If you work for a Company where trust, self-awareness, judgement, decision making, and empowerment are valued (in other words you are not tied to a corporate card or a rigid T&E policy) you will be one step ahead. Just remember, you are responsible for your payments so if you risk getting reimbursed, you have no recourse. If you own your business, game on, however, my perspective is one of an employee’s using his personal card for business and personal expenses; I am not familiar yet with credit cards targeted for Business owners.
Points and miles are a currency
Minimal infrastructure aids the consumer in managing and budgeting of their rewards. Articles like these are steps forward. Other ideas come to mind, and some fragmented options are on the market but that’s for another time. Credit card issuers pay Twenty-Two Billion dollars in annual rewards. How many have you accumulated? And are you maximizing the redemption? You should always take both pieces of the equation into account when making decisions. Like any good financial plan, it’s advised you start with a goal.
You need to assess first; what are you trying to achieve? What’s most important to you? Is it ‘wealth’ accumulation and maximizing reward redemption for that once in a lifetime roundtrip experience on business/first class across the world? Or the top-notch hotel that’s on your bucket list? If not wealth accumulation, is it pure convenience and frequent comfort you seek? In other words, do you want to get through security as quick as possible, enjoy the lounge, board first and get upgraded to first class on your regional flight? Is it possible to have it all? The next thing you need to assess after your goals have been established is loyalty. Do you have a common business route that you fly? What airline have you chosen, or do you frequent most? What hotel brand, if any have you chosen to align yourself to or car rental agency for that matter? More about the synergy between these reward programs another time but these are important factors in deciding the cards in your wallet. The third thing to consider are your daily spending habits. Where do you spend your money daily? Is your everyday spend around gas, supermarkets or on-line shopping? Do you have children that come along with dues, fees, clothing, camp and tuition? Don’t underestimate your spending habits when it comes to credit card selection.
If you take anything away from this, let it be that you put your debit card away. It’s like throwing away money. Use a credit card to get free stuff (but don’t carry debt). So, what’s top of wallet for you? Is there just one card that can fit the bill? I’ll recount my experiences and the cards I hold considering my goals, travel patterns and personal spending habits. I have not cracked the code. There are many options available to you. Also, re-set and reflect every year. Review what worked well and maybe not so much the prior year. Did your needs change? Is your spending behavior going to change the coming year or will your travel behaviors look different? My opinions do not consider credit score and the impact to your score based on your application volume. I will remind you, however, of Chase’s 5/24 policy. If you apply for 5 cards (regardless of the bank holder) in a 24-month period and you apply for any Chase card, you will be denied regardless of your credit score.
In 2016, I traveled too many airlines switching between Virgin America (LGA to Love Field), United Airlines, JetBlue and Delta. I flew too much to be stuck boarding so far back in line. I had one incident in Denver on my return flight with a bad boarding zone that it was enough for me to get the Mileage Plus credit card. This was for pure convenience sake with a nominal $95 fee for guaranteed zone 2 every time I flew. It was well worth it. I earned silver status at the end of the year and switched to Delta through a status match anyway in 2018; more on that another time. I subsequently cancelled the card. Now, I have 5 cards, but I don’t treat them all equally. I just got the fifth card that may replace another; I’m still experimenting.
Chase Sapphire Reserve
My first card to lead my wallet refresh was the Chase Sapphire Reserve. I took advantage of the 100,000 point offer worth upwards of $2,000. This card comes with it a $450 annual fee. You receive an instant $300 credit, however, upon your first travel charges that meet that amount, so you are left with $150 out of pocket. For almost a year, I used this card exclusively at 3X for flights, hotels, ground transportation and dining. Now, for all meals and ground transportation I use this card exclusively. It comes with some convenience and protection benefits too. I use it when renting a car not just for point accumulation, but it serves as primary insurance (property only). I have also taken advantage of the global Priority Pass lounge access for me and a companion that comes as a benefit with this card. I chose this card, at the time, over the American Express Platinum card but stayed close to that card’s fees and benefits. I had the Gold AMEX in my wallet for a long time and have always eyed the Platinum card. As for redemption on the Reserve card, it is easy to redeem points at a minimum of 1.5X via their travel portal and with a little work you can average 2 times.
The Platinum Delta Card
I chose another Platinum card in the meantime for a smaller fee of $195 per year. This time it was Delta. I did not choose it for it’s earning power or redemption value. I chose it for the MQM benefit’s; 10,000 for signing up and 10,000 after reaching $25,000 in spend. I was going for gold. As the year progressed, and my MQM’s accumulated to Platinum status, I was fortunate that this card also qualified me for the MQD requirements, so I now get the benefit of Platinum in 2019. Based on my expected flight travel and similar expenses ahead, I have decided to keep this card in my wallet in hopes I can spend enough and fly enough to maintain platinum. Frankly, I’m still not sure if this is the best move. I am still evaluating Gold status compared to Platinum; not as it pertains to the value in dollars but rather my travel experience over the coming year. For now, I will use the Delta Platinum AMEX for all things that are not travel (flights, hotels, transportation). You will also receive a companion ticket at your annual cards’ renewal date (this is for domestic use only) but can easily offset the annual cost of the card.
American Express Platinum
As 2017 progressed, I pulled the trigger on the American Express Platinum and upgraded my Gold card.
This was soon after the fee increase to $550 per year. Wow, that’s a lot of money to carry around some metal in your wallet. I received 50,000 bonus points (I missed the 100,000 offer which just passed by again early this year). I worked hard to maximize the advantage of the card though and learned some things along the way. I utilized the $200 credit on Uber. I took some advantage of the $200 incidental credit. I rarely check bags and with status on Delta, I wouldn’t pay anyway. I tried purchasing a $100 gift card but that didn’t trigger the credit. I may try a $50 one this year, as I’ve read smaller dominations may work. I have confirmed, however, that your in-flight food purchases will be credited and taxes and fees for your mileage awards will too. My experience is at least fees of about $50 or less have been credited. I also heard but cannot confirm that the $29 for a companion to enter a lounge will also be credited. Which brings me to convenience. This Platinum card now gets me into all the Delta lounges (just me, not a companion) for free and into the Centurion Lounges (with a companion). So, comfort and convenience can sometimes come a long with point accumulation. I now use this card only for all my airfare purchases at 5X. For the non-loyalist or those still striving for hotel status this card will automatically get you gold in both Hilton and Marriott’s reward programs. It is easy to redeem points on this card a minimum of 1.0X. It will take some work to average 2 times and this must be done through point transfer to airlines.
What about supermarkets and gas? Well, most of the time I pay for gas with cash except for the occasional station where cash and credit are the same price but those are typically more than the cash prices at the competitor stations. Years ago, I had applied for a Bank of America card that has been dormant for a long time. With its cash back selection option (I typically select 3% for gas) and it’s 2% back on supermarket purchases, I used the card accordingly in 2018. With a zero-dollar annual fee, I may put it aside this year in favor of the Delta card to give myself the best chance of meeting the $25,000 minimum to satisfy the MQD requirement for Platinum. Besides, for the next three months I need to use the fifth card I’m about to describe to leverage that bonus offer and don’t want to comprise my 3X for dining and 5X for airfare.
SPG American Express Card
This brings me to the SPG American Express card; you’re welcome American Express. I’m doubling down on you at least for 2019. This card has just sunset with the transition of SPG to Marriott Bonvoy. I applied for it so that I could receive the 75,000 bonus points. The nominal $95 fee is waived in year one and each anniversary you receive a complimentary one-night stay (up to 35,000 reward points). It didn’t seem like I was taking much risk to add this to my inventory. I will now receive 6X on my spend at Marriott properties in addition to the 13X I already receive with Platinum status.
Capital One Venture Card
There are dozens of cards out there. Another one that comes to mind if you are not a hotel loyalist is the Capital One Venture card. It’s currently offering a 75,000 sign up bonus, has announced new partner airlines and offers 10X using hotels.com.
Remember, set your goals, be mindful of your travel partners, and review your spending habits when selecting the best cards for you. At the very least, save your debit card for your ATM needs and add a no-fee/nominal fee card to your wallet.
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