Credit cards - what’s best?

[Yipper]

So I’ve been a Bank of America customer forever… I have just enough in a ML brokerage to get their Platinum Honors benefits for me and all three adult kids (as I’m on their accounts since they were set up in high school).

I have the BofA “Cash Rewards” card for everyday purchases and “Travel Rewards” cards for um… travel.

Recently one of the daughters shared the story of their status obsessed millennial roommate and her Chase Preferred metal card and how amazing it is. I looked it up and $550 annual fee, $300 annual travel credit etc.

Am I missing something here or are these elite cards a scam? Is a card made of metal really better in some way?

 

[Chuckanut]

FWIW, I have a Chase Sapphire Preferrd card, and I am not sure I will keep it. I like it for the primary car rental insurance and the 100,000 points I got. I am using up those points as I travel this year. But, overall, I don't think it will be worth the fee in the long run (about $100 a year).

More and more I see that cash is king. Give my my Costco Visa 3% on travel and 4% on gasoline, my Fidelity 2% on everything else and an occasional 5% bonus from my Discover and Flex cards. Then I don't have to worry about portals, moving points about, etc. I especially don't like being tied into their portal. It all gets rather confusing trying to balance this benefit against that benefit when they are all so different.

Cash is easy to measure.

I will keep one fee card for certain. It is a hotel card that gives me a free room night every year. The card is $50 per year, gives me some upgrade status, and the rooms are normally over $100 a night. They no longer offer the card. I am grandfathered.

Another card is an airline card that includes free luggage check. It's abut $100 a year and recently saved me $120 in luggage checking fees. But, if my plans work out, I may not have to check luggage very often, so who cares about free luggage check?

 

[Dtail]

I have 3 cash rewards and 1 Premium rewards at the 100k+ level.
Didn't think the Chase card was worth it to me.

 

[athena53]

It all depends on your travel and spending patterns.

When I was traveling on business I paid for Hilton and AA-branded credit cards and the points added up when combined with points from actual travel and DH and I made very good use of them.

I've looked at the generic "reward point" cards where the real benefit is in making the booking through their travel portal but I want more flexibility and I'm never sure you get a decent deal. It also adds a level of complexity if things go wrong. I prefer to book directly with hotels and airlines.

The $400+ membership cards carry some benefits (signing bonus, credit for checked bag fees or Global Entry) that offset the cost or many but I just can't motivate myself to fork over that much.

I still do travel a lot on my own dime and have ended up with a straight 2% cash back Fidelity Visa and a Costco Visa that I use only for travel and restaurants (3% back) and gas (4%). With all the finagling airlines and hotels are doing with their loyalty programs, mostly devaluing their points, I like cold cash.

 

[Dtail]

It all depends on your travel and spending patterns.

When I was traveling on business I paid for Hilton and AA-branded credit cards and the points added up when combined with points from actual travel and DH and I made very good use of them.

I've looked at the generic "reward point" cards where the real benefit is in making the booking through their travel portal but I want more flexibility and I'm never sure you get a decent deal. It also adds a level of complexity if things go wrong. I prefer to book directly with hotels and airlines.

The $400+ membership cards carry some benefits (signing bonus, credit for checked bag fees or Global Entry) that offset the cost or many but I just can't motivate myself to fork over that much.

I still do travel a lot on my own dime and have ended up with a straight 2% cash back Fidelity Visa and a Costco Visa that I use only for travel and restaurants (3% back) and gas (4%). With all the finagling airlines and hotels are doing with their loyalty programs, mostly devaluing their points, I like cold cash.

Bolded by me - I use to use the BOA travel card for travel and booked through their travel site, but even with the rewards the overal net booking was more expensive this way.
Plus agree on the point of direct booking if something goes wrong.

 

[Yipper]

Bolded by me - I use to use the BOA travel card for travel and booked through their travel site, but even with the rewards the overal net booking was more expensive this way.

Plus agree on the point of direct booking if something goes wrong.

The BofA Travel Rewards I have doesn’t require booking through them… anything they tag as travel is accepted. I like booking direct or at least shopping around as well.

 

[ncbill]

IIRC, Bank of America has the best overall no-fee cash back card...something like 2.66% but that requires depositing a good chunk of change into their brokerage ($100k?) & linking the two...I've only read about it, has anyone here done that?

I'd likely pay the annual fee for a miles reward card if I flew more.

 

[Yipper]

With the BofA Cash Rewards card I’m getting 3% back in my category of choice (I chose online shopping). It also gives me 2% back on grocery stores and wholesale clubs and 1% back on everything else. No annual fee.

For the Travel Rewards card I’m getting 1.5 points per dollar spent for all travel and dining purchases.

Both of these card rewards are boosted by 75% since I’m Platinum Honors.

 

[Dtail]

The BofA Travel Rewards I have doesn’t require booking through them… anything they tag as travel is accepted. I like booking direct or at least shopping around as well.

Yes I know. Just was giving that example as that one must look at the net cost.

 

[Dtail]

IIRC, Bank of America has the best overall no-fee cash back card...something like 2.66% but that requires depositing a good chunk of change into their brokerage ($100k?) & linking the two...I've only read about it, has anyone here done that?

I'd likely pay the annual fee for a miles reward card if I flew more.

Yes that is what @Yipper and I have and do.
With the 100k Platinum honors program (100k), the cash rewards has a reward of 5.25% on selected categories up to 2,500 per quarter.
Groceries and food warehouses are 3.5% and included in the above limits. No yearly fees.

Your 2.66% probably refers to the Premium card which is 2.625% at the Platinum level and is unlimited, but has a $95 yearly fee. However there is a travel baggage fee allowance of $100 which offsets this fee.

 

[mebden]

wellsfargo

I have a Wells Fargo CC pays me 1.50% on anything and no annual fee also $200 bucks when you 1st sign up but now, they have an Autograph CC that sounds even better, and I'll never pay an annual fee to use any company's card they can pay me thats the way I like it LOL

 

[Jerry1]

The Apple Card is metal also. At least that’s a cash back card (not one of the best).

 

[Alex The Great]

I regularly use the following credit cards:
1. Citi custom cash for 5% cash back on groceries
2. Chase Freedom and Discover It for 5% cash back rotating category, such as Amazon for example
3. Wells Fargo AmEx Propel for 3% cash back on travel
4. Alliant Visa Signature for 2.5% cash back on everything else.

 

[Yipper]

I regularly use the following credit cards:

1. Citi custom cash for 5% cash back on groceries

2. Chase Freedom and Discover It for 5% cash back rotating category, such as Amazon for example

3. Wells Fargo AmEx Propel for 3% cash back on travel

4. Alliant Visa Signature for 2.5% cash back on everything else.

Wow - sounds like you’ve figured it out!

 

[Helen]

Does anyone use the Amazon card? I'm eyeballing it for the $200 bonus and I should probably get another credit card. I would use it as a backup credit card.

I primarily use the Costco card since it doesn't have an international transaction fee.

 

[PaunchyPirate]

I use:

PNC Visa for 4% off gas and 3% off restaurants
Citi DoubleCash for 2% off everything else
CapitalOne Venture One - it’s free so I keep it. I only use it enough to keep it alive OR for international travel (no international fees)

I also periodically sign up for a card long enough to get a sign up bonus. I currently have the Chase Sapphire Preferred that got me 100,000 points to use toward travel. I decided to pay the $95 to keep it one more year, but I doubt I’ll keep it longer. I also do not find value in using their travel portal to make bookings.

 

[W2R]

Does anyone use the Amazon card? I'm eyeballing it for the $200 bonus and I should probably get another credit card. I would use it as a backup credit card.

I primarily use the Costco card since it doesn't have an international transaction fee.

After going through the financial/credit Armageddon known as divorce, back in the 1990's, I have acquired an innate dislike of credit cards. So, for years I had none, and even now I only have one: The Amazon Prime Rewards Visa, which I got through Amazon Prime, and which is administered by Chase Bank.

It gives me 5% for Amazon purchases and Whole Foods, 2% for restaurants, gas stations, and drugstores, and I think 1% for everything else.

I like it because it feeds my Amazon addiction. I use the rewards directly for my Amazon purchases.

 

[SecondAttempt]

Recently one of the daughters shared the story of their status obsessed millennial roommate and her Chase Preferred metal card and how amazing it is. I looked it up and $550 annual fee, $300 annual travel credit etc.

Am I missing something here or are these elite cards a scam? Is a card made of metal really better in some way?

I don't think you are missing anything but whether they are a scam depends on the individual. They are a scam in the sense that the issuers know most people will not use all the perks. But if you understand the card's features and benefits and are able to take advantage of them then some of these premium cards can be a good deal.

I keep track of the benefits of value to me make sure I am getting value.

For example, I have an AMEX platinum card that costs $550 per year (although that is going up.) They give a $200 uber credit, a $200 airline fee credit, Priority pass lounge membership plus access to their own airport lounges, plus pay for Global Entry $100 every 4 years, pay for Clear $169 per year (they will pay $189 but I get a discount so it only ends up being $169). So if I make maximal use of those credits they add up to $594. So I am ahead and get everything else for free including the lounge access.

Last year, even with Covid, I got $180 in uber credits. I can always get the full $200 in airline credits because I upgrade to economy plus and they detect that and credit it.

Now, would I pay for Clear if I had to pay out of pocket? I don't know, I signed up this year and so far the experience has been excellent and I would. I have asked myself if I would pay for lounge membership. The answer is yes but not at the rates they charge. Priority pass is $254 per year. I would probably pay $100 based on my usage.

Can I live without lounges, global entry, clear, etc.? Of course I can but they make traveling much easier and stress free.

So, at least to me, that premium card is worth it, at least for now. There are rumors of some pending changes that would definitely make me reconsider.

One thing that does annoy me about AMEX is that their benefits seem targeted to people who live in big cities. I wish they would have a more flexible package of benefits, maybe even a cafeteria plan.

I couldn't care less if my card is metal!

 

[Bamaman]

We've been using a Capital One travel card for many years. Get a trip to Europe yearly for one person at a minimum on rebates. The service level of Capital One is simply fantastic.

ClarkHoward.com covers this subject well.

 

[wrigley]

Fidelity Rewards Visa. No annual fee. 2% cash back on all purchases. No max limits, no restrictions.

Mike

 

[Dtail]

I regularly use the following credit cards:
1. Citi custom cash for 5% cash back on groceries
2. Chase Freedom and Discover It for 5% cash back rotating category, such as Amazon for example
3. Wells Fargo AmEx Propel for 3% cash back on travel
4. Alliant Visa Signature for 2.5% cash back on everything else.

What are the fees on these cards?

 

[FLSUnFIRE]

I have a Wells Fargo 2% I use as the default. Chase Freedom (old version) I'll take advantage of the 5% categories on, and a BOA that lets me choose a 3% category (usually online but if traveling will change to travel for rental car, purchases at airports, parking, etc). I have another half-dozen cards, most with 1.5% I keep active using once a year or so but more and more cards offer "deals" with statement credits that are far more valuable than cash back (some up to 20% but most in the 5-10%). USAA offers occasional statement credits (seems about 1-2 times a year) for charging $x within a certain period of time. Amex had some good statement credits last year but not many this year. It's fun playing the game but not applying for more cards (and not sure what to put for income nowadays if I did). So far this year, statement credits account for 27% of my total rewards from using rewards cards... nice boost over the 2-5% regular rewards. Check your cards website and/or app as you have to opt into those deals!

 

[tulak]

The Chase Sapphire Preferred is $95/year annual fee. It's the Sapphire Reserve that is $550/year and has the $300/year annual travel credit.

I travel a lot and have the Reserve card. I debate if I should keep it every year, but so far it's been a good value for me. The main reasons:

1. It earns at a higher rate (3%). You can earn more if you book through the Chase portal.
2. It has a higher redemption rate (50% more for travel booked through their portal). I mostly book plane tickets and sometimes expensive city hotel rooms (aka London). You have to price this out carefully to know if it's a good deal or not.
3. Primary car rental insurance. This saved me around $1k last year (two flat tires and a broken window). The reimbursement process was easy.
4. Priority Pass membership. Some airport clubs aren't great, but I get in for free and it saves some money that I might otherwise spend at the airport and I can bring in multiple people for free.
5. DoorDash. I don't use this as much now, but it was a good deal during the pandemic. This probably saved me $100/year.

I pay $250/year for this card after the $300/year annual credit. If I add up all the benefits, then I'm skeptical I pay much, if any, yearly fee for this card.

I don't care that it has metal. I rarely use the physical card and instead use Apple Pay on my watch.

I'm not a big fan of the Sapphire Preferred card, it's cheaper, but I don' think it gives as much value.

My default card is the Fidelity 2% and if it's at Amazon/Whole Foods, then the Amazon card for a 5% discount.

I'm not that impressed with the Costco card, but I keep it around for backup and on the rare occasional I buy gas at Costco. Otherwise I use the Fidelity card at Costco.

I have a couple of hotel credit cards. They give me a free night every year plus status, so no cost to me.

 

[tulak]

I use the rewards directly for my Amazon purchases.

If you use rewards for purchases, then you don't earn points on that purchase.

It's better to use the rewards to pay down the credit card balance. This is easy to do on the Chase website. I make it a habit to do this every month or so. Just select 'Earn/Use' and then 'Cash Back'. They give you an option to 'redeem for a statement credit.' Select that and you're done.

I just did it for $12.38. If I used this amount towards a purchase, then I would have missed out on an extra 62 cents.

 

[athena53]

I'm not that impressed with the Costco card, but I keep it around for backup and on the rare occasional I buy gas at Costco. Otherwise I use the Fidelity card at Costco.

I also use Fidelity at Costco- the rebate % is the same on Costco purchases but Costco gives you cash back only once a year. I like that the Costco card has no transaction fees, though.