FlyerTalk Forums - Who's done the calculation?

Quote:

Originally Posted by happychic (Post 33244816)

I actually didn't say that the cost of CSR is $550, you did :)

But even taking the existing AF into account, with one AU, the total fee for one year of holding CSR is $525. Using the existing $300 credit on groceries, the effective fee can be $225.

With the CSP being $95 AF (and no AU fee), the difference between CSR and CSP is $130. If you take into account CSP gives 20k more UR in SUB than the CSR, that is an extra $250. This is a total of $380 in the first year a CSP card holder will save in AF and SUB.

As far as redemption goes, using PYB, a CSR card holder can redeem each point for 1.5cent. Since a CSP holder can redeem each point for 1.25cent, this is a difference of 0.25cent (not 25% as you pointed out, but 20%).

On dining and travel:
CSR: charge $1 = 3 points = 4.5cents PYB
CSP: charge $1 = 2 points = 2.5cents PYB

This is a difference of 2cents

$380 / 2cents = $19000

One will have to charge $19000 on dining and groceries before the end of Sept (when the existing PYB categories will end) to make the CSR fee worth its while for a first year card holder. This is a lot of money committed to dining out and groceries. Not to mention, there are several cards with lower or no AF that will give great or even better returns on dining and groceries.

After Sept, the PYB categories will end. It is hard to tell at this moment if it will be extended again or if there will be other categories that will be as lucrative. If one will continue to spend thousands on dining and travel, sure, I can see that the CSR being worth its while.

It's really hard to do the math for everyone as everybody's usage pattern is different. To each his own. For my household, these are the numbers I ran with in my head and decided that I'd much rather sign up for the CSP than the CSR.

I am curious - how do you figure that your CSR that makes it so much more valuable to you compared to CSP? I wonder if I am missing something. The appeal of CSR is truly lost on me.

And now we're getting closer to math! Keep in mind that based off of point returns alone, it requires $3,800 of bonus spend at a 2.5% return to break even on the CSP's $95 AF. Meanwhile, about $3,335 at 4.5% will break even at the CSRs $150 effective AF. This is mostly what originated my comment of not believing the CSP works for most people. I believe your math of having to spend $19,000 to get almost double the return isn't telling the full story.

I suppose if you need AUs, the CSP has an advantage. My SO using the CFF and CFU has been sufficient for her to earn and combine points with me, eliminating the need for an AU. I also will give you that if CSR raises its AF, and adds no new benefits, that creates a shift. Then it would take $5,560 in spend at 4.5% to "break even". My Lyft rides at an effective 15% also add up quickly. Another potential use of CSP is if you really don't spend enough to "break even" but utilize the travel insurances. For $95, that's a solid package. Primary rental car insurance is tough to find. However, again, the CSR offers a bit better protection there.