Spoiler Yes, dassit. I spend a lot on groceries, drive a truck and don't travel much. That's why I opted for this originally, I think.
It depends on your credit score and average age of credit, other cards, etc. I apply for and cancel about 5-8 cards a year, and my score has trended slightly upwards. Card applications and cancellations cause a short term ding, but the lower usage rate can raise your credit also and has a longer term impact. It's an absurd system that doesn't necessarily work in a logical way. I collect about 300-500k miles a year through the churning, but you're certainly right - I should have made clear that I would not universally recommend that strategy. It depends on your individual circumstances, and you definitely shouldn't do it, for example, if you have a house or car purchase coming up or things like that. I'm just saying that if you are aiming to maximize the value of gaining miles, that's the way to do it. It's more effective even than waiving annual fees or getting small loyalty rewards because the big bonuses are where the average consumer gets the most value. After the initial bonus, airline miles don't necessarily provide the best bank for the buck, and whether they even provide any net value depends on how much you're spending on it vs any annual fees.
In the past, I remember a point of contention being that AmEx and Discover weren't accepted at many places to shop in, so OP might want to look into that. Not sure if that's still the case, though. I know CostCo won't take anything but AmEx, and Sam's Club won't take anything but Mastercard.
Thats a great point. Discover is taken widely everywhere but AmEx is still refused at some smaller local stores due to their high fees charged towards the businesses. All major retailers take AmEx, if thats all op is shopping in though.
You can now use all credit cards at AMEX. I believe that contract Costco has with them soured and it will expire soon. Google it for more details.
Discover cards are easy to use. I think I've only been denied at one restaurant in 2 years of owning it. VISA is accepted everywhere. Like others said, AmEx isn't popular with smaller businesses.
For simplicity, I'll estimate $6k groceries; $3k gas; $3k other. Of the options mentioned here, you've got: Airline Card - 50k miles bonus + 12k miles from spending. If you use relatively efficiently ($0.02/mile), that's about $1240 worth of airline tickets ($1000 bonus; $240/yr). Annual fee of $75-$100 after the first year. Amex Cash: $100 bonus; $270 cash back per year, No annual fee Amex Cash Preferred: $150 bonus; $480 cash back per year; $75 annual fee So if you do wish to travel, the airline card can get you the best value in year one. But if you're not really into travel, it might take time before you see that value and airlines will slowly devalue the points. Longer term, if you don't want to be changing cards every year, Amex Cash Preferred gets you the most value - if my estimates of your categories are accurate. If not, the regular Cash with no fee might work out better. I would think those would be your simplest and most straightforward options.
PM your email address and I'll refer you for the card. That way you'll get an even bigger sign-up bonus (and I'll get a referral bonus). I have about the same amount of Starwood points as your dad, and they're worth A LOT to me. Free nights start at just 3,000 points per night.
the best card no frills CC for gas and groceries is the sallie mae mastercard. https://www.salliemae.com/credit-cards/sallie-mae-card/ Here’s how you earn cash back: 5% cash back on the first $250 you spend per month on eligible gas and grocery purchases each and the first $750 you spend per month on eligible book purchases. 1% cash back on every other purchase you make. Earn 2500 bonus points which may be redeemed for a $25 cash back statement credit, just for using your card within 90 days of account opening. No annual fee. the eligible book purchases INCLUDES amazon.
what you said about "bonuses, but after that, they work out..." is not entirely true. at least for chase. i have the chase freedom and chase sapphire preferred. freedom has 5% on rotating items every 3 months, and CSP has 2% on travel and eating out. while chase also gives a 25% bonus when you transfer the points to an airline. if you break that down it's over 3% or so back on travel. and also i have a friend that is going to move back to Saipan in a year or so and that is a $1500-2000 round trip economy flight and it's still only 70,000 miles on united.
Sorry - I was referring to the airline-specific cards (American Airlines Card, United Card, etc). CSP and the others that get you more than 1 "mile/point/etc" per dollar are definitely more valuable in the long run, though you get smaller up-front bonuses.
I use 4 main cards, depending on where I go.... Chase Freedom & Discover It, depending on the quarterly 5% categories. Citi Forward, 5% back at restaurants and "bookstores" (this includes Amazon). Citi DoubleCash, 2% back everywhere.
I have a Discover it, which I believe has rotating rewards. I really haven't used it much over the last year, but Freebirds is only place I've attempted to use it and was told it wasn't accepted.
I travel a decent amount, so I use the Chase United Club card. 1.5 miles for every $1 spent and United Club access. It is a bit pricey on the annual fee, though...
Done. Yeah, we just stayed at a nice place in Dallas (oxymoron, I know) for 3,000 points. Well, really 2,500 when they give you 500 right back. Thanks man!
Same. Go for the AMEX Blue Cash Preferred. 3 percent on gas, 3 percent on groceries, and 1 percent on everything else. And while we're on the financial subject. You guys should check out Schwab Bank. Just cancelled my chase account for it. No foreign transaction fees, and free ATM's (worldwide, yes you can even use it at the strip club or vegas and they'll reimburse that expensive ass fee)
One thing, OP, is don't sign up for a card unless they're offering the max sign-up bonus (research it to find old offers). They'll offer it at least once a year. You're better off waiting until they offer the bonus rather than signing up for it now and accumulating the points. By the time they offer the bonus again, you would not be close to the sign-up offer.
