If you are smart, spend the smartness by helping others who are less smart. There is more peace if we spend less and learn to live a happy life with family and friends. I learnt my lesson that these type of teasers only wastes our productive life.
If you're against this card you are being insensible!I wish to join this convesration because I too own such a reward card. I recently got the 100,000 points.
I pay all of my debt with automatic monthly payments. I know exactly how much in discretionary money I have. After fixed costs I only spend that much. I also save a certain amount primarily for expenses including travel and other purchases.
The 4k needed to spend is perfectly fine if you were already planning on it. We are going on a trip and also plan to spend money on home furniture which we had saved up for. These are expenses we had planned and are now utilizing to our benefit to take advantage of this card.
Knock on wood but I have no intention of running a debt with our card. I see no reason why anyone else should do this when they have autopayments and have the ability to check how much money the really have in the bank. This negativity against debt and spending is simply those wishing to claim austerity as a moral high ground when in reality its an extreme position.
I pay all of my debt with automatic monthly payments. I know exactly how much in discretionary money I have. After fixed costs I only spend that much. I also save a certain amount primarily for expenses including travel and other purchases.
The 4k needed to spend is perfectly fine if you were already planning on it. We are going on a trip and also plan to spend money on home furniture which we had saved up for. These are expenses we had planned and are now utilizing to our benefit to take advantage of this card.
Knock on wood but I have no intention of running a debt with our card. I see no reason why anyone else should do this when they have autopayments and have the ability to check how much money the really have in the bank. This negativity against debt and spending is simply those wishing to claim austerity as a moral high ground when in reality its an extreme position.
2
All I keep seeing are credit cards with perks galore. When I check out the actual cards, their records on disputes and problems with purchases are dismal. It also is odd that I don't see journalist tackling this as a concern when selecting a credit card. Caveat emptor!
Checked online on January 10. Chases offer is now only 50,000 points. They pulled it.
Yes, it ended as of January 12.
1
I got the Chase Sapphire about a month or two ago. I recently did a blog post on my website how I already made over $1,000 on the card and I still have $498 in free travel benefits left.
Read it here: http://travelingprofessor.com/TravelBlog.aspx
Read it here: http://travelingprofessor.com/TravelBlog.aspx
1
Oh brother. Is that the best you have to guide us? Yikes, it's not even worth reading! A $450 yearly fee that you get back $300? So what???? Better to stick with SW VISA, $69 fee per year and if you spend even 2k a month you get a free flight with the points. Disappointing advice at best.
I'm respectful of those who are savvy cc shoppers. Truly inspiring. But for the vast numbers of Americans these deals are about pulling more into debt. The American public is awash in cc debt and should avoid getting more cc.
Does anyone actually think that these banks put your interests ahead of their own?
One way or the other this will make the banks money while you are forced to jump through hoops to avail yourself of any specious benefits.
Try not paying your entire outstanding balance on time and you will find yourself in a morass of exorbitant interest charges and fees from which extricating yourself will be a challenge.
One way or the other this will make the banks money while you are forced to jump through hoops to avail yourself of any specious benefits.
Try not paying your entire outstanding balance on time and you will find yourself in a morass of exorbitant interest charges and fees from which extricating yourself will be a challenge.
The best deal is to get a CC with a low annual fee, and then pay off the balance every month. I haven't paid a penny in interest since 2007. If something comes up that is too big for your budget to handle in one month, then look for the same as cash deals that give you a long time period to pay off the purchase with no interest. Remember though, all accrued interest is added on if you don't pay in full before the contract end.
If on top of that you get air miles, well that is just gravy.
If on top of that you get air miles, well that is just gravy.
Why would Chase make this offer? Not out of the goodness of their heart. They want something; our personal info, our spending habits, our account numbers- no such thing as a free lunch.
2
Or you could, oh I don't know, just have one credit card you only use for emergencies like a fiscally responsible adult? Pay your bills on time. Pay your loans from school on time. Pay off an affordable used vehicle. Get a home way down the road when you're completely confident you can afford the payments long term. Stay the hell away from the credit card industry that's brought our economy to its knees twice in the last year.
Very simple.
Very simple.
2
What most fail to realize is that the credit card companies have organized a massive theft of US capital. They have essentially inflated the price of every transaction, a 'secret tax' that everyone pays regardless of payment method. Here's how it works in a nutshell:
A. Lure consumers into using credit cards for all transactions, with 'free' rewards and cash back.
B. Charge businesses variable 2-3% processing fees for the "privilege" of accepting cards, and HIDE the actual fee information at the time of the transaction. Businesses can't see this "variable" fee info until the statement arrives a month later, and can't itemize it for the consumer to see how much is paid (over and above the cost of the product/service).
C. Because of B (plus the huge 20-year increase in use of reward cards), businesses now simply add 2-3% into pricing, *regardless of payment*. When is the last time you saw a 'cash discount' at a business? Credit card companies have effectively inflated US currency, and capture about half of the 2-3% inflation whenever a credit card is used! (Some is actual cost of processing.)
Imagine the billions that accrue from 2-3% on every transaction. Calculate how much you lose with 2-3% on every transaction, even cash spending? Is the card paying you back that much? Nope. It is the ultimate devil's bargain. And smart people write articles about how much they 'save' using various rewards cards. When really, we are all are getting robbed in a much larger game.
A. Lure consumers into using credit cards for all transactions, with 'free' rewards and cash back.
B. Charge businesses variable 2-3% processing fees for the "privilege" of accepting cards, and HIDE the actual fee information at the time of the transaction. Businesses can't see this "variable" fee info until the statement arrives a month later, and can't itemize it for the consumer to see how much is paid (over and above the cost of the product/service).
C. Because of B (plus the huge 20-year increase in use of reward cards), businesses now simply add 2-3% into pricing, *regardless of payment*. When is the last time you saw a 'cash discount' at a business? Credit card companies have effectively inflated US currency, and capture about half of the 2-3% inflation whenever a credit card is used! (Some is actual cost of processing.)
Imagine the billions that accrue from 2-3% on every transaction. Calculate how much you lose with 2-3% on every transaction, even cash spending? Is the card paying you back that much? Nope. It is the ultimate devil's bargain. And smart people write articles about how much they 'save' using various rewards cards. When really, we are all are getting robbed in a much larger game.
3
I have known this for a long time. In the beginning I used cash only, but eventually I figured I am paying for all the card users anyway so what was the point? Here in CA we have ARCO gas stations that do not take credit cards. I pay less money for gas because I pay cash. Otherwise, there is no getting around paying that 2-3%.
Ron,
What cards have no fees or annual costs, give points, rebates or miles and no penalty for paying it off each month?
This is an offer I'd like to see.
Gaz
What cards have no fees or annual costs, give points, rebates or miles and no penalty for paying it off each month?
This is an offer I'd like to see.
Gaz
Plenty. You can look on sites like NerdWallet and cardratings for the choices.
Credit is complicated. On the one hand I am bothered by the fact that while my good credit means I am bombarded by credit card offers (several coming in the mail every week), the same banks offer almost zero interest on savings. On the other hand, I am glad to have available credit to use in case of an emergency, an unexpected expense, or a time sensitive purchase as my husband and I are both small business owners/freelancers and our invoices are not paid on a set schedule.
But when banks can afford to "experiment" to the tune of a "few hundred million," while constantly lowering the APY on savings, it just feels like consumers almost being forced into debt. They make that debt more attractive with points and rewards, which you only benefit from when you don't carry a balance. The average consumer is carrying several thousand dollars in credit card debt at any time. So cards like these are really for people who have higher incomes and charge a lot for regular expenses to have an easier way to track spending, and don't carry balances.
But when banks can afford to "experiment" to the tune of a "few hundred million," while constantly lowering the APY on savings, it just feels like consumers almost being forced into debt. They make that debt more attractive with points and rewards, which you only benefit from when you don't carry a balance. The average consumer is carrying several thousand dollars in credit card debt at any time. So cards like these are really for people who have higher incomes and charge a lot for regular expenses to have an easier way to track spending, and don't carry balances.
17
“They are so large that they can afford to experiment,” “A few hundred million in any quarter is a cost of doing business,..."
You might almost say they are too big to fail.
You might almost say they are too big to fail.
15
I can't be bothered with trying to keep track of all of the conditions and exclusions and whatnot. A simple promotion gets my attention, but if there's a risk of losing out if I don't remember to do X,Y, and Z, then it's not worth it.
12
I just added a new CC as a travel card to supplement the one I normally use (Fidelity 2% cash back in Fidelity account), and sort of missed this Chase opportunity. I went for the United MileagePlus since I fly United mostly. My company just switched policy with no corporate cards so now I need a travel points and no international transaction fee card. I haven't activated the card yet, is it possible to close it (with no impact to credit score) and go for the Chase option? If I mostly fly United I'm wondering if it's even better to switch or not?
2
@SGB :Personally, I think the best card is the the Chase/United MileagePlus Explorer Card. This is primarily due to travel perks & miles. You get a mile automatically deposited into your United frequent flier account for every dollar you spend (sometimes they offer 2 or 3 miles when there is a special for certain merchants). You get 2 free bags checked on every flight , even international ones and a free lounge pass for one domestic flight per year and always free United lounge access for every international flight world wide. You get priority boarding on all flights. There is also no foreign transaction fee for foreign purchases. I am probably forgetting a few perks. I have several cards and this one is my favorite, hands down.
5
Get the Sapphire as Chase points are worth more than United Points. I booked two tickets with United on the Chase travel site for 100,000 points. The same exact flight Form United was 120,000 points plus about $100 per ticket in taxes.
3
Sounds good with the points comparison, but don't you also pay airport taxes on the Sapphire tickets?
Can Chase book flights including business class upgrade with MileagePlus?
3
As a millennial I have to admit that this is just our version of chasing something shiny. Our generation fancies itself as skeptical, savvy, digital-age researchers; immune from marketing, above brand loyalty, and able to analyze the numbers and get the best of the system. Chase played right into that by exploiting our tendency to mythologize the Quest for Points: that which requires cunning and resolve, yields abundant spoils, and takes us to faraway lands. And they did it with just word of mouth--we all came hither to hear tale and join the crusade so we could be heroes. Well done, Chase, well done. Let's see where they take this next.
9
We carefully play the points game, have never carried a CC balance in 40 years, put the kids college tuition on the card and paid it off using a 1% CC loan (cheaper than using our own money), traveled to Europe numerous times business class using the Chase British Air CC and its Companion Class Program, got to Australia Business Class, and now will get to Southeast Asia Business Class on points thanks to this Reserve card.
7
I aspire to be this savvy and organized.
The approach that I've taken with points over the past several years is to use a card where the reward is paid back in a manner that is transparent and aligns with my broader, non-financial objectives. In this case, my broader objective is to stay active and healthy, so I've been using the REI card that gives me 1% back on all general purchases which I can redeem for store/on-line credit at REI. Since REI sells stuff that aligns with being more active (running apparel, ski stuff, etc.), the reward lines up directly my broader objective. With no annual fee and no guess work on what a "point" is actually worth, it allows me to spend less time thinking about my credit card and more time staying active...
10
Amex Platinum service is hard to beat. Those $1,500 worth points on United are useless with blackout dates and all.
5
United award availability isn't bad at all. 100,000 will get you a round trip international trip on most dates if booked early enough, plus a domestic.
4
There are no blackout dates on United. I have used it on many international flights over the years.
Waiting for AMX to offer a perk to me not to switch to Chase...
5
Only average American fools will go into more debt right now. The Times They Are A Changing and it does not bode well for 99% of us.
15
This article was clearly written for the 1-5%, not the 95-99%!…$450 annual fee, spend $4,000 over 3 months? Really? Not in my neighborhood. If the banks get in trouble it will be the 95-99% who bail them out again. They have nothing to worry about.
All you have to do is pay the card off in time. In you cannot do this then credit cards are a rip off.
I consider myself a pretty good shopper and here is what I did. In the mid 1990s I took out 2 cards,a Citi Card connected to Ford and a GM card. Initially the Citi card paid back 5% up to $750 per year and a total of $3500 in 5 years. I got to $2800 in 4 years and Ford pulled out. That card now pays 2% up to a max of $1800. But the good news is that you get a check from Citi for any brand car,new or used. I have collected about $10,000 so far. Gm still has the 5% card with a max of $500 or $3500 in 7 years. Buying only new GM cars that has paid about $10,000 as well. The only "catch" on the GM card is that they announced that there would no longer be a limit on the "NEW" card but there would be a limit on redemption. So for example,only $1000 on a Chevrolet. I kept the "old" card and just got $2800 off the price after making the deal.
8
rws--You are a magnificent shopper! I'm envious.
8
Our travel is in our RV for the next year or two. Does this make sense for us? We pay for Rv parks, not hotels. And what about people that use AirBNB. Does it make sense for them?
Isn't this also a ploy to get people to stay in hotels and rent cars?
Isn't this also a ploy to get people to stay in hotels and rent cars?
3
AirBNBs count as travel. I don't know about RV parks; that would be important to find out before deciding, perhaps by contacting them directly. A lot of it has to do with how merchants themselves classify their services. From the Chase website: "Merchants in the travel category include airlines, hotels, motels, timeshares, campgrounds, car rental agencies, cruise lines, travel agencies, discount travel sites, and operators of passenger trains, buses, taxis, limousines, ferries, toll bridges and highways, and parking lots and garages."
3
Educate me. I'm not a points guy. I don't talk fly. What is a point? What's it worth in, say, American dollars? You mention that 100,000 points is worth $1500. By my math a point is worth 1.5 cents. Is that right? Seems like an odd conversion rate. I imagine they do that on purpose.
But Ron, you throw that point thing around all over this article without ever mentioning the rate. 100,000. 100,000, 100,000. 100,000 of anything sounds like a lot. Just wondering what it means.
But Ron, you throw that point thing around all over this article without ever mentioning the rate. 100,000. 100,000, 100,000. 100,000 of anything sounds like a lot. Just wondering what it means.
10
Sorry, I tried to make it clear in the piece that it is hard to put a value on points and make it simple by letting folks know that if you want to keep this deal simple, you just trade those 100,000 points for $1,500 in money to spend on travel. I'm glad that part was clear to you.
5
If someone doesn't understand "points" after all the years they have been used as incentives or rewards then a card like this is not something they should even consider.
This is a great card although we have the Am Ex Platinum card too. The problem Am Ex needs to address is that card holders like us have dropped it as our primary travel card. All companies should figure out how to invent us to keep them as the number one, go to card in our wallet.
This is a great card although we have the Am Ex Platinum card too. The problem Am Ex needs to address is that card holders like us have dropped it as our primary travel card. All companies should figure out how to invent us to keep them as the number one, go to card in our wallet.
4
This raises more questions than it answers. These particular 100,000 points - the ones that come from the annual fee, or whatever - equal $1500. But a different set of points - say ones earned from purchases - might be worth more or less than the original points???
This is not the venue for a back and forth conversation and I don't expect answers here. But you might consider that as a topic for an article. You already write pretty regularly about how points can fit into personal finances. I'd like to see an article with a high-level explanation of how credit card points work in general. I'd read that. (But then I read all your stuff, Ron. I do like your work.)
This is not the venue for a back and forth conversation and I don't expect answers here. But you might consider that as a topic for an article. You already write pretty regularly about how points can fit into personal finances. I'd like to see an article with a high-level explanation of how credit card points work in general. I'd read that. (But then I read all your stuff, Ron. I do like your work.)
3
If they want to keep loyal customers they should not change up the value of the offers to current members. Best way to get people to jump ship
4
Fie on Chase. Our credit scores severely down due to a poor spending/credit limit ration, but Chase won't up our credit limit due to our new scores. And this after years of paying the full amount due every month. So I guess we won't be taking advantage of their offer. Perhaps Chase would like to pay the premium we are being charged on our car insurance due to our lowered credit scores! Thank goodness we aren't in the market for an apartment. We'd be on the street.
6
Everyone I work with has the Sapphire Reserve, not because of the signup perk as much as the 3% cash back (4.5% if redeemed with chase rewards) on travel and dining expenses as well as the 0% foreign transaction fee. It's the perfect card for business consultant types who eat out 2-3 meals each workday. Now if only it was chip-and-pin enabled...
10
It is chip enabled, not pin though.
Why don't any of these stories address the customer service? If you check feedback on this card's dispute process, you will find that it is negative. In the end, you might lose more money than you can gain in points or rewards.
22
Chase has amazing customer service. There's no phone tree so when you call the number you get straight through to a human, based in the US. Even the Amex Platinum makes me type in numbers and menu options before I'm allowed to talk to someone.
6
One thing that keeps me loyal to Chase is their excellent website. Way better than Citi, BAC, etc., IMO.
Was thinking the same exact thing. I have stayed loyal to Amex (currently the Starwood card) because of truly exceptional customer service (be it fraud, insurance programs, card replacement, etc) and a very good rewards program. Had an awful experience with Citi some years ago and it has kept me away from any non-Amex card since.
American Airlines regular-level CITIBANK card at $95 (and waived the first year) is a very solid card, including the $100 off each ticket purchase once you've spend $30,000 in a year as well as group 1 boarding and one free checked bag.
Sadly, the $450 CITIBANK AA EXECUTIVE card takes away the $100 deduction while adding only--admitted solid--Admirals Club membership. This card would be way more attractive if they kept the $100 deduction while adding the other perks. Otherwise, it has limited appeal. ANYONE FROM AA reading this?!?!
Sadly, the $450 CITIBANK AA EXECUTIVE card takes away the $100 deduction while adding only--admitted solid--Admirals Club membership. This card would be way more attractive if they kept the $100 deduction while adding the other perks. Otherwise, it has limited appeal. ANYONE FROM AA reading this?!?!
3
Points and airline miles are pseudo currencies subject to devaluation at the drop of the issuer's hat. That's why I take my rewards in cash. Hard to beat the humble BankAmericard 1-2-3 Rewards Visa for that, at least here in frugal flyover country. Particularly when coupled with BofA's Premium Rewards program.
15
There is a recent trend here - Amex is not going to foolishly chase unprofitable business and is letting the big and often foolish big banks have it. That's why thwy let Citi have the Costco business, USB have the Fidelity card business and let Chase take this $200+ million dollar loss. The big banks have a habit of going after what turnsout to be money losing business towards the end of every business cycle. This one has been going longer than usual.
Secondly, I've lost too many piints over the years as work or other things changed in life. Now I only go for caah back cards. As Jerry Macquire said "show mw the money". They cant take that back from you.
Secondly, I've lost too many piints over the years as work or other things changed in life. Now I only go for caah back cards. As Jerry Macquire said "show mw the money". They cant take that back from you.
10
you have to be careful using these offers . it's works out good for people who travel by air . it's a cat and mouse game .
7
Convenience and compatibility with copying and pasting daily on line reports of pending and posted transactions into my personally designed CC tracking spreadsheets, made me eschew AMEX Blue, and it general lack of acceptance in places not typically being frequented with my credit rating, but retired and on SS.
Never use CrCrd's to lend money. FIND SOME OTHER WAY, it will be cheaper.
Never use CrCrd's to lend money. FIND SOME OTHER WAY, it will be cheaper.
5
Interesting to hear how rich folk live. To some, $450 (or $150) in annual fees on a credit card is nothing, apparently. Some people can afford to take vacations, apparently. Credit cards are just a fun game about points and miles and rewards. But to the rest of us, they are a ball and chain we drag around most of our lives, hoping to make the next minimum payment and maybe escape bankruptcy... If we ever do dare take a vacation, we put it on our credit cards, if we can, and then spend the next few years trying to pay down the balance. Oh it's great fun. You ought to try this other credit card game we poor folk play.
72
After years of poor credit due to misuse as young adults, both my husband and myself learned to live with the cash we had on hand. If we couldn't afford something, we just didn't buy it. Years later, this habit of living within our means allowed us to save up for a new home. The purchase of a home improved our credit rating even more, and while we still live within our means, credit offers us a safety net we did not have before. If used wisely, credit need not be a ball and chain. And, vacations are not just for the rich. Your attitude makes me think that you find it easier to blame everyone other than yourself for your misfortune. We all have the ability to make our own fortune, and how we define "fortune" for ourselves makes a huge difference. I don't need a fancy car or expensive vacation to feel the wealth of my other blessings.
51
In 2013, JP Morgan Chase paid a $13 billion settlement to the US government over their part in the mortgage crisis. In 2014, the same corporation made history - paying the largest bank forfeiture in history, to the US government, for their failure to comply with the law and failing to file a Suspicious Activity Report relating to the suspicious activity of Bernie Madoff, whose Chase bank account was a the center of his $65 billion dollar Ponzi scheme.
As early as 2008, JP Morgan Chase officials were aware of suspicious activity by Madoff - they filed a report in the UK, but failed to file the report in the US.
Instead of doing business with them, perhaps we ought to be criminally prosecuting those corporate employees (including executives) who were aware of the suspicious activity and either actively chose to hide that information, or, who failed and refused to comply with federal law by filing the report in the US.
As early as 2008, JP Morgan Chase officials were aware of suspicious activity by Madoff - they filed a report in the UK, but failed to file the report in the US.
Instead of doing business with them, perhaps we ought to be criminally prosecuting those corporate employees (including executives) who were aware of the suspicious activity and either actively chose to hide that information, or, who failed and refused to comply with federal law by filing the report in the US.
68
Or we could take their $1,500 and feel good about having done that. I don't mean to be flip -- I actually struggle with this a fair bit personally. Given how much bad behavior so (so) many big companies have engaged in, at what point do we not do business with them on principle?
7
But the money the banks are flipping you is actually coming from the businesses where you use the card in the form of additional charges above the regular discount for delivering a "premium client". It's easy enough to be flip about taking a banks' money but how about the couple that run the restaurant down the street? Or the guy who details your car?
14
"At what point do we not do business with them on principle?" It depends how strong our principles are. My parents would not buy anything manufactured in Germany,and taught their five children not to do so,as did their peers. I wouldn't drive a German car if someone offered me one as a gift. My brother will not buy any foreign car. He would not move his factory overseas when his peers did, knowing that this would eventually cost him his livelihood, which it did .
7
"This card saves you $1,500."
"Good, hand it to me."
"Good, hand it to me."
4
Get the card, spend $4,000 in three months (easy to do if you put groceries, gas, utility bills and all other day-to-day expenses on the card) get $1,500 in travel points, go on a nice vacation and spend all those points, then cancel the card. If I understand this correctly, you'll have to pay $450 for one year of the card, but end up $1,000 ahead.
Am I missing something here?
Am I missing something here?
12
Missing one thing: If $300 of that $4,000 are travel expenses, that $450 drops to $150, as you get it back in the form of a credit. So as long as you don't mess it up, you have it right. Chase hopes you'll spend three months growing accustomed to the other aspects of the card and stick with it. (Or that you'll forget to pay or carry a balance.)
7
Thanks so much for responding, and so quickly, Mr. Lieber. I've signed up and was approved in a nano-second. Glad I caught this story in time...
3
Caveat: read the fine print! I applied for, and received this card, then put my husband on it. I was charged $75 for doing this. When I called Chase, I was told it is stated on the application. It is. I missed that tidbit. This $75 fee is ongoing, so the card, for a couple is actually $225 a year. Hefty!!
" and track the new bills so we don’t end up paying late. "
Every card lets you auto-pay the full amount due on the due date. Everybody that pays in full each month should do this. I have *all* monthly bills on auto-pay. A couple large and unpredictable ones come out of my savings account, but you are limited to six electronic deductions from savings (which includes online transfers to checking).
Every card lets you auto-pay the full amount due on the due date. Everybody that pays in full each month should do this. I have *all* monthly bills on auto-pay. A couple large and unpredictable ones come out of my savings account, but you are limited to six electronic deductions from savings (which includes online transfers to checking).
7
Agreed. But sometimes when you first set it up, it doesn't take the first month and/or you have to check to make sure that it does and all that...
4
As a retired person, I really enjoy the ability to travel for free to Europe using points. And I too have switched credit cards to maximize points. My credit score has never taken a hit from this. Indeed, my credit score seems to have improved as a result. Unfortunately Chase has figured out that many people are doing this – in spite of excellent credit, I was turned down for this credit card offer. The reason was too many credit card applications in the last two years. Sigh…
10
Ditto. Too many recent credit card aquisitions chasing points will get you shut out of this card.
1
I find it's a very good idea (if you can afford it) to get one of the "good" cards (I have a Citibank Platinum AAdvantage), and keep it for the extra year. Keep building up your miles on that card for awhile and don't chase an extra 10K or so miles on another. After that, it's been long enough that you'll get approved easier (have hit the 2 year mark, and was immediately approved for a JetBlue Mastercard). Just a thought; cheers!
Beware aggressive enforcement of the requirements by issuers. They are highly motivated to have you sign up for the credit card, but not much to follow through on the deal. Keep your paperwork when signing up, and validate the offer when doing so. I chased a points bonus signing up for a Southwest Airlines card issued by Chase, met their purchase requirements, but was denied the points as they stated I signed up under another offer. I was very confident I signed up in response to a more lucrative offer, but of course have no way of proving it. They said they change their offers all the time! Additionally the offer said the points may take up to eight weeks to show in account, yet when I called right after 8 weeks when they didn't show up, they said I waited too long to object. I cancelled the credit card, and have not flown Southwest since.
15
David, Thanks for the tip. Southwest via Chase along with other affinity cards finagle their terms, so customers may end up on the short end...as occurred in your case.
In the distant past I had a similar experience as you did. Now, I don't trust the verbal conversation I have with any financial sales rep. If the issuer won't provide me written / hard copy terms at the time I sign-up, I pass their offer by.
In the distant past I had a similar experience as you did. Now, I don't trust the verbal conversation I have with any financial sales rep. If the issuer won't provide me written / hard copy terms at the time I sign-up, I pass their offer by.
3
There is even one more great benefit of the Chase card that Lieber left out: no foreign transaction fees, and the conversion rate is consistently close to the daily on-line rate--I continue to be amazed. A great card for anyone who does international travel. I've never found a card this good, and no, I don't work for Chase
15
Thankfully, no conversion fees has become nearly table stakes these days with the higher-end cards. When I first started covering cards many years ago, this wasn't the case (and the conversion rates were a problem). Thanks for noting it.
9
Sounds like a good way to waste a lot! of money.
4
A good way for whom to waste a lot of money?
1. Use your credit card as a debit card and to pay bills. Don't overspend
2. Pay your bills on time, in full, every month.
3. ???
4. Take the bank's money.
1. Use your credit card as a debit card and to pay bills. Don't overspend
2. Pay your bills on time, in full, every month.
3. ???
4. Take the bank's money.
28
And if you don't normally spend thousands a month on travel? A cash back card with no annual fee fits your description. Miles, etc, cards only work when your employer picks up the tab and you use the miles for your vacation.
3
The spend doesn't have to be on travel to either earn or redeem points. As many of our bills as possible, including health insurance, cell phone, and cable/internet--as well as groceries, gas, and other everyday spending--go on one of these cards. And you can redeem the Chase points for credit on Amazon. It can be lucrative if you take the time to understand and maximize the rewards.
1
Just got the Chase Sapphire card. Mulled this over for several weeks and decided it was the best deal based on my household spending habits (a few K per year spend on airfares and hotels), and never ever carrying a balance. Always good to compare your current rewards card with the new offering. Several years back my family of five got a California vacation with air and hotel based on Capital One points accumulated from household spending and two kids college tuition.
3
I have the other one, Chase Sapphire Preferred that also comes in metal. Great benefits, 50,000 signing in bonus plus 10,000 partner (if you add your spouse or anyone from family) bonus.
Fee is waived for the 1st year, otherwise $95 per year. We get 2x points for spending on travels, restaurants, hotels etc., and 1x for all other purchase. Honestly, I did the math comparing the pros and cons of the Sapphire Preferred and Chase Reserve, I tend to tilt towards Preferred because as an average flier and traveler (3-4 international and 10 national trips), in the long run, I'd tend spend less on the card fees. The lounge experience is very limited for Reserve, but I fly business class so it doesn't matter to me which card I use.
I thought about getting the Reserve because we have >820 credit score and zero loans. We didn't, because getting 3x vs 2x points and paying fees $150 (with $300 travel bonus) vs $95 even it out. The only big difference is 40,000 extra signing in bonus. I'd rather collect 5x points on selective quarterly expenditures on our other no-fee Chase Freedom cards and transfer those points to the Chase Preferred to accrue bonus points. Which, we did and right now we have >150,000 points in total.
For me the best part of these two cards are travel insurance, rental car insurance, buyer's insurance (including electronics for additional 1 yr), trip cancellation insurance. That's a big deal esp. in urgent and emergency situations, or inclement weather.
Fee is waived for the 1st year, otherwise $95 per year. We get 2x points for spending on travels, restaurants, hotels etc., and 1x for all other purchase. Honestly, I did the math comparing the pros and cons of the Sapphire Preferred and Chase Reserve, I tend to tilt towards Preferred because as an average flier and traveler (3-4 international and 10 national trips), in the long run, I'd tend spend less on the card fees. The lounge experience is very limited for Reserve, but I fly business class so it doesn't matter to me which card I use.
I thought about getting the Reserve because we have >820 credit score and zero loans. We didn't, because getting 3x vs 2x points and paying fees $150 (with $300 travel bonus) vs $95 even it out. The only big difference is 40,000 extra signing in bonus. I'd rather collect 5x points on selective quarterly expenditures on our other no-fee Chase Freedom cards and transfer those points to the Chase Preferred to accrue bonus points. Which, we did and right now we have >150,000 points in total.
For me the best part of these two cards are travel insurance, rental car insurance, buyer's insurance (including electronics for additional 1 yr), trip cancellation insurance. That's a big deal esp. in urgent and emergency situations, or inclement weather.
25
Grammar: It then gives out a generous NUMBER of points.
9
Why all the hoopla? 100,000 point promotions have actually been standard when banks launch new premium cards (e.g., Citi Prestige) or targeted promotions of old cards (e.g., AMEX Platinum). In the present case, you're eventually stuck with Chase and its primary American transfer partner, United. Both are awful companies. (Full disclosure: I am a recovering United million-mile flyer.) The $300 travel credit is necessary because Chase is institutionally incapable of offering customer service at AMEX's level.
As airlines devalue frequent flyer miles over time, the more interesting story is USAA's new 2.5% cash back card. That's a stunningly high rebate for general purpose spending.
As airlines devalue frequent flyer miles over time, the more interesting story is USAA's new 2.5% cash back card. That's a stunningly high rebate for general purpose spending.
28
Isn't the USAA card still in pilot -- and only available to USAA members?
5
Thanks for responding. Available in Idaho, but yes, it's for USAA members.
2
Thanks for the tip. Pounced on MileagePlus when I got 50k but I don't fly a ton -- just got Silver for the first time. Considering this offer because it can help me stack miles (either to put me over 200k at United, or to book through Chase) but I've previously avoided any card with a fee, and the lounge selection looks terrible through Priority Pass.
I am a USAA member so maybe I'll just wait until the 2.5% card comes out of trial.
I am a USAA member so maybe I'll just wait until the 2.5% card comes out of trial.
Did you see the RATE on that card? I have an 800+ credit score, and not a single one of my cards have as high a rate as this Chase deal!!! They'll get your $ somehow, I guess!
12
Why does the rate matter if you pay off the balance each month?
37
Rate ? You don't get one of these cards and carry a balance. You use them as a delayed debit card and pay them off each month. If you carry a balance on ANY credit card for any period of time, you shouldn't have one. Pay it off with a bank loan and cut the card in half. Read the card statement. It'll tell you how many centuries it'll take to pay off the card if you just make the minimum monthly payment and how many extra dollars you'll give to the bank for the privilege.
1
It seems that Chase has already lowered their offer to 50k points: https://creditcards.chase.com/credit-cards/chase-sapphire-preferred?CELL...
2
Wrong card. As I mentioned in the piece, it's easy to get Preferred confused with Reserve. Reserve is what you want for the 100k points.
10
Yes, credit cards can be dangerous, but it depends on the context. I'm a millennial who applied for and received this card and couldn't be happier. My fiance and I ran the numbers beforehand and determined this was too good an offer to pass up, even with the $450 annual fee. Given the $300 travel credit, it's really only a $150 annual fee, and if you live in a city like we do the points practically fall out of the sky. Every cab ride, coffee or dinner out = $$$. We earned $45 in reward dollars in the first billing cycle alone. That, plus business trips (booked on my card and reimbursed by my company), just made it a no-brainer. We have almost hit the $4k spending mark and plan to use that cash to help finance our honeymoon!
11
Important tip in here: If you can use your personal card to pay for work trips (and, crucially, get your expenses filed in time to get reimbursement before the card bill comes due, which I sometimes have trouble with), you can really pile up a lot of points if you use your rewards card.
7
Be sure to send the nice folks in accounting a card from your honeymoon hotel, since they're the ones who paid for it.
3
Not to mention the fact that this is in essence a non taxed fringe benefit. A gift from your employer and Uncle Sam. Or if you think too much about it, a gift from all other tax paying Americans.
7
These banks are able to offer these huge sign-up offers not because they are generous but because they are making a killing from poor saps who sign up, pay interest or spend more than their means allow. Wake up! These are not deals, these are scams!
Many links in this article is to a site that will get paid for applications and page clicks.
The "points" guy is a shill for Chase and is essentially a wing of their marketing department, he doesn't even travel on points, he pays for his first class flights (he once paid $32,000 for a one-way flight to the UAE). The rest of these "bloggers" all get paid based on approved applications, so of course they're going to have great things to say and showcase their "luxury" travel lifestyle that none of us mere mortals have the means to obtain.
Many links in this article is to a site that will get paid for applications and page clicks.
The "points" guy is a shill for Chase and is essentially a wing of their marketing department, he doesn't even travel on points, he pays for his first class flights (he once paid $32,000 for a one-way flight to the UAE). The rest of these "bloggers" all get paid based on approved applications, so of course they're going to have great things to say and showcase their "luxury" travel lifestyle that none of us mere mortals have the means to obtain.
30
Of course the banks are not offering these deals because they are generous. The deals are, indeed, deals for people who use them in such a way so that they will benefit. At one point,I saw an offer for a Bank of America credit card which promised $300 if one one spent $500 within three months.I took out the card, spent $500, paid off the balance immediately, collected my $300 ,and retired that card to a drawer .
I use credit cards to earn point which I convert to cash. I don't pay any card fees, and I pay my balance in full every month,which is auto-deducted from my checking account.
I use credit cards to earn point which I convert to cash. I don't pay any card fees, and I pay my balance in full every month,which is auto-deducted from my checking account.
2
Yes, it's a fantastic scam! I'm drinking a 150 dollar bottle of French champagne in the Heathrow lounge, then flying in BA first class back to the US.
These offers work for a certain type of person.
Remember record of the month clubs back in the 70s? If you could follow the game rules (return a post card declining the monthly offering, buy 6 or 8 records within 2 years), you ended up with 20 or so albums. In the 80s repeat with cassettes, 90s with CDs.
These offers work for a certain type of person.
Remember record of the month clubs back in the 70s? If you could follow the game rules (return a post card declining the monthly offering, buy 6 or 8 records within 2 years), you ended up with 20 or so albums. In the 80s repeat with cassettes, 90s with CDs.
4
I really like the Sapphire Reserve card. I use it for nearly everything, and then have the automatic payment set to pay the balance monthly. Arranging travel and hotels has been nearly flawless. It's effectively replaced my debit card for most purchases, and my Amex Platinum hasn't been used in a few months.
6
Reserve is gives you everything the Sapphire does, and much, much more and only costs $55 a year more
4
All of these points schemes where you only get value for certain purchases at certain times and can only redeem points for certain products are garbage compared to the Capital One Spark card which returns a full 2% cash back on all purchases. I have used that both for my business and personal card and gotten basically a 2% discount on everything I buy.
4
This is, in theory, a small business card, fyi...
4
LOL someone clearly doesn't understand how the points game works. Chase UR, Amex MR, Citi TYP points can be worth up to 2 cents if used correctly or even more depending on the flight/deal. When you earn multiple points for purchases like the Reserve, 3 points per dollar x 2 cents per point means 6% (or more) discount on travel/dining in this case. Your Spark card also has a $59 annual fee. Hardly a steal when the Citi Double Cash card is also flat 2% on everything with no annual fee.
4
$20k spent on travel or dining on the Chase Reserve will get you 60k points, equivalent to $900 if redeemed for airline ticket purchases (worth much more if transferred to airline points for premium travel). That same $20k spent on the Cap one card yields only $400. Not to mention Chase's generous $100k sign up bonus (worth at least $1500, effectively paying for the first 10 years annual fee) and lounge access, the Reserve is a no-brainer for anyone that travels frequently.
The Chase offer is not so great. These banks are not dumb. They want your $450 (every year) and they want the percentage they get from retailers.
The "$1,500" in points you get are only redeemable on the Chase website. I've been a customer for years. The prices on that website are consistently 10-15% higher than sites like Expedia and Priceline.
If you have the credit and the wherewithal to qualify for this card, you have better things to do than chasing nickels and dimes on gimmicky promotions.
"There's no free money out there".
The "$1,500" in points you get are only redeemable on the Chase website. I've been a customer for years. The prices on that website are consistently 10-15% higher than sites like Expedia and Priceline.
If you have the credit and the wherewithal to qualify for this card, you have better things to do than chasing nickels and dimes on gimmicky promotions.
"There's no free money out there".
69
No free lunch?
Tell that to the $3k I have sitting in my bank account from various rewards. Or the free trips I've taken to Puerto Rico, San Francisco, San Diego, South Carolina, Phoenix and Hawaii. Not to mention the 800,000 miles I still have to spend!
As long as you possess some sort of common sense, the ability to manage multiple accounts and self control with spending you can obtain many "free lunches" from the credit card companies. However, luckily there are many people who do not possess those traits that allows me to travel on their dime!
Tell that to the $3k I have sitting in my bank account from various rewards. Or the free trips I've taken to Puerto Rico, San Francisco, San Diego, South Carolina, Phoenix and Hawaii. Not to mention the 800,000 miles I still have to spend!
As long as you possess some sort of common sense, the ability to manage multiple accounts and self control with spending you can obtain many "free lunches" from the credit card companies. However, luckily there are many people who do not possess those traits that allows me to travel on their dime!
10
You can transfer all the points to BA or other frequent flyer/hotel programs.
2
Not true--the points are transferable to United, Southwest and many other programs. With careful attention to the program rules, you can get much better use of your points that way
3
The Chase Reserve is a great card for people who travel even moderately. The cost after the $300 reimbursement is $150 per year, and that can be made up out of the various bonuses the card offers, not to mention the airline miles. For instance, if you typically purchase a meal at the airport, the free lounge access means that food and drinks are now complimentary. There are also a lot of travel protection features built in, such as reimbursement for lost luggage, flight delays, etc. And psychology aside, it's hard to see why having a credit card means necessarily spending more, if one is disciplined about it.
5
they do this because compound interest is moot in most savings accounts, and have been moot for many years. this just makes them look good.
4
Nothing inherently wrong with visiting the travel blogs mentioned in this article. But readers need to know that these bloggers get paid for each approved application they generate so they have a huge incentive to fawn over these cards and not say anything negative. Some banks pay $50 per approval , some much much more. Best to visit the blogs that refuse affiliate links, and that provide honest pros/cons on cards,travel deals, bank deals. Doctor of Credit website comes to mind.
47
Thanks. I find that they are pretty upfront about the fees they earn, and I've found Points Guy and Gary Leff's blog to be informative and fair (even if I disagree). Full disclosure -- the NYT is in this business now too via our acquisition of the Wirecutter, which also earns affiliate fees.
17
I disagree! Almost *NO* blogger is willing to disclose how much they make from hawking credit cards. One blogger, Mr. Money Moustache, DID. $4k/month he was making from the credit card referrals. $4,000 per month. And he's a small time player compared to the majors who are taking easily $7k+ per month from credit card referrals.
Since I make less than $5,400/hr (gross), $1,350 for 15 minutes of my time seems like a fair investment.
3
Great idea! My daughter just out of college ought to sign up for one of these. Why not spend $4000 furnishing a new apartment; she's one of the lucky ones with little debt and a job lined up.
Yeah, no. It's still a stupid idea to think these cards really give you free money. Get no annual fee, cash back, on a card that makes travel abroad a little less pricey.
Yeah, no. It's still a stupid idea to think these cards really give you free money. Get no annual fee, cash back, on a card that makes travel abroad a little less pricey.
7
I took 20 free round trip flights and stayed 38 free hotel nights in 2016 all from credit card signup points. I have an 820 credit score and zero debt.
But, to each their own.
But, to each their own.
19
"Get no annual fee, cash back"
100,000 Ultimate Rewards Points = $1000 cash back. If your daughter can meet the initial minimum spend to earn that and also would already spend $300 a year on travel, then the net cost of the annual fee is $150, so she still comes out $850 ahead.
Playing these credit card games does require some organization and self-discipline; they're not for everyone. Generally, I think it's not a great idea for new grads, who may not yet have personal experience of how painful credit card debt can be and thus may be tempted to overspend. But, with reasonable care, you can pick up a few hundred dollars a year. For me, it's a way of getting back some of the interest and fees I paid out when I was young and broke.
100,000 Ultimate Rewards Points = $1000 cash back. If your daughter can meet the initial minimum spend to earn that and also would already spend $300 a year on travel, then the net cost of the annual fee is $150, so she still comes out $850 ahead.
Playing these credit card games does require some organization and self-discipline; they're not for everyone. Generally, I think it's not a great idea for new grads, who may not yet have personal experience of how painful credit card debt can be and thus may be tempted to overspend. But, with reasonable care, you can pick up a few hundred dollars a year. For me, it's a way of getting back some of the interest and fees I paid out when I was young and broke.
4
Casey, care to share any more of your tips? You sound like you could write your own article on this topic. :)
Great article as always, thanks! To clarify the Citi Prestige reductions, they didn't exactly keep the fourth night free. The fourth night rebate will now be based on the average nightly cost of your whole stay, and you will have to pay the taxes on that night. It kind of makes me smile to think that a lot of people who are skilled at these credit card games must have been moving to the most expensive suite in the hotel for that fourth night.
4
Ha. Thanks for pointing that out. I'd noticed what they did there but decided to give them a pass, mostly for space reasons here. Maybe I shouldn't have...
2
Or you could just cut up your credit cards and stop spending, and consider that a great bonus. There's a reason these companies are offering such "good deals," and it isn't altruism: they're making a fortune off consumers.
Stories like this are neo-liberal propaganda disguised as analysis; I imagine Chase is delighted by this free advertisement for a high-fee card.
Stories like this are neo-liberal propaganda disguised as analysis; I imagine Chase is delighted by this free advertisement for a high-fee card.
56
I like to consider myself more of a radical centrist and professional system-beater...
18
professional system-beater would seem to be something clown Trump aspires to.
3
If everyone stops spending, the economy will grind to a haul. Anyway, I never understood why people keeps saying dont spend. I am of the notion you dont overspend.
6
Paying for a credit card? No thanks! I'd rather keep my credit score intact! For the birds!
9
15 credit cards here. 820 credit score here.
Multiple credit cards negatively affecting your credit score is a myth. In fact, multiple cards increases your credit utilization which most likely will increase your score.
Multiple credit cards negatively affecting your credit score is a myth. In fact, multiple cards increases your credit utilization which most likely will increase your score.
15
don't know about you, but my time is more valuable than using it to keep track of a multitude of credit cards, paying their bills on time so as not to be hit with ridiculous penalties and interest charges, and then remembering to use certain ones to buy certain things.
Probably the easiest to use and best bang for the buck credit card is Citi bank's 2% cashback card. No annual fee. keep it simple
Probably the easiest to use and best bang for the buck credit card is Citi bank's 2% cashback card. No annual fee. keep it simple
2
One credit card, 820 credit score. A no-fee Citibank card.
Plus I have an Amex card, which is a charge, not a credit card. Best thing about the Amex card is you have to pay the balance in full each month.
My banker tried to sell me a new credit card, (for $150 cash back) and she confirmed every time you get another card, your credit score takes a hit.
Plus I have an Amex card, which is a charge, not a credit card. Best thing about the Amex card is you have to pay the balance in full each month.
My banker tried to sell me a new credit card, (for $150 cash back) and she confirmed every time you get another card, your credit score takes a hit.