

What are some of the other high SUB cards with annual fees that you would define as "keepers"?  

[Brian_Earl_Spilner]

It's subjective. I dont travel enough that any of those, or any travel cards would benefit me. Cashback is better for my spend, so what's a keeper to me, won't be to you.

[Kforce]

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@Brian_Earl_Spilner wrote:

It's subjective. I dont travel enough that any of those, or any travel cards would benefit me. Cashback is better for my spend, so what's a keeper to me, won't be to you.

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+ 100

[Anonymous]

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@Brian_Earl_Spilner wrote:

It's subjective. I dont travel enough that any of those, or any travel cards would benefit me. Cashback is better for my spend, so what's a keeper to me, won't be to you.

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Fair enough.  

For me, I get 2 free rounds of golf per month at various courses outside of Houston.  Having one "free" night in Austin (i.e. a hotel room for the cost of the annual CC fee) several times a year means I get to play a great golf course twice for nothing several times per year.  I could do the same on my own dime, it would be more expensive.

I was looking at the Alaska Air card.  At a $75 annual fee, they offer a free companion fare each year, and fly direct from Houston to LAX & Seattle.  One stop to San Fran, San Diego, Portland, Las Vegas etc.  If I took a companion to the West Coast once a year, it would be worth it.  I'd have to think about it.  Might be a "keeper."

[Brian_Earl_Spilner]

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@Anonymous wrote:

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@Brian_Earl_Spilner wrote:

It's subjective. I dont travel enough that any of those, or any travel cards would benefit me. Cashback is better for my spend, so what's a keeper to me, won't be to you.

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Fair enough.  

For me, I get 2 free rounds of golf per month at various courses outside of Houston.  Having one "free" night in Austin (i.e. a hotel room for the cost of the annual CC fee) several times a year means I get to play a great golf course twice for nothing several times per year.  I could do the same on my own dime, it would be more expensive.

I was looking at the Alaska Air card.  At a $75 annual fee, they offer a free companion fare each year, and fly direct from Houston to LAX & Seattle.  One stop to San Fran, San Diego, Portland, Las Vegas etc.  If I took a companion to the West Coast once a year, it would be worth it.  I'd have to think about it.  Might be a "keeper."

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Alaska Air has a limited partnership for miles. You could partner in American Airlines as long as the flight was coded correctly. Are you locked into Alaska Air, or open to alternatives?

[UpperNwGuy]

The best keeper card is the Chase Sapphire Reserve, but you have to use it.  It's not a good card if you put in a crowded wallet with a bunch of Amex charge cards, hotel cards, and airline cards.  It's really the only travel card you need.

[imaximous]

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@Anonymous wrote:

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@Brian_Earl_Spilner wrote:

It's subjective. I dont travel enough that any of those, or any travel cards would benefit me. Cashback is better for my spend, so what's a keeper to me, won't be to you.

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Fair enough.  

For me, I get 2 free rounds of golf per month at various courses outside of Houston.  Having one "free" night in Austin (i.e. a hotel room for the cost of the annual CC fee) several times a year means I get to play a great golf course twice for nothing several times per year.  I could do the same on my own dime, it would be more expensive.

I was looking at the Alaska Air card.  At a $75 annual fee, they offer a free companion fare each year, and fly direct from Houston to LAX & Seattle.  One stop to San Fran, San Diego, Portland, Las Vegas etc.  If I took a companion to the West Coast once a year, it would be worth it.  I'd have to think about it.  Might be a "keeper."

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The Alaska card is worth it if the ticket costs more than $75 + $99 (annual companion fee) + taxes. Basically, if those flights that you're looking at can be purchased for about $200, you're only breaking even because of all those fees.

We have 2 Alaska cards and always look to max out the value of the companion fee with trips that cost a lot more, like going to Hawaii during peak season for over $1,000.

Also, the great thing about Alaska is that you can maximize travel by adding stopovers at no additional cost. If you know how to play that game, you can get a couple of trips for the cost of one.

[TheBoondocks]

Yup, true! It's $197 a year if you add the companion pass, but it wouldn't be $197, it would be $75 if you don't so I feel like you're paying for nothing unless you actually use the companion pass. You do save a lot of money, even if you have somebody that could split the cost, even better lol. I thought about it, but I got denied lol... It's all good, I'ma pick up the Hyatt soon.

To me, I feel like the IHG and Hyatt is keeper cards, I really though about the SPG card but its not stable and they keep changing the structure. I looked into the Aspire, I like that you could use the $250 for airlines, and $250 for hotel/resort, $50 just to keep. If you make a profit, then it should be a keeper card but it's not for everybody.

[mkhan1093]

As has been hinted at by others, what constitutes a "keeper" card varies based on different peoples' lifestyles and spending habits. If you don't travel, even a card offering a free night with a $10 AF would be a waste of $10. In general, for travelers, cards that offer free hotel nights are often deemed keepers and the majority of them have already been mentioned: SPG personal/business/luxury, IHG, Hyatt. Cards which offer companion passes are good for people who travel with others such as a SO; the Platinum Delta Skymiles from Amex comes to mind. All in all, assess your personal lifestyle and see what benefits you can get that outweigh an AF for next to nothing in spend/effort.