@Anonymous wrote:
@Anonymous wrote:Let's take Chase for an example. I have heard that a Chase Ultimate Rewards point is worth 1.25 cents when redeemed for travel. This is very good, however, why would anyone get a Chase Freedom Unlimited card with a 1.5x return (or 1.5 * 1.25 = 1.875%) instead of Citi Double Cash which gives 2% cash back. Couldn't one simply use the cash they get back from the 2% cash back card and put it towards travel? Or is there something that I am missing?
lol good you posted this thread late because people would have eaten this all up earlier on the day. There has been a Chase fever lately.. not sure what all the hype is all about either with the FU card.
I think it comes down to preference - some people prefer cash back while others who have multiple products with Chase (Freedom, Ink, CSP, and FU) have ample opportunity to earn points and redeem for higher value towards travel. I think the FU alone wouldn't really be a game changer, but combined with other Chase cards it makes somewhat of a difference.
Also don't forget with Chase UR points you can redeem those points for Cashback too without losing face value - however you can get more value when you redeem the points for Travel.
I personally don't travel as much as I want to and I don't think all the hassle of combining 3-4 cards is worth it to me to save 10-25% off. I have been savvy enough to locate good deals by some googling and watching price trends. If I see myself travelling heavily then I can see how having these Chase cards would be beneficial. To each their own!
A Flat 1.5X UR points which you can transfer to the CSP which can than be transfer elsewhere..... That alone tells you the story why its worth getting the FU if you're invested in UR points.
@kdm31091 wrote:You have to look at how things get skewed, also. Many people (not all) generally collect the hotel/airline cards for the sign up bonus which often provides enough rewards for a free flight / some free nights / etc. Beyond that, though, earning 1 point per dollar on everyday spending just isn't worthwhile most of the time, so the cards end up SD. So people may have a lot of the point cards, but they often don't use them much after the bonus. It would appear by glancing at signatures that the IHG card is quite popular, and it is, but it's because it gives an annual free night and some other perks -- it's not as if people are really using it for spending.
So, if we're talking about long term use cards for spending, I think point cards that are tied to an airline or hotel are generally a poor choice. The more flexible point cards like a Chase Sapphire Preferred or Amex MR earning cards can give you points that you can do many things with, but the value is only going to be worthwhile for certain redemptions (otherwise, still could have earned more with using cash back). People who travel a lot, especially international, first class, will benefit the most. Otherwise, cash back may be a better choice.
Eh $7,500 in spending on AA cards is enough for a free flight I believe depending on location. Flights to LA and elsewhere in around the same distance was 12k in points. $12,000 in spending will get you a round trip to LA from NYC. If you fly a lot on AA you get 2X points so its $6,000 in spending should you spend that much on the airplane.... Plus it offers Group 1 boarding, free checked bag for you and up to 4 other people on the same purchase of tickets and some other stuff which makes it worth it alone if you fly more than 3-4 times a year and you have luggage. $95 AF and I believe one checked bag is normally $25-$35 or so?
@Anonymous wrote:
@Open123 wrote:
@Anonymous wrote:Even if you spend 100k a year on a 1.5% cash back, that won't even come close to equaling the amount of free travel you can get with points. Cash back cards have their place, but generally travel cards will provide much more value.
Cash rewards are only the best when a person: (1) never travels; (2) never intends to travel; (3) if forced to travel, will never opt for a plane or stay in any hotels; (4) if forced to use air travel, will only pay for the cheapest tix on orbitz; (5) if forced into a hotel, will choose the cheapest on hotwire.com; and, (6) will never have need to cross any major bodies of water.
Then, as in Vegas, cash is king.
*Edited* Even if one drives and travels on trains/ships, some rewards cards may trump cash.
Well my whole point of view on this is:
1. A lot of people get travel cards thinking they will travel / use their cards after they have redeemed their sign up bonus for one big trip - but in reality they are either SD'd or have low spend on them where the points are not enough to do anything with them.
2. The annual fees on some of the cards don't justify how much these type of people earn back from using the cards.
3. I think travel cards w/ points are great only when you frequently travel or have a few big trips throughout the year. Subsequently you can put your spend on these various cards that give you points back and rack up the points to use towards these trips.
4. Sometimes the partners on these cards don't fit the anticipated travel plans so the points cannot be used (this is not so common but can happen).
Jetblue offers a free version so even with low spending youll eventually get a free flight..... The AF version also offers 5,000 points annually so youll get enough for one flight every year. That flight is well worth the $99 AF since the flights I have checked with Jetblue to say from NYC to Boston would cost way more than $99 and you can get a flight to Boston from NYC for under 5,000 points..... Also offers free checked bags with most of the airline cards which pays itself off after a few trips as well. You don't need to spend hig to utlilize the card correctly and benefit from it.
