Chase Ultimate Rewards - Newbie in Austin: Chase Sapphire Preferred or ???

Hello! I'm currently using a Discover card for the cash back (doing all my spending on the card and paying it off each month), but I'm now interested in switching to something with travel rewards. I have no specific goals in mind other than some vague notion that I'd like to accumulate miles that I can use to upgrade to business or first class for international vacations. From what I've gathered so far, it appears that the Chase Sapphire Preferred and the AMEX SPG are the two cards recommended most often for someone in my position, both for their signup bonuses and program flexibility. Is this correct?

I currently live near AUS, which seems to be best serviced by United and Southwest. So with that in mind, I thought that the Sapphire Preferred would be my best choice since I can transfer points to both of those airlines 1:1. Plus, a large part of our normal spending is dining out, so we could really take advantage of the Sapphire Preferred's double points for spending in that category.

On the other hand, the AMEX SPG program seems to have a lot more options than Chase UR... with the added advantage of being able to transfer to AA. I have a very modest amount of AA miles already (<13,000), but that doesn't really seem significant enough to choose the AMEX SPG just so I can continue to bank AA miles, right?

So am I right to lean towards the Sapphire Preferred? Is there some other card that I should consider as well?

Hey satori101,

What kind of usage patterns do you use? What about categories? ie something like this: Groceries $300/month. Gas: $200/month, etc.

You don't currently have a goal in mind other than wanting points instead of cash. So it's important to start with your usage first. Maybe, for example, your usage may better suit you for a fee-free card such as a Chase Freedom. If that's the case, you could just hold your Chase URs until you need to transfer them to United or Southwest in the future. Any friend with an Ink Bold or Sapphire Preferred could help you out with that.

You are right that a lot of people use Amex SPG cards as an all-around 1.25% mile card. Do most merchants that you spend at take Amex though?

Hi Centrifuge. We average around $2500/month. Ballpark split... $850 grocery, $700 wining/dining, $600 recurring bills, $150 gas, with the remaining going to misc.

I rarely use the Amex I currently have, but it does appear that it's accepted almost everywhere we go.

First, it is extremely difficult to use points to upgrade on international flights. Usually you must have purchased a ticket that is in a higher fare class than the cheapest economy. Upgrades mostly go to the airline's elite fliers, with upgrade certificates based on the amount they fly.

The best way to get international premium travel is with points awards. The normal level is 100K points per ticket, assuming you can find availability. Some airlines have reduced point levels in the "off-season."

As far as points go, Chase Sapphire vs. Amex Preferred Rewards Gold:
1) Fee after 1st year, $175 Amex vs. $95 Chase
2) Foreign transaction fee, 2.7% Amex vs. 0% Chase
3) Signup bonus, currently 40K Chase vs. 25K Amex
4) Usage bonus, Amex 15K points if you spend $30K in a year; Chase 7% on all points. (With Amex you can get the bonus even if you don't keep the card past the fee-free year; I think with Chase you have to keep the card and pay the fee.)
5) Category bonuses: Amex 3x airfare, 2x gas/groceries; Chase 2x travel and restaurants
6) Transfer partners: Chase the main ones are United, Korean Air, and Hyatt; Amex has Delta and quite a few more airlines.

I'm not that familar with Amex SPG. I do know they transfer to AA, and they give a 25% bonus on transfers if you redeem in blocks of 20K (i.e. 25K miles for 20K points).

My guess is that your best approach for international travel is to try to get a combination of signup bonuses and earned points, and try to get at least 100K in as many accounts as you can to redeem for an international business class ticket. I gather you are married; don't be shy about getting cards in your wife's name to get the signup bonuses.

Don't ignore the Citibank Amex cards. With the right approach, you can get both the Amex and Visa and get 100K signup bonus for each of you. (Search for "Two-Browser Trick.")

Don't discount AA, I lived in Austin for a few years and used SWA domestically and AA for international. I may be biased, but I preferred to connect in Dallas as opposed to heading to Houston. I'm fairly certain the SPG only transfers to United at a 1:2 ratio, someone correct me if that is inaccurate. I agree w/ redtop43 that your best bet is to just redeem 100k for an international award as opposed to trying to upgrade w/ miles.

Austin is in a unique position in that you can choose SWA (nonstop), AA and United (w/ a 45 min connecting flight) so my advice is to start stacking miles in each program and see where that gets you as opposed to concentrating on category bonuses. One thing I did prefer about AA out of AUS was that I was never on an RJ.

You could do sapphire preferred now and then chase freedom in a few months, those cards together can earn alot of chase points from normal spend. With that combo I rarely get only 1 point/$, anything not bonused you can buy gift cards for.

Some good advice above, but, IMHO, dear OP you are thinking too much. :D

Apply for Chase Sapphire Preferred for bonus, do the same with a Chase INK Bold for even better bonus and you will have enough for an international trip. Get an SPG personal and biz too while you are at it if you can meet the spend. Keep an eye out for 30K SPG bonus offers which come around from time to time.

The bonuses are where the big benefits are. Average guy will take a long, long time to spend enough to fly free while he (or she) can quickly get enough bonuses to do some good.

I do not worry about annual fees after first year free offers 'cause I don't pay 'em. Only annual fee I pay is for SPG.

Good luck. APPLY FOR SOMETHING RIGHT NOW! @:-)

Thanks for the very good advice, all. One thing I should have noted is that I'm buying a house at the end of the year. I'd like a new card now so I can start racking up points on the extra spend we'll be doing ahead of the move. Applying for multiple cards however won't be an option until after we close on the house... too much credit impact otherwise.

Thanks for the very good advice, all. One thing I should have noted is that I'm buying a house at the end of the year. I'd like a new card now so I can start racking up points on the extra spend we'll be doing ahead of the move. Applying for multiple cards however won't be an option until after we close on the house... too much credit impact otherwise.

If that's the case go with one personal and one biz from chase or amex. You'll get 2 bonuses and MAYBE 1 inquiry, most likely 2 but only 1 new account will show up on your credit report. Good luck!

My advice as mentioned above, go for the Sapphire Preferred and Ink Bold.

If that's the case go with one personal and one biz from chase or amex. You'll get 2 bonuses and MAYBE 1 inquiry, most likely 2 but only 1 new account will show up on your credit report. Good luck!

My advice as mentioned above, go for the Sapphire Preferred and Ink Bold.

I second the fact that if you are comfortable with getting 2 cards (and possibly only 1 inquiry) that you should go for the Chase Sapphire and the Chase Ink Bold at the same time. Only issue might be making the minimum spend, but there are plenty of ways to get creative with it and really rack up some miles in the process.

If you are looking for a breakdown between the Chase Sapphire Preferred and the Amex SPG, this post might be helpful (http://www.extrapackofpeanuts.com/credit-card-showdown-chase-sapphire-preferred-vs-american-express-starwood-preferred-guest/).

But for your situation, I'd definitely be leaning towards the Sapphire Preferred over the SPG.