Question
Before I start, I apologize for being another newbie asking for "me-specific" guidance. Second, thanks to everyone who has written info. I feel like I'm halfway there.
Here's a bit about me and my situation: I got myself out of all credit card debt three years ago and now I pay only with my check card. I'm in real estate (independent contractor) and only travel to see friends or go home (probably once a month travel on the weekend). I RARELY stay in hotels. I usually fly America West(USAIR), American, Continental or Southwest. Never United or Delta.
Now that I'm financially savvy enough, I am planning on using the credit card(s) to keep track of business lunches/dinners, gas, etc. I'm also planning on using it for personal things like groceries, Costco purchases, bills, etc. In fact, I just bought a couch from JCPenney for $1500 and put it on the JCP card (and then within the month will use the new CC to pay it off and get the miles). I'm guessing I'll probably spend $30 - 60k on it per year.
After reading, it appears a LOT of people like the SPG Amex, but I'm concerned that I won't get a lot of value from it since I never stay in hotels. Also, I'd like to have an AMEX option and a MC/VISA option in case places don't accept AMEX. I was also thinking about a Southwest Visa or American one, but not sure which. I'm also wondering if there's any advantage to getting a business one vs. a personal one since I'm an independent contractor?
So in a nutshell...dilemmas are as follows:
1 CC vs. 2 CCs
Business vs. Personal card
SPG Amex vs. Cash Back card
Southwest VISA vs. American VISA vs. SPG Amex (pick 1 of 3 or 2 of 3?)
Thanks in advance. Seriously.
Answer
Welcome to FT
No one can tell you what to choose, however with that said:
You are an independent contractor so you can put all transactions on one card. If you choose two you might want to go with the AA MC (it is not a visa unless it is business) and a cash back AX card. The Southwest is not that great a card and really has nothing special to offer. US has two competing cards to choose from and both offer a bonus of miles and line jumping. Business cards do not offer the protections of a personal card. You are protected from fraud and other problems on personal cards that is not offered to business cards. Now if you want to learn more do a search on the forum tab at the top of the page and check the US air forum and the AA forum for more details. Costco has an AX that might be interesting to you as well and you can search for those threads too. Spend more time reading and I am sure you will find what you are looking for.
Answer
just bought a couch from JCPenney for $1500 and put it on the JCP card (and then within the month will use the new CC to pay it off and get the miles).
So in a nutshell...dilemmas are as follows:
1 CC vs. 2 CCs
Business vs. Personal card
SPG Amex vs. Cash Back card
Southwest VISA vs. American VISA vs. SPG Amex (pick 1 of 3 or 2 of 3?)
0. Very few cards will allow you to earn miles or points for a balance transfer. It is unlikely the JC Penney purchase will yield anything.
1. It is sensible to have more than one account. Your card could be stolen, lost, damaged, frozen due to a misdirected payment or unusual activity, or there could be a technical problem with the authorization network or the issuer's database. I would prefer to have one each American Express, Mastercard and VISA each issued by a different bank for maximum reliability and flexibility. Of course you don't need to get all of these simultaneously and you need not use them equally.
3. When you fly, how much do you typically pay? You mentioned four different airlines, is this because you choose whoever has the lowest fare or are you flying to various destinations not served by a single carrier? How far in advance can you plan your trips?
dennis
Answer
Welcome to FT
No one can tell you what to choose, however with that said:
You are an independent contractor so you can put all transactions on one card. If you choose two you might want to go with the AA MC (it is not a visa unless it is business) and a cash back AX card. The Southwest is not that great a card and really has nothing special to offer. US has two competing cards to choose from and both offer a bonus of miles and line jumping. Business cards do not offer the protections of a personal card. You are protected from fraud and other problems on personal cards that is not offered to business cards. Now if you want to learn more do a search on the forum tab at the top of the page and check the US air forum and the AA forum for more details. Costco has an AX that might be interesting to you as well and you can search for those threads too. Spend more time reading and I am sure you will find what you are looking for.
This is good advice. Any idea on which AX card you like? The SPG or should I get one at Costco?
Answer
0. Very few cards will allow you to earn miles or points for a balance transfer. It is unlikely the JC Penney purchase will yield anything.
1. It is sensible to have more than one account. Your card could be stolen, lost, damaged, frozen due to a misdirected payment or unusual activity, or there could be a technical problem with the authorization network or the issuer's database. I would prefer to have one each American Express, Mastercard and VISA each issued by a different bank for maximum reliability and flexibility. Of course you don't need to get all of these simultaneously and you need not use them equally.
3. When you fly, how much do you typically pay? You mentioned four different airlines, is this because you choose whoever has the lowest fare or are you flying to various destinations not served by a single carrier? How far in advance can you plan your trips?
dennis
0 - Shoot... so you think I can't use the AX or the VISA to get those miles? Know of any cards that would give some mileage for that?
1 - Good point
3 - I try to pay the cheapest amount and not that far in advance. Usually 2-3 weeks. Usually the same destinations in southern California.
I have a 100k+ miles on American... not many on America West, but wouldn't mind getting some more.
Answer
... I'm in real estate (independent contractor) and only travel to see friends or go home (probably once a month travel on the weekend). I RARELY stay in hotels....
... I am planning on using the credit card(s) to keep track of business lunches/dinners, gas, etc. I'm also planning on using it for personal things like groceries, Costco purchases, bills, etc. In fact, I just bought a couch from JCPenney for $1500 and put it on the JCP card (and then within the month will use the new CC to pay it off and get the miles). I'm guessing I'll probably spend $30 - 60k on it per year.
After reading, it appears a LOT of people like the SPG Amex, but I'm concerned that I won't get a lot of value from it since I never stay in hotels. Also, I'd like to have an AMEX option and a MC/VISA option in case places don't accept AMEX...
So in a nutshell...dilemmas are as follows:
1 CC vs. 2 CCs
Business vs. Personal card
SPG Amex vs. Cash Back card
Thanks in advance. Seriously.
Since it sounds like you're spending a lot on restaurants, gas, groceries, and utilities and not so much on travel, you'll probably be looking at cards that give better rewards for EDP ("everyday purchases" (gas, grocery, drugs)) and cards that give good rewards at restaurants (a few as high as 3%).
However, it really depends on your categorical spending pattern. I'd suggest plugging your categorical spend amounts into the calculator at http://www.creditcardtuneup.com/ (http://www.creditcardtuneup.com/) and see what it suggests.
Use both the personal card mode and the business card mode since business cards are an option for you and some of them are pretty sweet.
That tool can also give you an idea of how much additional reward you'll get for managing 2 (or more) cards instead of just 1.
I think SPG Amex points are often valued at about 1.25 cents apiece (though it's been a while since I thought about that, could be wrong) so you can compare that card to others with a quick manual calculation.
Answer
0 - Shoot... so you think I can't use the AX or the VISA to get those miles? Know of any cards that would give some mileage for that?
Relevant new discussion in another message section...
http://flyertalk.com/forum/showthread.php?p=6995230#post6995230
...which I assume a moderator will move to this section.
Answer
Duke-
Your spending sounds about like mine. Here's what I recommend.
Since you don't travel exclusively on one airline, I wouldn't get an airline specific card.
Since you shop at Costco, you definitely need and AMEX. There are no cards that pay more than 1% back at Costco that I'm aware of. So what I did was get the Citi PremierPass Amex which gets me 1 flight pt per 3 miles flown. Now, I get 2 TY points per $1 at Costco since I can match up a purchase point with a flight point. I basically use this card for all flights, at Costco, and anywhere else my other cards don't get me more than 1%. The bonus of the Thank You points is that you can book flights with no blackout dates, and still earn miles on whatever airline the free flights are booked on.
Your second card should be a Visa or MC that gets you good rewards on groceries/gas. I have the Citi Diamond preferred rewards card which gives me 5 TY pts per dollar for gas/grocieries/drug stores. They have changed the terms so that the 5% only last for the first year now, but you could switch it over to another Citi card after that first year.
The advantage to going with 2 citicards would be building up your Thank You Points faster to get rewards sooner.
The only thing not covered would be restaurants, but if you use the PremierPass you would get 2% back there.
Answer
Duke-
Your spending sounds about like mine. Here's what I recommend.
Since you don't travel exclusively on one airline, I wouldn't get an airline specific card.
Since you shop at Costco, you definitely need and AMEX. There are no cards that pay more than 1% back at Costco that I'm aware of. So what I did was get the Citi PremierPass Amex which gets me 1 flight pt per 3 miles flown. Now, I get 2 TY points per $1 at Costco since I can match up a purchase point with a flight point. I basically use this card for all flights, at Costco, and anywhere else my other cards don't get me more than 1%. The bonus of the Thank You points is that you can book flights with no blackout dates, and still earn miles on whatever airline the free flights are booked on.
Your second card should be a Visa or MC that gets you good rewards on groceries/gas. I have the Citi Diamond preferred rewards card which gives me 5 TY pts per dollar for gas/grocieries/drug stores. They have changed the terms so that the 5% only last for the first year now, but you could switch it over to another Citi card after that first year.
The advantage to going with 2 citicards would be building up your Thank You Points faster to get rewards sooner.
The only thing not covered would be restaurants, but if you use the PremierPass you would get 2% back there.
Citi Professional offers 3pts per $ at restaurants.
Answer
Thank you everyone. I've narrowed down the 2 as follows:
1. Citi Driver's Edge Platinum Select MC - First 12 months, 6% rebates at supermarket, gas station, and drug store. 3% thereafter. 1% on all other purchases. No annual fee. $1 rebates on every 100 miles driven- up to $1,000.
2. Citi PremierPass Elite Level MC - 15,000 bonus points made after first purchase. 1 point per every mile flown plus 2 points on every $1 spent. Complimentary companion ticket every time you buy 1 over $300. 2 points for every supermarket, drug store, gas station, communter transportation, and parking merchants purchase. 1 point for for all others. 1 point given for every mile someone else flies if you buy their ticket. $75 annual fee.
I like #1 because I'm in real estate and I drive a lot. And 6% back on purchases in the first year is pretty good. I've got a lot of big purchases this year (tv, DVD, oven, etc.) so this should be a real nice treat.
I like #2 because I'm going to travel to CA to see family and for weddings about 6 times this year. That's 2,000 miles each trip probably on different airlines. That's 12,000 miles and the TY conversion is $1 per 100 miles so in essence I'm at $120 (which covers the annual fee). That's not including the cost of each flight which will probably be $1,800 = 3,600 points. So together with the 15,000 bonus that already puts me over 30,000.
***Now that I realize it, I'll need an AMEX card for my tv purchase at Costco. I still want to stay in the Citi TY network so my options are:
Citi/AA: 15,000 bonus AA miles (I use AA), one mile for $1.
Citi Diamond Preferred: 6,000 TY bonus redeemable for a $50 GC. 5 pnts per $1 spent at grocery, gas, drug.
Citi Premier Pass: 5,000 TY bonus. 1 pnt per purchase.
Citi Platinum: 6,000 TY bonus points. 1 pnt per purchase.
If I'm only using it for Costco, I'm guessing that the Platinum and the Diamond Preferred are my best bet... they'll give me more value (miles) than the 2% cashback will. Any thoughts on that?
Answer
I did not even realize that you were wanting to do a balance transfer and get miles. You can do a balance transfer and get 0% apr for a limited time, but you will never get miles for a BT. If that ever happens I will rack up.
You do need to look at using AX direct for AX and the costco card or the SPG would be the best option. Transfer on SPG is up to 1.25 per $ but some programs are lower. Check out the costco card. You really do not need to have both accounts with citi.
Answer
1. Citi Driver's Edge Platinum Select MC - First 12 months, 6% rebates at supermarket, gas station, and drug store. 3% thereafter. 1% on all other purchases. No annual fee. $1 rebates on every 100 miles driven- up to $1,000.
...I like #1 because I'm in real estate and I drive a lot. And 6% back on purchases in the first year is pretty good. I've got a lot of big purchases this year (tv, DVD, oven, etc.) so this should be a real nice treat.
You earn 6% rebates on purchases made at supermarkets, drugstores and gas stations for 12 months. I do not forsee this applying to purchase of a television, video player, oven or similar household appliances.
You can earn $0.01 in Drive Rebates for each mile you drive on the vehicle you registered on your enrollment form. The vehicle must be a car, van, light truck, motorcycle or sports utility vehicle that is used primarily for personal, family or household purposes You may wish to consider whether a vehicle used for work qualifies. I any event this feature is capped at $500, and counts against the $1,000 annual rebate cap on the card.
Answer
You earn 6% rebates on purchases made at supermarkets, drugstores and gas stations for 12 months. I do not forsee this applying to purchase of a television, video player, oven or similar household appliances.
You can earn $0.01 in Drive Rebates for each mile you drive on the vehicle you registered on your enrollment form. The vehicle must be a car, van, light truck, motorcycle or sports utility vehicle that is used primarily for personal, family or household purposes You may wish to consider whether a vehicle used for work qualifies. I any event this feature is capped at $500, and counts against the $1,000 annual rebate cap on the card.
If the $1,000 annual rebate cap is a concern, you can get two Driver's Edge cards. I have two of them myself. (I'm only doing Drive Rewards on one of them though.)
Answer
A SPG account rep. told me this 2 days ago. Apparently Continental changed the exchange rules on Jan. 1st. She mentioned another airline that changed theirs too - I think it was United.
Bummer - all I fly is Continental.
Answer
Discussion from November of the change in SPG:CO transfer ratio is here...
http://flyertalk.com/forum/showthread.php?t=630156
Note that you can still convert American Express Membership Rewards points 1:1 to Continental.
The SPG:UA ratio has been 2:1 for a few years.