Other Credit Card Programs - Recommendation for new Airline Credit Card

I am looking for credit card to accumulate miles. I fly to Europe (UK and Germany) and Hong Kong at least once a year and South Africa every 6 months. I generally fly BA or Lufthansa to Europe and Cathy Pacific or Singapore Air to Asia. And to South Africa I usually fly Delta to New York and then South African to Johannesburg.

What card would be the most advantageous for me?

Where do your trips originate? Do you travel in economy or business on the international trips? Are you only interested in award tickets, or also using miles to upgrade paid tickets? Do you have elite status on any airlines? Approximately how much will you spend annually on a credit card?

Where do your trips originate? Do you travel in economy or business on the international trips? Are you only interested in award tickets, or also using miles to upgrade paid tickets? Do you have elite status on any airlines? Approximately how much will you spend annually on a credit card?

They generally start at SFO. I usually travel business class (depends on how far ahead I make my bookings). I am interested in using miles to upgrade as well as award tickets. I am SPG Platinum but no airline status. I spend about $50k-$75k a year.

...SPG Platinum...

Do you already have the SPG credit card?

On trips where you might use BA do you typically fly alone or with a companion? I ask because the Chase BA VISA has just added a companion feature which is very valuable if you need two identical award tickets (on BA metal only), but worthless otherwise.

Do you already have the SPG credit card?

On trips where you might use BA do you typically fly alone or with a companion? I ask because the Chase BA VISA has just added a companion feature which is very valuable if you need two identical award tickets (on BA metal only), but worthless otherwise.

I typically fly alone. I had the SPG AMEX credit card but they gave me a $2k credit limit and at that time I was spending around $200k a year on my Merrill+ card...so I canceled the card right after I got it.

Also would it be bad for my credit score if a closed my Merill+ card? I have had it open for about 2 years now...it is far from my oldest line of credit but I did use it as a primary card for quite a while.

Merrill+ VISA carries no annual fee, what's the motivation to close it?

If your Merrill+ is still the "Platinum Plus" version I would keep it because the credit limit is reported to credit bureaux and (all other things equal) having more available credit improves your FICO score by lowering your "credit utilization". If your account has been changed to VISA "Signature" the credit limit is probably not reported, and cancelling it should be neutral, but there's also no harm keeping it because the credit limit is concealed from other card issuers.

At the time you applied for the SPG card did you have other cards issued by American Express?

Merrill+ VISA carries no annual fee, what's the motivation to close it?

If your Merrill+ is still the "Platinum Plus" version I would keep it because the credit limit is reported to credit bureaux and (all other things equal) having more available credit improves your FICO score by lowering your "credit utilization". If your account has been changed to VISA "Signature" the credit limit is probably not reported, and cancelling it should be neutral, but there's also no harm keeping it because the credit limit is concealed from other card issuers.

At the time you applied for the SPG card did you have other cards issued by American Express?

It is the Visa Signature now...I am just worried I have to many credit cards I have 7 right now including a couple of store credit cards.

I believe that I had my BofA Accolades AMEX but that probably does not count. I did have a Gold AMEX 15 years ago when no one would take them.

I think you should consider this AMEX Premier Rewards Gold charge card. It gives 3X MR points for Airfare purchases, 2X for everyday spend purchases and 1X for all other purchases. I realize that you had been granted only 2K for SPG AMEX. But since this is a charge card, allowed limit should grow with general spend pattern.

Here is a link from another thread in AMEX forum that gives 10K signup bonus.

https://www201.americanexpress.com/cards/Applyfservlet?csi=78/36715/b/98

Here is a link to discussion about the new American Express Premier Rewards Gold card mentioned by jeelele...

http://www.flyertalk.com/forum/american-express-membership-rewards/1004031-new-premier-rewards-gold-card.html

Here is a better application link with 15,000 point bonus...

https://www201.americanexpress.com/cards/Applyfservlet?csi=78/22108/b/97

...worried I have too many credit cards

I don't think there is cause for concern from a credit rating perspective, but if you have cards that you know you will never use, such as the store cards, close 'em.

Overnight my thinking about the Chase BA VISA has changed. Even though you are unlikely to benefit from the companion voucher I think the newly announced bonus will be too attractive to pass...

http://www.flyertalk.com/forum/milesbuzz/1013709-100-000-miles-new-ba-chase-visa.html

However, I also have some concern that BA and Chase will flood the North American market with BAEC miles. While these can be redeemed on other airlines, including AA, it seems probable that most will be redeemed for transatlantic travel and BA award availability may become very tight after the first quarter of 2010.

I think this makes it all the more important to accumulate miles through a flexible program such as Starwood Preferred Guest or Membership Rewards.

That AMEX does look tempting but after paying $175 I am not sure that the math works out if I am only spending $50k a year. That BA card does look quite good...I might be leaning that way.

...paying $175 I am not sure that the math works out if I am only spending $50k a year....

It seems like a low risk proposition...

Let's say you spend $30,000 on the Amex Premier card, and that you average 1.5 points per dollar because you use it when purchasing airfare, groceries and gasoline as well as some general spending. This would generate 45,000 points plus the 15,000 point threshold bonus. That's 60,000 points per year which should easily be worth $1,200+ if transferred to an airline program and redeemed for intercontinetal business class air travel.

In any event, the annual fee is waived the first year to provide an opportunity to see how the numbers actually work with your spending pattern, other cards, and other sources of miles (e.g. flying, online shopping portal). Plus you'll have the 15,000 point new account bonus.

It seems like a low risk proposition...

Let's say you spend $30,000 on the Amex Premier card, and that you average 1.5 points per dollar because you use it when purchasing airfare, groceries and gasoline as well as some general spending. This would generate 45,000 points plus the 15,000 point threshold bonus. That's 60,000 points per year which should easily be worth $1,200+ if transferred to an airline program and redeemed for intercontinetal business class air travel.

In any event, the annual fee is waived the first year to provide an opportunity to see how the numbers actually work with your spending pattern, other cards, and other sources of miles (e.g. flying, online shopping portal). Plus you'll have the 15,000 point new account bonus.

As a charge card will it reflect on my credit score as a new line of credit? I have a DC card and I do not believe that they report.

As a charge card will it reflect on my credit score as a new line of credit? I have a DC card and I do not believe that they report.

Unlike Diners, American Express does report personal charge cards. No limit will be reported, but the closing balance will show as a liability. This will have some adverse affect on the credit utilization component of the score, but some credit bureaux will use your highest reported balance as if it were a limit.

I don't think there is any way to precisely calculate the affect on your FICO score, but unless you are applying for a mortgage soon I wouldn't give this much weight.

The Chase BA VISA card is a VISA Signature product, and it will be reported in the same way because there is "no preset limit".

I have a DC card...

Ah, then I understand why Merrill+ is extraneous, unless you would spend $50,000 to reach Level +2 and claim an airline club membership. I still wouldn't be in a hurry to close it because the card is refreshed each January. Who knows, they might actually improve it this year :rolleyes: .

Ah, then I understand why Merrill+ is extraneous, unless you would spend $50,000 to reach Level +2 and claim an airline club membership. I still wouldn't be in a hurry to close it because the card is refreshed each January. Who knows, they might actually improve it this year :rolleyes: .

It is my understanding that they removed the airline club membership.

It is my understanding that they removed the airline club membership.

Perhaps not...

http://www.flyertalk.com/forum/12397382-post9.html

Unlike Diners, American Express does report personal charge cards. No limit will be reported, but the closing balance will show as a liability. This will have some adverse affect on the credit utilization component of the score, but some credit bureaux will use your highest reported balance as if it were a limit.

I don't think there is any way to precisely calculate the affect on your FICO score, but unless you are applying for a mortgage soon I wouldn't give this much weight.

The Chase BA VISA card is a VISA Signature product, and it will be reported in the same way because there is "no preset limit".

Not exactly correct. Charge cards are no included in utilization for FICO purposes.

How about this (http://www.mychasecreditcards.com/britishairways/hp_postpin) 100,000 mile credit card offer from British Air? Plus earn 2.5 BA Miles for every $1 spent on British Airways flights, land products and vacation packages, arn 1.25 BA Miles for every $1 spent on everyday purchases. See this flyertalk discussion (http://www.flyertalk.com/forum/milesbuzz/1013709-100-000-miles-new-ba-chase-visa.html).

Charge cards are no included in utilization for FICO purposes.

Thank you, I see this has changed. Current FICO scoring models exclude charge cards or other accounts listed as open from the utilization, even though previous versions did include them.

http://www.bankrate.com/finance/credit-cards/are-charge-cards-bad-for-credit-scores.aspx