Credit Cards
- Thread starter AgronAlum
- Start date
We use the SoFI CC, which has 2% cash back on everything. Then I invest that 2% in index funds through SoFi. I think of it like a self-imposed tax on our spending
Savor one is great if you have a lot of entertainment stuff.
Quite frankly I'd go with 2-3 cards and maximize points rewards by using them (primarily) for certain items. Some give 5% back on fuel, some (Savor) high on entertainment type stuff, while others are groceries. Look what you spend you money on and go from there.
Now, I have my own business so I have a ton of cards depending on what is needed. If you are a big spender and love to travel it's hard to beat the SW rewards card IF you can spend enough for the companion pass. The companion of your choice (have to choose quarterly...only downside) then flies free with any SW flight you book. It's great for couples with no kids as you can do a lot of VERY cheap getaways. The more you fly, the more the card/pass is worth. Once gained for the upcoming year, you then do the math on which card gets you the most points/dollars back. Usually the math on the SW points accrual would be less than the perks on another card meaning the rewards card isn't as valuable at that point.
Just play the game (smartly) and you get the most out of your card. Also, provided you are responsible enough with it everyone should be using CC. Dealing with fraud is so much easier, as well as less risky, than using a debit card.
The first thing that popped up in my head upon seeing the thread title
If you want travel rewards flyertalk forum is really good. Those posters know how to stretch points
I know they had several commercials over the years but this post Christmas Consumer Credit of Des Moines video was literally the one I thought of when I saw the picture of him on your post! Thanks for sharing this blast from the past.
We have an Delta AMEX & Marriott Visa we pay off every month to use for free trips with all the points we rack up.
That's the one I was looking for too. These commercials still air on the the local news channels during the holiday seasons in the Des Moines metro.
Yeah you need to go all in or you don't get any value out of it.
My wife, I, and 3 kids are flying to Hawaii in December for free. If you go all in, you can do cool stuff like that. Getting a free night at a hotel once in a while is nice but that's not what I do it for.
I just get cash back or cancel out airline tickets and hotels with my points. Do travel credit cards really get more value?
COSTCO routinely has $500 airline gift cards on sale for $400-$450. E-delivery and they can stack when redeemed.
I always check that before booking anymore.
It depends on the card and what you consider to be valuable. I recommend a travel card (of some sort) for the airline you most frequently use and another card that makes more sense for every day purchases.
The travel cards get you a lot of perks when flying/traveling but you have to find the right one for your specific situation otherwise they are a worse deal overall.
I was just coming in to say this exact same thing! My wife and I have a Delta American Express. She got me in the habit of using it for every gas purchase and grocery stops (which face it in a family of 5 is just about every day!). Pay it off monthly when the bill comes. Oddly enough the points save us around $400 a year on flights for our vacation.
I also have a Discover Card in my wallet that I use when I encounter a place that doesnt take American Express (which is becoming less and less frequent). Discover was the only card company to give me a $500 limit when I turned 18 and didnt require my parents to be on the account. Been with them ever since until my wife convinced me to go the American Express route.
so, travel cards are really only useful if you're earning your points from travel not every day use? I'm the latter but want to use the points for travel.
The best for that scenario (assuming you are okay with a moderate annual fee) is probably something like a Chase Sapphire Preferred, Amex Gold, Citi Premier.
Useful just not as much.
For example, I received 100k miles for signing up for an American Express Gold.
I used 90k of those miles to purchase $900 in airfare(2 roundtrip tickets) on United to Honduras. (1 cent per mile value)
If I would have been crafty, I could have transferred the points to a United partner and then use those miles to book the same flights but it would of only cost me 80k points. (1.125 cents per mile value)
If you try hard enough and are very flexible, you can earn 2 cents per mile value.
I get value out of the card, just not as much as I could. I probably put $10k on that card per year, which earns me about 40,000 miles, which are worth about $400 to me. The $250/year fee is wiped out by me getting an Uber(eats or rides) and Grubhub credit of $20/month. I don't love playing the AmEx games to get these credits but it's not terrible and like I said, my wife likes the rose gold heavy card
Capital One Venture X has been the easiest card to manage for me so far.
$400 Annual Fee
lounge access-U.S. ones tend to suck but European ones are generally good
statement credits for travel ($300) for any travel booked anywhere
Global Entry reimbursement ($100x2) every 5 years
Yearly 10,000 free miles ($100)
I've looked at AmEx Platinum but way too many hoops to jump through for me and the $700 yearly fee. If I was a serious traveler, I could probably justify it. Oh and you have to pay $200 for each additional card.
I had Chase Sapphire Reserve and I've passed the time frame to get another credit so I may get a Chase Sapphire Preferred in the future, which only costs $95.
I have a self imposed limit of 3 cards at one time. It's good to not close credit cards but I don't care, my credit is fine. I was worried about having to unfreeze my credit while getting a new card but it really is simple and I just do it for like 2 days.
$400 Annual Fee
lounge access-U.S. ones tend to suck but European ones are generally good
statement credits for travel ($300) for any travel booked anywhere
Global Entry reimbursement ($100x2) every 5 years
Yearly 10,000 free miles ($100)
I've looked at AmEx Platinum but way too many hoops to jump through for me and the $700 yearly fee. If I was a serious traveler, I could probably justify it. Oh and you have to pay $200 for each additional card.
I had Chase Sapphire Reserve and I've passed the time frame to get another credit so I may get a Chase Sapphire Preferred in the future, which only costs $95.
I have a self imposed limit of 3 cards at one time. It's good to not close credit cards but I don't care, my credit is fine. I was worried about having to unfreeze my credit while getting a new card but it really is simple and I just do it for like 2 days.
I think the sapphire reserve is awesome but if you have the capital one it might be redundant.
In that case I would go with the sapphire reserve card. People get scared off due to the fee but you get 300 back as a credit every year for travel and the perks are amazing.
The dedicated travel cards have a ton of perks related to travel but only with that specific company. Things like free tsa precheck, lounge access, flight vouchers, upgrades, free checked bags, better flight options, etc. If you travel a bit those things can be extremely worth it. If you don’t you’re much better off with a sapphire reserve.
In reality I think everyone should have two, one you use for the travel perks, and one you use for every day purchases that build up points in the areas you spend the most.