Why are you paying the AF for CSP?

[IWOL]

I've had a lot of success with getting some kind of retention bonus or statement credit from Chase to cover the annual fee on several of my Chase cards.

This year I have gotten the following:

UA Expolrer $95 statement credit

CSP - 10k UR with $2k spend in 3 months

INK Plus - $95 statement credit

When my a Ritz and. Marriot hit 1 year I will see what I can get on those.

I think most people never call to check on a retention bonus and they are always YMMV and may be dependent on spend etc but always worth a  quick call. 

[red259]

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@Anonymous wrote:

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@Anonymous wrote:

currently the card has a bonus of 400$ which takes care of the annual fee four times, first year is free, so actually the card can be five years fee free.

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This sort of argument makes me want to, well, let's not go there....

It ignores the sequence of events.    

1) I get the card

2) In the first three months, I spend the required amount ($4K now for most)

3) Within a statement or two, I got the 40K UR.

4) Several months later, I am charged the annual fee.   I can pay or cancel.  If I pay, I have the same choices each year.

So whatever the bonus, I have it, cash in hand (or UR in hand if I intend to transfer).   The question each AF time is simply: are the benefits worth the fee (for me)?   Not that "It's free because I got so much year one", it isn't free, it's $95 and I need to decide, will that $95 be well spent.

But I agree with your other points!

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+1 This logic drives me nuts as well. If money is coming out of your pocket your paying for it! 

[Anonymous]

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@Anonymous wrote:

CSP has some close competition with the Citi TYP and Amex PRG updates. I use the CSP for the following reasons. 

1. I have an average redemption value of over 3 cents per UR point. This makes the CSP a 3%/6% card. 

2. While I value UR points at closer to 2.5 cents per point, that still makes it a 5% card for 2x categories. 

3. I have relatively high restaurant and travel spend. About half my CC expenses fall in these two categories and I have yet to find a better than 5% card (or even no cost 5% card) for those two categories. 

4. None of my 5% category spending cards give a 5% bonus for restaurants and travel. The US Bank Cash+ was a decent deal before, but it has been nerfed and I don't want it. All my current 5% cards are for other categories. 

The CSP is a great card for people who have at least 30-40k spend on it per year in 2x categories and who are patient enough to redeem first or business class international travel (i.e. save up till well over 100k points before using the points). For people who don't have high spend in bonus categories or people who have low spend (or little patience to stock pile points over years), the CSP is not so good. For most people, the CSP is a decent card for at least the first year with the bonus and waived AF. If Citi gets better transfer partners though, I might swap to the TYP. For now though, Chase UR points are more valuable for me. I currently have the PRG and CSP, but don't plan on renewing the PRG unless offered a retention bonus. The CSP, however, has been renewed a few times. 

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Please tell me how you get 5% equivalency for the 2x categories. Really interested. 

[Anonymous]

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@IWOL wrote:

I've had a lot of success with getting some kind of retention bonus or statement credit from Chase to cover the annual fee on several of my Chase cards.

This year I have gotten the following:

UA Expolrer $95 statement credit

CSP - 10k UR with $2k spend in 3 months

INK Plus - $95 statement credit

When my a Ritz and. Marriot hit 1 year I will see what I can get on those.

I think most people never call to check on a retention bonus and they are always YMMV and may be dependent on spend etc but always worth a  quick call. 

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None for CSP? (Can't tell if you have one)

[Anonymous]

But..it's free money you wouldn't have earned without the card--it's not my logic just one I have heard from someone there trying to sell me the card--ironically I applied myself now online a year later

But, it's not totally illogical as the 4k you spent to get it, you still get points for that 4k spent no?

But it's okay, Im from a sales bkgd and I used to justify 4 figure purses by dividing it by 365 to break down the price

[happypill]

I prefer cash back as well, but folks with flexible redemption requirements can get great value out of points transfer with the CSP.  The bottom line is, this card really doesn't make sense for most college students like the OP (well the sign-on bonus is good for everyone who can meet the spend).  This type of card makes sense for people who have significantly higher spend than the average college student.  People who travel moderately for work can rack up $5k+ per month easy.  Combine that with personal spending and $100k per year of expenses make this type of card very attractive (again, if you're willing to deal with the redemption rigamoral).

Every card doesn't make sense for every person.  Some cards make no sense for certain people and at the same time are outstanding for others.

[kdm31091]

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@happypill wrote:

I prefer cash back as well, but folks with flexible redemption requirements can get great value out of points transfer with the CSP.  The bottom line is, this card really doesn't make sense for most college students like the OP (well the sign-on bonus is good for everyone who can meet the spend).  This type of card makes sense for people who have significantly higher spend than the average college student.  People who travel moderately for work can rack up $5k+ per month easy.  Combine that with personal spending and $100k per year of expenses make this type of card very attractive (again, if you're willing to deal with the redemption rigamoral).

Every card doesn't make sense for every person.  Some cards make no sense for certain people and at the same time are outstanding for others.

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I would agree, OP. You don't always need a "travel card" for occasional, random trips, nor is CSP the best dining reward card for someone on a budget (the rewards will take a looong time to outpace the fee).

CSP has its value -- mostly for high spend, high income, and heavy traveler. Some people get it, falling for the popularity, and realize it doesn't work for them. You have to run the numbers. How much must you spend on dining/travel to even get to $95, much less make a "profit" in rewards? Roughly 4500 or so on just dining/travel will get you about $95 in rewards. However, on a no AF card, you'd be +95, and with CSP, you'd still be at 0, and 4500 is quite a lot of spend for dining (375 a month). The point is that you need to be spending heavily or it makes little sense over free alternatives.

There are plenty of no AF cards with 2x dining (or 2% in general!) that would, IMO, be a better fit for someone who's a college student/lower income/etc.

[Anonymous]

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@Anonymous wrote:
But..it's free money you wouldn't have earned without the card--it's not my logic just one I have heard from someone there trying to sell me the card--ironically I applied myself now online a year later

But, it's not totally illogical as the 4k you spent to get it, you still get points for that 4k spent no?

But it's okay, Im from a sales bkgd and I used to justify 4 figure purses by dividing it by 365 to break down the price

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I think you are missing my point, I'm not saying the bonus isn't (more or less) free money.  The point is once you get it, it shouldn't factor into the decision as to whether to pay the AF, as the bonus is yours whatever you do.

I agree it's not just your reasoning,  I've seen it many times, hence why I find it annoying!

[Anonymous]

For me it was an easy decision.

First of all I combined my $400 CSP bonus with my $200 Freedom bonus so I had close to 80,000 UR points in the first few months.

And the point number to pay the AF would technically be 9,500 or even less if you use your points for travel, as you receive a 20% bonus.

I also book thousands of dollars worth of flights on it per year so the points I receive from this more than pay for the AF.

The point redemption is easy and I can transfer it to United and Marriott if I want to, plus the 'Shop Through Chase' portal lets you pay for normal retail items and receive points also.

I can understand your point of view when asking this, but you are most likely looking at it from a perspective of someone who doesn't travel a lot.

A 5% card like the Sallie Mae for gas and groceries is a great card for the most of us, but it is not going to help you a lot if you travel.

You have to pay a FTF and it also has no travel perks or redemption options.

I think if someone has to worry about the AF, they clearly don't travel/spend enough and they should consider another card...

[takeshi74]

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@Anonymous wrote:

Why do people who have CSP over a year like it so much? How do you choose this card instead of using others that have 5% bonus in order to gain UR points? Overall, why do you choose to keep this card after a year? 

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Rewards on my spend.  Instead of polling you need to run the numbers for your spend and look at redemptions to see if you can make the best value of each UR point.  And, of course, factor in the AF for a total cost/benefit analysis.

5x is great but it's only on certain categories and capped at $1,500/quarter.  My CSP generates significantly more rewards than my Freedom.  However, my spend may not be the same as yours.  You may not be able to make use of the same redemption options as me.

You might also want to consider running your non-category spend against a 2% or 1.5% on all spend cash back card to see if that might work better for you.

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@Anonymous wrote:

I was wondering why so many people value the point system so much with the UR transfers/airline partners and to see if it was really more beneficial than straight up cashback. 

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It can be.  It can also not be.  It all depends on the specifics around an individual and is not a one-size-fits-all matter.