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I get almost all my miles from credit cards.
- I rarely fly a paid flight on an airline that offers miles (and when I do, it’s usually not paid by me)
- I don’t do much online shopping through airline portals
- My dining program earnings are minimal
For me, it starts and ends with sign up bonuses and category bonuses on credit cards. I recently took a minute to look at the cards I have and whether I’ll keep them, the cards I want to get, and the cards that will see spending from me this year.
Cards I Plan to Get
AA Business Card for miles
The CitiBusiness® / AAdvantage® Platinum Select® World Mastercard® is a business card. I’ve never had it, so this card is at the top of my list, especially since American Airlines miles are the most valuable right now, and I’ve been redeeming them for ultra-luxury awards.
Read my full review of the CitiBusiness® / AAdvantage® Platinum Select® World MasterCard®
Citi Prestige for lounge access, benefits, and points
The Citi Prestige® Card comes with 40,000 bonus ThankYou Points after $4,000 in purchases made with your card in the first 3 months the account is open, $250 in airfare or airline fee credits per calendar year, access to Priority Pass lounges, 3x points per dollar on air travel and hotels, and a $450 annual fee.
Because I understand the benefits and will maximize them, I’ll get way more value than the annual fee. Right now I don’t have Priority Pass access, and I’ll lose AA lounge access soon when I cancel the AA Executive card, so I value those highly.
These ThankYou Points can be used for 1.33 cents each toward American Airlines flights or transferred to 12 types of airline miles with new airlines being added frequently.
Read my full review of the Citi Prestige® Card
United℠ Explorer Card again
I got the United℠ Explorer Card over two years ago and cancelled it around a year ago. I can get it again with the bonus because Chase’s rule for personal cards is that you are considered a new applicant if it has been 2+ years since you last got the bonus on the card.
United℠ Business Card
I have never had the United℠ Business Card.
Cards to Keep or Cancel
What cards I keep versus cancel won’t be particularly illuminating to you because whether you should keep or cancel a card is a math problem, and only you have your inputs.
The three-part test is:
- Is the annual fee zero? Keep it.
- Are you getting a retention bonus for keeping the card that is worth more than the annual fee? If so, keep the card. If not, go to step 3.
- Are the marginal benefits of holding the card larger than the annual fee. If so, keep it. If not, cancel it.
There is no substitute for doing the keep-cancel analysis yourself, but here are some trends I noted:
- Cards you use a lot will come out well in the keep-cancel analysis, and cards with a retention bonus will too.
- Airline cards do poorly because they don’t offer good category bonuses, and their 1x return on everyday spend.
- The more total money you spend on all your credit cards, the more annual fees you will be able to justify to maximize category bonuses. If you spend less money, the optimal number of cards to carry will be lower.
Which Cards I’ll Spend On
Much of my spending goes toward meeting minimum spending requirements. What’s leftover goes to category bonuses as much as possible. Where I’ll try to put extra spending in 2015:
- 5x rotating category on my Chase Freedom Flex℠
- 5x at office supply stores and on cellular phone, landline, internet and cable TV services each account anniversary year on my Chase Ink Business Cash® Credit Card
- 3x dining on my Citi Premier® Card
- 3x gas on my Citi Premier® Card
Your Strategy?
What cards are you eyeing in 2015? What card will get your non-bonused spending?
Just getting started in the world of points and miles? The Chase Sapphire Preferred is the best card for you to start with.
With a bonus of 60,000 points after $4,000 spend in the first 3 months, 5x points on travel booked through the Chase Travel Portal and 3x points on restaurants, streaming services, and online groceries (excluding Target, Walmart, and wholesale clubs), this card truly cannot be beat for getting started!
Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are the author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.
The comments section below is not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved, or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all questions are answered.
Scott, if had to choose between keeping an older existing US airways card that gave a 10k bonus on anniversary every year or canceling it to improve your chances of getting another 50k, which way would you lean?
I’m going to cancel my 10k a year anniversary one to improve my chances of getting the 50k. It’d take many years before 10k per year at $89 a year were the better deal.
Scott, if had to choose between keeping an older existing US airways card that gave a 10k bonus on anniversary every year or canceling it to improve your chances of getting another 50k, which way would you lean?
I’m going to cancel my 10k a year anniversary one to improve my chances of getting the 50k. It’d take many years before 10k per year at $89 a year were the better deal.
Hi,
how can you apply for two personal Chase cards? Usually they do not like to approve two personal ones in one application round.
I am due for applying for Sapphire and United as I canceled them more than two years ago.
Also how many personal cards do you have with Chase? I currently have three, Freedom, Southwest and IHG. I know I might convince them to give me more than four if I can move some credit around.
Mariana
Mariana
I reduced every card to a $5K limit don’t need it I pay my bill on Monday every week maybe that’s why Monday’s Sucks ..LOVE Chase and TOADed them every time I call (2x a year) and had 8 down to 6 now (4 personal,2 bus.). Had Ink plus canceled got anther Ink plus in 14 months and the 70K points(thanks Scott) .So Ink plus and BOLD too.
INKer for LIFE !!!!!!
I’ll get these two cards 91+ days apart. If you get the Sapphire Preferred, there’s no real reason to hold the Southwest.
Hi,
how can you apply for two personal Chase cards? Usually they do not like to approve two personal ones in one application round.
I am due for applying for Sapphire and United as I canceled them more than two years ago.
Also how many personal cards do you have with Chase? I currently have three, Freedom, Southwest and IHG. I know I might convince them to give me more than four if I can move some credit around.
Mariana
Mariana
I reduced every card to a $5K limit don’t need it I pay my bill on Monday every week maybe that’s why Monday’s Sucks ..LOVE Chase and TOADed them every time I call (2x a year) and had 8 down to 6 now (4 personal,2 bus.). Had Ink plus canceled got anther Ink plus in 14 months and the 70K points(thanks Scott) .So Ink plus and BOLD too.
INKer for LIFE !!!!!!
I’ll get these two cards 91+ days apart. If you get the Sapphire Preferred, there’s no real reason to hold the Southwest.
US Air MasterCard Just notified me that the no longer charge International transfer fee……..
https://milevalu.wpengine.com/us-airways-card-now-with-no-foreign-transaction-fees/
US Air MasterCard Just notified me that the no longer charge International transfer fee……..
https://milevalu.wpengine.com/us-airways-card-now-with-no-foreign-transaction-fees/
Did the Chase United increase its bonus to 50k already? I thought it was only at 30k right now. If not, do you have an idea of when it will go up to 50k?
Targeted offers of 50K for $2K spend and additional 5K for AU through the snail mail right now. Some reports of kiosks at ORD and EWR offering as well and people matching via Chase SM.
What FortyAcres said. They’ll match 30k offers to 50k by Secure Message.
I’ll take the United personal card and SM and see if they will give me a United Bus 50K card ..
Did the Chase United increase its bonus to 50k already? I thought it was only at 30k right now. If not, do you have an idea of when it will go up to 50k?
Targeted offers of 50K for $2K spend and additional 5K for AU through the snail mail right now. Some reports of kiosks at ORD and EWR offering as well and people matching via Chase SM.
What FortyAcres said. They’ll match 30k offers to 50k by Secure Message.
I’ll take the United personal card and SM and see if they will give me a United Bus 50K card ..
Can you keep multiple Alaska Airlines personal Visa open?
Yes
Can you keep multiple Alaska Airlines personal Visa open?
Yes
I started in this hobby last April and I went kind of crazy last year (11 cards, including 2 US Air cards: Getting my 2nd bonus in a couple weeks!). So this year I am focusing on which cards I want to cancel (mostly the airline cards), but especially holding onto and utilizing flexible currencies. I am eyeing the Chase Ink+ and Citi TY Premier. The big goal is to collect United Miles so my gf and I can get to Africa in biz class for the Fall (she’ll be going for the Chase United, which is why I asked about the 50k offer). I have thought about some of the Amex MR cards, especially the Everyday preferred, but not ready to pull the trigger on that yet. Maybe for next year.
I started in this hobby last April and I went kind of crazy last year (11 cards, including 2 US Air cards: Getting my 2nd bonus in a couple weeks!). So this year I am focusing on which cards I want to cancel (mostly the airline cards), but especially holding onto and utilizing flexible currencies. I am eyeing the Chase Ink+ and Citi TY Premier. The big goal is to collect United Miles so my gf and I can get to Africa in biz class for the Fall (she’ll be going for the Chase United, which is why I asked about the 50k offer). I have thought about some of the Amex MR cards, especially the Everyday preferred, but not ready to pull the trigger on that yet. Maybe for next year.
Scott, I’d suggest that there’s a fourth important step to the keep / cancel analysis. If any card has been assessed under the first three steps and is still a “keep”, then the final question is:
“Based on the issuers signup bonus rules, will keeping the card open preclude me from getting another bonus on the same card if I apply for it again in 12 or 24 months? And if so, do the net benefits of keeping the card over the next 12 or 24 months outweigh the value of the future signup bonus that I’m foregoing?”
For the long term player in this game, I would think this question supersedes all others — for instance, in your scenario the future value of the 45,000 signup bonus from Sapphire Preferred #2 almost certainly outweighed the value of the net benefits of keeping the card and earning points from ongoing spend over the following two years since you canceled, minus the $95 annual fees. For someone spending $50k per year on travel and dining on that card (100k points), the answer could be different. Similarly, a fee-free card might get canceled based on this fourth question.
Generally, the sooner one closes a card, the sooner one can get the same card again — certainly for Amex business cards, Citi cards (at least as their rules are written), Chase, and maybe Barclays. If we go by the logic that the vast majority of one’s spend should go towards meeting minimum spend requirements, then there’s almost never a net benefit to keeping a card open other than (perhaps) your longest-held card with each issuer for relationship and length of credit history purposes. Any thoughts?
Chase’s rule is 2 years since getting the bonus. Closing date is irrelevant.
AMEX’s rule is one bonus per personal card per lifetime. Closing date is irrelevant.
Citi’s rule is opaque. For the AA cards, it seems to be time since date opened. Closing date is irrelevant.
Barclaycard’s rule is opaque.
I think you make a good case if closing date matters, but for many cards it doesn’t.
Scott, I’d suggest that there’s a fourth important step to the keep / cancel analysis. If any card has been assessed under the first three steps and is still a “keep”, then the final question is:
“Based on the issuers signup bonus rules, will keeping the card open preclude me from getting another bonus on the same card if I apply for it again in 12 or 24 months? And if so, do the net benefits of keeping the card over the next 12 or 24 months outweigh the value of the future signup bonus that I’m foregoing?”
For the long term player in this game, I would think this question supersedes all others — for instance, in your scenario the future value of the 45,000 signup bonus from Sapphire Preferred #2 almost certainly outweighed the value of the net benefits of keeping the card and earning points from ongoing spend over the following two years since you canceled, minus the $95 annual fees. For someone spending $50k per year on travel and dining on that card (100k points), the answer could be different. Similarly, a fee-free card might get canceled based on this fourth question.
Generally, the sooner one closes a card, the sooner one can get the same card again — certainly for Amex business cards, Citi cards (at least as their rules are written), Chase, and maybe Barclays. If we go by the logic that the vast majority of one’s spend should go towards meeting minimum spend requirements, then there’s almost never a net benefit to keeping a card open other than (perhaps) your longest-held card with each issuer for relationship and length of credit history purposes. Any thoughts?
Chase’s rule is 2 years since getting the bonus. Closing date is irrelevant.
AMEX’s rule is one bonus per personal card per lifetime. Closing date is irrelevant.
Citi’s rule is opaque. For the AA cards, it seems to be time since date opened. Closing date is irrelevant.
Barclaycard’s rule is opaque.
I think you make a good case if closing date matters, but for many cards it doesn’t.
While AMEX personal is once per lifetime, AMEX business is churnable, but they purport to measure from when you last HAD the card, so on those it’s critical to close them sooner, so that you can get them again.
Scott,
AMEX rule only applies to personal cards, not business cards?
Thanks for the thoughts. Agreed with your point that for certain issues this doesn’t come into play, or not as much. On the other side of the conversation:
Amex business closing date is fully relevant.
Citi cards are explicit about closing date being relevant in their signup bonus T&Cs (closed for 18 months), if not in practice. I’d rather play within their rules and remove the risk that their IT enforcement catches up with their intentions, especially if it means foregoing a waived fee or 5k AA retention miles in return for 50k sooner down the line. The rule may very well may be enforced currently for some card products or people.
For Barclays, there are many data points of people being denied a card for having the same product open, but agreed that the rules are opaque and the closure period may not need be very long.
Anyway it’s worth keeping in mind during the keep / cancel consideration, based on the product and issuer.
Great summary of cards and point/miles.
But, what is your manufactured spend plan for these cards and the bonus catagories??
I’m planning on doing zero manufactured spending except maybe with Kiva to meet min spending requirements. Manufacturing spending is difficult because I spend a lot of time outside the US, and I don’t like keeping careful records of it or driving all around town.
Great summary of cards and point/miles.
But, what is your manufactured spend plan for these cards and the bonus catagories??
I just applied and was approved for the Citi Prestige (used your link)! I am very excited, mostly for the lounge benefits. To me, that is worth what the annual fee will boil down to (after the airline credit every year and global entry on year one). The fact that I will be able to come and go from the lounge in most airports I fly through, and can bring up to two guests, makes it worthwhile. Since I live near Philly I mostly fly USAir, and now American, so Admirals Club here I come!
Not sure of my travel plans after April (New Zealand and Fiji) but it will probably include a four day paid hotel stay so I am already seeing a wash on the annual fee for the year. *If you cannot tell that $450 fee was my only apprehension on this card.
Great! I think you’ll enjoy it as long as keep using the benefits.
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