- Centurion Member
- Posts: 3962
- Joined: Thu May 08, 2014 7:42 pm
- Location: United States
I've got another one. I will say that it's not inherently nonsense for average people, but it tends to be bad advice for the speaker and audience on credit forums where most people don't mind (or even embrace) some complexity to earn great rewards. I used to believe this one, but have seen it makes no sense for me (or most others here).
Some people like to compare Arrival+, Venture, QS, DoubleCash, and others by the annual fees and earn rates. They talk casually about putting $20k, $40k, $60k, $80k, etc. on one of those cards in a given year.
The inappropriate common advice in this case is:
"You only have to spend $X per year on Card Y to make up for the AF and even earn more than you would on Card Z." The implication is that credit geeks are going to be putting several tens of thousands a year on a Venture/Arrival+/something similar.
Those same people often have a few category cards, cobranded hotel or airline cards, and/or MR/UR/TY cards. Even if you have $100k of CC expenses a year (where the merchant doesn't surcharge, that is), how much spending is an Arrival+ actually going to get if you have 8 or 9 other, specialized cards? If your goal is to maximize rewards, it's going to sit there every time you can earn 3% cash with another card. If you have 10 cards, most of your spending can earn more than 3% cash!
There's nothing wrong with just wanting a signup bonus, a high CL, simplicity, a metal card, whatever...those can be valid reasons for getting a card. But the arguments about earning superior rewards on an ongoing basis just don't hold water for credit geeks.
I do know of one person who puts at least $100k a year on a Venture, but she's too overworked and busy to juggle a dozen cards or read about complicated travel programs.
And yes, I know the AFs can sometimes - but not always - be waived.
Keeping indefinitely: IHG, SchwabPlat, CSP, Discover, Freedom, ED, BCE, Hyatt
May close or PC: Prestige, Arrival, BrooksBros
AA Platinum converting into Costco
Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech
Letting new accounts cool off since May