It's nearly the end of 2016, so I'm reviewing my credit cards: whether to keep or close my existing credit cards, and which new cards I want to apply for.
To put my thoughts below into context, the goal for my husband and me with our frequent flyer miles and loyalty points is first class and business class travel. We highly value our award redemptions for first class and business class, because otherwise we would at least pay for business class, and sometimes (such as the current British Airways First Class trip I'm on) I'll pay for first class, since in this case it was about $2100 roundtrip. But for other trips we've taken in Etihad First Apartment, Singapore Suites, Emirates A380 First Class, Cathay Pacific First Class and others, we're often redeeming miles at 8-10 cents per mile or more–much greater value to us than, say, a 2% cash back card.
On the flip side I don't care about hotel loyalty cards unless they have a great bonus (such as the Hyatt Visa) or can be lucratively transferred to airline miles, such as the SPG AMEX, which transfers 1:1 to many airline frequent flyer programs and even adds a 25% bonus when transferring in increments of 20,000 points. The reason I don't care about hotel points is that the best hotel products are not available with points. The top luxury hotels and resorts, such as Aman, The Peninsula, Four Seasons, Mandarin Oriental, Rosewood and Belmond don't have points programs–they don't need to, since they attract loyal guests with their hotels and service alone, no additional incentive needed. For these hotels, the secret to upgrades and complimentary breakfast is to reserve as a TravelSort Client, to enjoy preferred partner or Virtuoso benefits during your stay.
My Current Active Credit Cards: Keep or Close?
Annual Fee: $450 fee, not waived the first year
I now use my Chase Sapphire Reserve more than any other credit card I have, due to 3X Ultimate Rewards points on all travel and dining, including international travel and dining (since there's no foreign transaction fee) so I definitely plan to keep this card, even with the $450 fee. Effectively, it's a $150 per year card since you receive $300 of travel in statement credit each year from your December to December billing cycle. So if you haven't applied yet, you may as well wait until 2017 so that you can ensure you receive your statement credit in 2017, and then again in 2018.
2. Ink Plus: Keep or Downgrade to Ink Cash
Annual Fee: $95 fee, waived the first year
Chase is no longer offering this card for new applications, although I have a pre-existing card. I love the 5X Ultimate Rewards points on Internet, cell phone, and office supply stores (where I can buy gift cards for many retailers, making possible 5X for all Amazon spend, 5X for all Whole Foods spend, etc.).
3. Citi Prestige: Close
Annual Fee: $450 fee, not waived the first year
The past few months I've been using my Citi Prestige more than usual, due to an extra 4X per dollar for travel (see
Citi Prestige Retention Offers and Tips) but that offer was only for 6 months and I've already maxed out the offer, so I'm no longer using the card since I value Ultimate Rewards points more highly than Citi ThankYou points. The Citi Prestige will no longer get you access to American Admirals Club lounges from June 20, 2017, and while it's not as if I used that benefit so often anyway, I see no reason to pay an effective $200 per year for the Citi Prestige (since there is a $250 airfare credit per December to December billing cycle) after I collect my $250 airfare credit for 2017.
Annual Fee: $450 fee, not waived the first year
After earning the 100K signup bonus, the main reason I've kept the AMEX Business Platinum is for complimentary Centurion Lounge access. And since my husband no longer has his AMEX Platinum, I may as well keep the card at least until my annual fee comes due later in 2017, since we have travel prior to then that will have us in two airports with AMEX Centurion Lounges, so I may as well hold on to the card to give us access. In any case, there are no more pro-rated refunds of the annual fee, so it's in your interest to keep AMEX cards until the annual fee comes up for renewal.
5. Hyatt Visa: Keep
Annual Fee: $75, waived the first year
While our primary reason for getting the Hyatt Visa again for both of us was 4 complimentary nights at the Park Hyatt Maldives, before staying at Cheval Blanc Randheli, I plan to keep my Hyatt Visa even when it comes up for renewal as I expect to be able to recoup the annual fee from the complimentary anniversary night at a Category 1-4 Hyatt.
6. British Airways Visa: Close
Annual Fee: $95, not waived the first year
I plan to close my British Airways Visa sometime in Q1 2017 before the annual fee comes due, since the card's annual fee doesn't pay for itself with any ongoing benefit the way the Hyatt Visa does. Now, if there was an annual mileage bonus or upgrade that could make a difference, but there isn't one.
7. Citi AAdvantage Platinum Select: Keep Until Able to Reapply
Annual Fee: $95, waived the first year
Citi has made it harder for most people to earn a bonus again for Citi AAdvantage cards, as the regular application states that if you've opened or closed a Citi AAdvantage card within the past 24 months, you're not eligible to earn the signup bonus. That provides an incentive to keep a card you've had for a year, so that you can hopefully get another card in about a year, instead of closing the card and having to wait two years. And if you redeem AAdvantage miles during the year, that can compensate for the $95 annual fee, since you earn 10% back of the AAdvantage miles you redeem from your account, up to a maximum of 10,000 AAdvantage miles per year.
8. CitiBusiness AAdvantage: Keep Until Able to Reapply
Annual Fee: $95, waived the first year
The same 24 month rule is in effect for CitiBusiness AAdvantage cards, so similarly I'll likely keep the card for another year, until I can reapply and hopefully earn the bonus again. Targeted offers sometimes don't have the 24 month rule, but these offers are often for new AAdvantage members who haven't had Citi AAdvantage cards before, so I'm not holding my breath on receiving one.
9. Chase Freedom Cards: Keep
No annual fee
After my Chase Sapphire Reserve and Ink Plus, the card I tend to use most often is my Chase Freedom with rotating 5X categories, of which I now have 2.
Credit Cards I Plan to Apply For
1. 80K Ink Business Preferred
Annual Fee: $95, not waived the first year
The new Ink Business Preferred offers a great 80K signup bonus with $95 annual fee, and 3X on travel, shipping purchases, and Advertising, as well as Internet and phone (although if you already have the Ink Plus or Ink Cash, you're better off holding on to them as they have 5X on Internet and phone)
2. Lufthansa Miles and More Card, If 50K Offer Returns
Annual fee: $89, not waived the first year
The current offer is only 35K miles, so I'm hoping for a return of the 50K offer to apply again for this card.
3. Citi AAdvantage Cards, Once I Requalify or If I Receive a Targeted Offer
Which cards do you plan to apply for, keep or close?
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