Travel Credit Cards

[FIYes]

The travel insurance benefits were a huge in factor in why I kept the Sapphire Preferred Card even with the $95 annual fee. Really the only reason I’m looking at a downgrade is the chance to reapply and get a new sign up bonus. I haven’t had to use those benefits, so I can’t comment on how easy/hard they are to use.

I do carry an annual medical travel insurance plan with Allianz. Medical is my biggest concern with travel. I can afford to lose the cost of a trip, but I can’t afford a huge medical expense.

 

[OldShooter]

I tell this to the students in my Adult Ed investment class:

​

Rule of Thumb: The more complicated an investment product is, the more likely it is that it was designed to make money for the seller, not to make money for you.​

I think it applies to these complex credit card offerings, too. Basically they are offering a game that I have no interest in playing.

 

[teej1985]

The new Chase Sapphire Reserve is now officially available and you can find the details here:

Chase Sapphire Reserve: 100,000 Point + $500 Sign Up Bonus, New $795 Annual Fee & More - Doctor Of Credit

-795 - annual fee for new Chase Sapphire Reserve card
-100 - 2% fee to pay $5000 estimated quarterly tax payment with new card
+1050 - cash value of the 100,000 sign up bonus plus the 5,000 earned paying estimated taxes
+500 - cash value of the $500 sign up bonus travel credit
+300 - cash value of the $300 annual travel credit that comes with the card
+120 - cash value of Global Entry credit

That's a net $1,075 for spending 10 minutes to sign up for the new card, 10 minutes to pay your estimated taxes, 10 minutes to pay $500 for travel, 10 minutes to pay $300 for travel, and 20 minutes to apply for Global Entry.

So for less than an hour's worth of effort you get a great travel card for a year and more than a thousand bucks in actual cash equivalent to spend on travel. Tax free.

Doesn't seem like a lot of hoops to me.

You would have to spend (1075/.02) $53,750 on a 2% cash back card to earn $1,075 cash back.

FYI, I would never redeem 100,000 Chase points for a penny each. I'd transfer to an airline and book a business class ticket across an ocean in a lie flat seat and have enough points left over for a domestic first class ticket.

Obviously it's worth opening for the SUB and if you can easily use the travel (and other) credits, but not necessarily worth keeping the card after the first year, you would have to do some analysis to determine how much value value you derive from the card considering the steep annual fee.

but for me, paying $95 fee for $750 on the CSP seems like a better deal than paying $795 for $1000 on the CSR plus $800 of travel credits, the $500 of which is harder to use than the $300). It's mathematically better of course to turn $795 into $1800 than to turn $95 into $750.

 

[Sunset]

The Chase Sapphire Preferred card does also have a yearly $50 hotel credit by booking a hotel through them (website). A small catch with it for the hotel I did it on last year, was the hotel didn't give me points for a promotion they had running. The hotel was too smart to allow me to double dip.

The hotel only cost $100 per night so I thought the Chase deal was pretty good in any event.

 

[Alex The Great]

FYI The Pathfinder gives you a $100 air incidental credit every year. I've used it to buy an American Airlines gift card. It literally is the only transaction that I do on the card every year. I'm surprised they haven't cancelled it. Mine is a grandfathered no annual fee version from the old PenFed Premium Amex.

Thanks, this is a great info. I believe they did not cancel your card because you do at least one transaction per year. I renew GE once in every five year, and I get a notice every other year to make a transaction in order to keep the card. With your idea, the problem is solved! And yes I do have this card without annual fee as well.

 

[teej1985]

The Chase Sapphire Preferred card does also have a yearly $50 hotel credit by booking a hotel through them (website). A small catch with it for the hotel I did it on last year, was the hotel didn't give me points for a promotion they had running. The hotel was too smart to allow me to double dip.

The hotel only cost $100 per night so I thought the Chase deal was pretty good in any event.

Nice part is you can dummy book a hotel that is further out, cancel it for refund, and keep the credit.

 

[Chuckanut]

Apparently, the Chase Sapphire Preferred is going to also reduce the value of their points from 1.25 to an even 1 cent. There is a limited plan to allow a 2 cents redemption but only at special places. Not so good.

 

[OldConch]

Apparently, the Chase Sapphire Preferred is going to also reduce the value of their points from 1.25 to an even 1 cent. There is a limited plan to allow a 2 cents redemption but only at special places. Not so good.

That is for bookings through their portal. Transferring to Hyatt or airline partners will almost always get you better than 2 cents per point. Transfer bonuses can also add value. There's currently a 20% bonus on miles transferred to Canada Aeroplan, Iberia, and Aer Lingus, and 25% to Virgin Atlantic.

I've had the CSR for about 6 years I think and I've never booked through Chase. I'm actually more likely to use the portal now if I can get 2 cents per point instead of 1.25 or 1.5 for the Sapphire Reserve.

 

[foxcreek9]

Nice part is you can dummy book a hotel that is further out, cancel it for refund, and keep the credit.

I try not to do this every year, but yes it works. No need to make Chase mad, they can be very vindictive.

 

[Koolau]

I try not to do this every year, but yes it works. No need to make Chase mad, they can be very vindictive.

Totally out of curiosity, what indicators have you seen that they can be very vindictive? I'm trying to picture how that would w*rk.

 

[Koolau]

Apparently, the Chase Sapphire Preferred is going to also reduce the value of their points from 1.25 to an even 1 cent. There is a limited plan to allow a 2 cents redemption but only at special places. Not so good.

This is why I tend to avoid cards which offer "points" since they can be changed at the whim of the card company.

 

[OldConch]

Totally out of curiosity, what indicators have you seen that they can be very vindictive? I'm trying to picture how that would w*rk.

Banks can and do shut down accounts for fraud and or activity outside their terms of service.

 

[FIYes]

Well, my plan to downgrade my Sapphire Preferred card and apply for a new preferred card to get a new sign up benefit will no longer work. The rules have changed.

 

[Montecfo]

I will likely cancel my Chase Sapphire Reserve. $795 is too much. But I need to pencil it out to confirm it’s not worth it.

The biggest issue I’ll have is figuring out an alternative for primary car rental insurance.

I have a large claim in progress right now (which I’m not too happy about) and have noticed that they changed underwriters since the last time I filed a claim. The new underwriter isn’t as easy to use as the old, requiring unnecessary documentation (police report, where this no police report, copy of insurance deductibles, where it shouldn’t matter, etc). I had to attach signed letters for not including these documents, otherwise the claim wouldn’t get reviewed by underwriting. A much bigger hassle than it was in the past and I’ll see in a couple of weeks how it turns out.

Don't most folks rely on their primary auto insurance domestically?

The credit card auto insurance I found virtually unusable as required documents were unobtainable.

 

[Pointby2]

I currently have my DW as an authorized user on the CSR card. The new fee is going to $195. She never actually uses the card since I book all travel and dining. I won't lose anything dropping her as a user, correct? I can bring up to two guests with me at Priority Pass lounges and she can be my guest at Chase Lounges. Correct? Am I missing anything?

 

[foxcreek9]

Totally out of curiosity, what indicators have you seen that they can be very vindictive? I'm trying to picture how that would w*rk.

They have been known to close all accounts and take your points (although some states have protections, such as NY where they have to give you a few days to transfer). Reddit has multiple stories if you go look.

 

[stepford]

DW and I are heading off to Europe this fall for a few months and will likely rack up $15K or so in travel expenses so I'm thinking of picking up another travel card. I currently have a Chase Freedom Flex (for the 5% categories) and a Fidelity VISA for everything else.

I had a Sapphire Reserve several years ago, but didn't see much value in it after the generous opening bonus. I just received the email offer for the 100K points + $500 offer on a new CSR card. I won't really get much out of the 'lifestyle' benefits of the card. The new opening bonus is pretty compelling, but other than that it seems like one of the $95 annual fee travel cards (CSP or Autograph Journey) would be a better fit for me.

 

[Koolau]

Banks can and do shut down accounts for fraud and or activity outside their terms of service.

Yeah, I guess I have heard of some CCs "punishing" certain types of purchases (purchasers), so I guess it IS possible. BUT for every "punishment" the CC company actually loses as well. IOW cutting off their nose to spite their face.

 

[Koolau]

They have been known to close all accounts and take your points (although some states have protections, such as NY where they have to give you a few days to transfer). Reddit has multiple stories if you go look.

But as stated above, that hurts them too.

 

[teej1985]

Well, my plan to downgrade my Sapphire Preferred card and apply for a new preferred card to get a new sign up benefit will no longer work. The rules have changed.

We don't actually know the new rules, only that they are more vague.

 

[planuntilthefisthits]

I currently have my DW as an authorized user on the CSR card. The new fee is going to $195. She never actually uses the card since I book all travel and dining. I won't lose anything dropping her as a user, correct? I can bring up to two guests with me at Priority Pass lounges and she can be my guest at Chase Lounges. Correct? Am I missing anything?

The only thing you might use is any points accumulated by spend she might make on the card when you are not there to whip out your card.

 

[Chuckanut]

I closed my Chase Sapphire Prefered card about a year ago. I was considering applying for a new one, but now I will wait and see what happens to that program. If they make the program more complicated like they seem to have done with the Reserve card, I will probably not get another card.

 

[Sunset]

I currently have my DW as an authorized user on the CSR card. The new fee is going to $195. She never actually uses the card since I book all travel and dining. I won't lose anything dropping her as a user, correct? I can bring up to two guests with me at Priority Pass lounges and she can be my guest at Chase Lounges. Correct? Am I missing anything?

We never are authorized users on each other's card.
As that prevents both of us from applying for the same brand and each getting the signup bonus.

 

[OldConch]

We never are authorized users on each other's card.
As that prevents both of us from applying for the same brand and each getting the signup bonus.

This is the way.

 

[audreyh1]

We never are authorized users on each other's card.
As that prevents both of us from applying for the same brand and each getting the signup bonus.

Well that’s certainly an option, but it also means double the statements and accounts. We don’t play the sign up bonus anymore so we’re happier dealing with authorized users. My favorite cards are the ones that give the authorized user a different card number because if one card is compromised it doesn’t affect the other card, but both are on the same statement.