American Express Membership Rewards - Which Card Would You Recommend Based On My Situation?

I have a 787 Experian Score, 783 Equifax, 791 TransUnion. I only have 2 cards. American Express Blue Cash and Best Buy store card. Balances on them are both zero. My amex has a limit of 34,000 and my BB Store card has a 10,000 limit. I am wanting a travel rewards type card to build up some kind of travel points. I will spend about 30,000 - 50,000 a year on the card. I will PIF every month but it wouldnt be bad to have the option to carry a balance. Our household income is 160,000. What card would you recommend? It would be great if I could change my Blue Cash to whatever card is recommended.

We do 1 big trip a year. We dont fly or go on trips often. We save up for 1 big one a year. Last year was 12 days in Jamaica. This year is 10 days in Hawaii, next year is 15 days in Europe. I am not a member of any miles or any type programs. I really just want to get my points from spending and then spend all the points on one big vacation a year.

Thanks

Starwood Amex. Starpoints are good at all of Starwood hotel brands (Westin, Sheraton, W, Le Meridien, etc). They also transfer at a 1:1.25 ratio (when done in increments of 20K, 20K Starpoints = 25K airline miles) to over a dozen airlines.

Hilton HHonors Surpass is a close second.

I think SPG is the most flexible program going.

At that amount of spending would you split rewards with any other card or just get the SPG?

At that amount of spending would you split rewards with any other card or just get the SPG?

I'm not a fan of splitting spend unless you have a specific goal in mind. You've got your plans set, if you have enough points for say, your hotel, and you want to shift your spend to an airline card (like Delta Reserve) for Delta status, then that makes sense. Otherwise, stick with one.

The beauty of the SPG card is you get the best of both worlds, flexible airline points (1.25 points per $, and you aren't locked into a single carrier), or great hotels.

I'd also look at the Schwab Visa (http://www.schwab.com/public/schwab/banking_lending/credit_card) card for those places that do not take Amex. 2% cash back and no Foreign exchange fee.

I think between SPG and Schwab you've got a killer combo. I'm sure others will weigh in with their preferences.

Agree with above. But note that if you are not a regular traveller, the utility you will get from points -- even with $30k-$50k/ year will be fairly limited.

Assuming $50k annual spend, and with sign-up bonuses etc, that's probably enough for 3-4 nights at a reasonably decent hotel with points, a week with cash+points. If you transfer to airline programme, that's almost enough for 2 economy round-trip tickets to europe, or one business-class ticket.

And after first year, without the sign-up, you're looking at 18 months+ for the same usage.

Since there are 1.5-2%% cash-back cards, that's $750-$1000/ year instead. For me, I'm terrible at budgeting: cash-back just gets spent, as if I was earning a bit more, but not on anything special, so points lead to more 'memorable' redemption opportunities. But unless the OP is willing to save for 2-3 years, and then blow the lot on a couple of business-class airline tickets, not sure it's necessarily worth it.

tb

PS my post was in response to first answer primarily: agree with Scwab visa card suggestion.

Is it possible to convert blue cash to spg?

Is it possible to convert blue cash to spg?

Not that I'm aware of. I've been told a couple of times when I've called that a Blue product can only be converted to another Blue product. The last rep I spoke to (last month) said that they can't convert a "no fee" card to a "fee based" card.

I'd try calling in and asking for a "product conversion" before applying for a new card. You might get an empowered rep. Let us know...

Since there are 1.5-2%% cash-back cards, that's $750-$1000/ year instead. For me, I'm terrible at budgeting: cash-back just gets spent, as if I was earning a bit more, but not on anything special, so points lead to more 'memorable' redemption opportunities.

I agree on all points. I just cashed in 40K Starpoints for a room for 4 nights at the Disney Dolphin hotel (CAT4 - 10K starpoints/night). $40K in spend got me 40K Starpoints, which got me a free room. Room rate for when I want to go is $328/night. Without starpoints, that same room would have cost me $1,416 ($1,328 plus $104 in taxes).

Same spend on a 2% cash back card would have gotten me $800.

But, that 2% card should be in your wallet, for overseas travel (amex's 2.7% forex fee is nuts), and for those places that don't accept Amex.

So the ideal thing for me to do is...

Call up and try to get a conversion.
If I cannot get a conversion, apply for the SPG and the Schwab card.
Keep the best buy card.

That leaves me with 4 cards. Thats not too many?

So the ideal thing for me to do is...

Call up and try to get a conversion.
If I cannot get a conversion, apply for the SPG and the Schwab card.
Keep the best buy card.

That leaves me with 4 cards. Thats not too many?

I'd keep the blue too (I'm assuming they won't do a conversion). In this nutty credit environment, I'd never cancel a "no fee" card. Diversification is key.

Right keep the blue, but 4 cards is not too many?

Sorry for all the questions!

Right keep the blue, but 4 cards is not too many?

Sorry for all the questions!

I've got over 30 cards, but maybe I'm the wrong person to ask. :)

And that doesnt hurt your score?

And that doesnt hurt your score?

I didn't apply for them all at once. :)

My oldest card is Amex, it dates back to May 1986. I've added between 3-4 a year over time. My scores are in the high 700's (according to myfico.com).

At that amount of spending would you split rewards with any other card or just get the SPG?
Welcome to FT!!!

If you do decide to split, my recommendation would be to split between the Starwood AMEX already mentioned and the "Regular" Hilton AMEX that comes without an annual fee. (not the Surpass card that comes with a fee!)

I would use the Starwood card for virtually all charges except those that earn 6 Hilton Honors points per 1$. (can't remember all of them but I use the card for gas, groceries, drugstores, phone, internet and Hilton Hotels at 6 points per 1$).

I must say that my annual spend is much higher than yours so I get a couple of free nights in both programs just by using the card (and I stay at the hotels too).

One further issue to consider is if you get enough coverage with just an AMEX card. Some places don't take AMEX and I have other cards for that reason. If you however have been able to live without a VISA/MC/DC/Discover up until now that probably isn't an issue. You will however find that most people on FT will have several cards to get sign up bonuses and also work different promotions. I don't churn (the term used for those that sign up and cancel cards just to get the sign up bonuses) because I am too worried about my credit but I do have several cards that I have had for a long time.

I honestly dont know what my Annual spend will be this time. Mine was 43,000 last year but I did no bills on the card. This year, I plan to put all the bills on the card as well to increase annual spend. Also, all my wifes spend was on our debit card. She did not have the amex. I added her as an AU 3 weeks ago.

We are currently looking for her a card as well. She had a KD this year that has since been paid. She had no clue about it, it was a mixup with an old apartment complex from 2 years ago. We checked her credit and found it. They had not tried to contact her at all since it happened. It was only 100 dollars. She would have paid it if she had known about it. So therefore, her credit is bad. She has no loans, open cards, or anything on her credit (except an AU on my Amex). So we are hoping to get her a prime card but I doubt we can. Her scores are all three about 675. Any ideas?

I honestly dont know what my Annual spend will be this time. Mine was 43,000 last year but I did no bills on the card. This year, I plan to put all the bills on the card as well to increase annual spend. Also, all my wifes spend was on our debit card. She did not have the amex. I added her as an AU 3 weeks ago.

We are currently looking for her a card as well. She had a KD this year that has since been paid. She had no clue about it, it was a mixup with an old apartment complex from 2 years ago. We checked her credit and found it. They had not tried to contact her at all since it happened. It was only 100 dollars. She would have paid it if she had known about it. So therefore, her credit is bad. She has no loans, open cards, or anything on her credit (except an AU on my Amex). So we are hoping to get her a prime card but I doubt we can. Her scores are all three about 675. Any ideas?

Head over to creditboards.com and take a look at their newbie primers. She should be able to get those deleted off her reports. There are a huge number of tactics to attempt and gain removal of "baddies".

Any cards you recommend if she cant?

Not really. You'll need north of 720 for any Amex card.

National credit unions are not going to like the derogs.

I'd strongly suggest cleaning up her reports before applying for anything. You can first take a goodwill approach (politely ask the creditor to remove). If that doesn't work, remove old addresses from your file, then dispute the bad tradeline as "not mine".

With some persistence you should be able to get it removed. Read up on creditboards.com

I would use the Starwood card for virtually all charges except those that earn 6 Hilton Honors points per 1$. (can't remember all of them but I use the card for gas, groceries, drugstores, phone, internet and Hilton Hotels at 6 points per 1$).

I must say that my annual spend is much higher than yours so I get a couple of free nights in both programs just by using the card (and I stay at the hotels too).


Whats the benefit of doing that over just spending all on SPG and getting all the free rooms there? Is it coverage?

Is it true that if you have Hilton amex and SPG you can transfer SPG points to AA then to Hilton honors points to maximize one cards points? If that is true, would the sensible thing to do be to add (yet another) card to my profile? I have blue cash, schwab 2% cash back, penfed plat visa, bb store card, and SPG.

Whats the benefit of doing that over just spending all on SPG and getting all the free rooms there? Is it coverage?

Coverage is only part of the reason. Most FT members like the ability to redeem in numerous different programs because there just aren't always hotels from one chain in the destination you might want to go.

The other reason is as follows and I will try to explain this as best I can without getting too confusing. (Others might do a better job at this because I have seem comparisons in other threads that look like PHD disertations!)

To get the top Category hotel with Hilton (excluding some W=A hotels) you need 40,000 Hilton Honors points. With the credit card I mentioned you can earn 6 points per $1 on certain charge categories. This would mean that you would need to spend approx. $6,667 in those 6 point categories to get a free night in a Category 6 hotel. As a comparison if you used the Starwood card to charge in those same categories you would only earn 1 SPG point......so if we are comparing that to the $6,667 you need with Hilton it would mean that you would earn 6,667 Starwood points for the same amount of money spent. For 6,667 points you really do not get much with SPG...just a Cat. 3 costs 7,000 points.

Charges in categories that only earn 3 HH points are IMHO better put on the SW card due to the flexibility of the card and the option of getting a 25% bonus if you transfer SPG points to an airline program.

Hope I didn't confuse you too much but there are tons of threads on this very topic here on FT. You might want to search the forums and spend the entire night reading up on the comparisons others have done. :D

Coverage is only part of the reason. Most FT members like the ability to redeem in numerous different programs because there just aren't always hotels from one chain in the destination you might want to go.

The other reason is as follows and I will try to explain this as best I can without getting too confusing. (Others might do a better job at this because I have seem comparisons in other threads that look like PHD disertations!)

To get the top Category hotel with Hilton (excluding some W=A hotels) you need 40,000 Hilton Honors points. With the credit card I mentioned you can earn 6 points per $1 on certain charge categories. This would mean that you would need to spend approx. $6,667 in those 6 point categories to get a free night in a Category 6 hotel. As a comparison if you used the Starwood card to charge in those same categories you would only earn 1 SPG point......so if we are comparing that to the $6,667 you need with Hilton it would mean that you would earn 6,667 Starwood points for the same amount of money spent. For 6,667 points you really do not get much with SPG...just a Cat. 3 costs 7,000 points.

Charges in categories that only earn 3 HH points are IMHO better put on the SW card due to the flexibility of the card and the option of getting a 25% bonus if you transfer SPG points to an airline program.

Hope I didn't confuse you too much but there are tons of threads on this very topic here on FT. You might want to search the forums and spend the entire night reading up on the comparisons others have done. :D

Oh man, looks like I will be applying for my 4th card in 2 days.

...if you have Hilton amex and SPG you can transfer SPG points to AA then to Hilton honors points to maximize one cards points?...

It is true that Starpoints can be transferred to AA, and it is true that AAdvantage Miles can be transferred to Hilton HHonors, but the arithmetic isn't favorable compared to simply using an HHonors American Express card to make the purchases.



Charge $20,000 on SPG Amex, earn 20,000 Starpoints
Transfer 20,000 Starpoints to 25,000 AAdvantage Miles
Transfer 25,000 AAdvantage Miles to 50,000 HHonors Points (pay $30 fee)


Effectively, you have charged $20,000 to earn 50,000 HHonors points, but you would have earned at least 60,000 points by charging on the HHonors American Express card, and saved the transfer fee.

This has value if you have an accumulation of Starpoints and need extra HHonors points for a specific reward, but it's not the best strategy otherwise. (AA transfers are limited 150,000 miles per year.)

Hmmm...Well maybe it is a better idea not to apply for the HHonors now and wait and let these 3 mature then? I got the SPG, the Schwab 2% cash back card and the Penfed 5% gas cashback card. Was looking at adding the HHonors card to have all basis covered but should I wait on that one?

SPG in this case would be main card
Schwab for Forex fees and solid 2% cashback
Penfed 5% for use on gas
HHonors would be for the 6 point categories

Smart? or hold off on Hhonors?

I'd wait at least 6 months before applying for another Amex product.

I'd wait at least 6 months before applying for another Amex product.
Agree 100% I was about to post this but skofarrell beat me to it. Don't overdo the applications if your credit score is very important to you as you mentioned in your OP.

Hmmm...Well maybe it is a better idea not to apply for the HHonors now and wait and let these 3 mature then? I got the SPG, the Schwab 2% cash back card and the Penfed 5% gas cashback card. Was looking at adding the HHonors card to have all basis covered but should I wait on that one?

SPG in this case would be main card
Schwab for Forex fees and solid 2% cashback
Penfed 5% for use on gas
HHonors would be for the 6 point categories

Smart? or hold off on Hhonors?


I think the 3 cards you list are very good.
You may also add Citi AMEX Platinum to use for 2 years. (free Priority Pass, free Citi Identity service)
Although this is also AMEX card it is issued by Citi thus you should be able to apply with AMEX starwood in the same time.

I suggest you submit all applications in the "same day".

Based on your spending, you can also get easy 25,000 SPG points bonus for below link:

https://www201.americanexpress.com/cards/Applyfservlet?csi=6/19539/b/226&PID=1&BUID=CCG&PSKU=SPG&CRTV=A000005E8VSPG&EAID=ZXePwMMENmg-Mfa7QuGNYeyq7TIxG7kSEg
Earn 10,000 Starpoints® with your first purchase1 - enough for up to 3 free nights at a Category 1 or 2 hotel.2
Plus - earn an additional 15,000 Starpoints when you spend $15,000 in 6 months.

BTW, I also agree with above for further applications try wait at least another 6 months.

Do you know of a way to get my CL from my Blue Cash moved to my SPG? I know they wont do it directly, but can you ask for a reduction then ask for a CLI on the other to take its place? Or is that just asking to get slashed like the recent things you read about amex?

Amex (and many others) are making it difficult-impossible to move credit lines around in today's credit market. You might want to check out fatwallet for more datapoints on how Amex is handling this type of request these days.

Personally hotel cards don't do much for me. My vacations tend to be Vegas or other places where I can get a dirt cheap room. I'm focusing on TYP with my 3/5 Citi Platinum Amex, at least until the annual fee hits, redeemed for gift cards at $100 for 10K. Restaurants go on my Chase Professional with 3% cash back. I will be exploiting the US Bank offers for my dormant (yet new) FlexPerks cards.

I've been doing 10-12 applications once a year, all the same day. I had been looking for 0% money which is getting harder to come by. My score does tank short term, but comes back up pretty quick. November will be my next round, so I will look to see what the best rewards are for my situation at that point, plus whatever other juicy signup offers are out there.

Do you know of a way to get my CL from my Blue Cash moved to my SPG? I know they wont do it directly, but can you ask for a reduction then ask for a CLI on the other to take its place? Or is that just
asking to get slashed like the recent things you read about amex?

reallocating limits was available until Oct 2008. It not available now. Keep the BC card in the drawer, when things improve, you'll be able to shift things around. sit tight.

reallocating limits was available until Oct 2008. It not available now. Keep the BC card in the drawer, when things improve, you'll be able to shift things around. sit tight.

Sounds good.

The Hilton Surpass card gets you Hilton Gold the first year. With a 40k spend, you get Diamond and enough points for 6 nights in a Cat 6 Hotel every year.

Why is the SPG Amex better in this situation?

The Hilton Surpass card gets you Hilton Gold the first year. With a 40k spend, you get Diamond and enough points for 6 nights in a Cat 6 Hotel every year.

Why is the SPG Amex better in this situation?

I think the SPG Amex is the most flexible card out there because it offers Starwood hotel nights (as the Hilton card does for Hilton), but they also offer the ability to transfer points to over 30 airlines, most at very favorable rates (20K starpoints points = 25K miles). UA and CO are the exceptions.

So you have the ability to keep your points "centrally" with SPG, use them for hotels if you need to, or use them for tickets with practically any airline.

But, if you're a road warrior that is totally in bed with Hilton, it probably isn't better. Diamond status for $40K spend is pretty alluring. Depends on if you only want hotel rooms, or if you want the flexibility to get rooms or flights (or both).

All I know is, I waited to get my first credit card much later in life than I would think is usual. I always paid cash before that. Never believed in plastic. Then I got an Amex in 2004. Maybe used it 3 times a year. Last year I started using my Blue Cash more and got some decent Cash back. I still did not even use it for everyday stuff like paying bills like I should have. Based on my budgeting I should have put about 65-70k through the card and only put 35k.

Now with all of these cards and promotions and points I am not going to know which card to use when, and how to get which tier, and how to even redeem all the different programs.

Gets confusing!

Welcome to the Jungle. :)

Thanks for all the info. My profile is pretty close to the OPs, so i just signed up for SPG and Schwab today.

Now i just need to get Amex to raise my credit limit on the SPG card.