2019 State of the Wallet Address

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I tend to do a lot of my personal financial reviews at the beginning of the year – preparing my taxes, checking my retirement investments, managing recurring bills (cable, cell phone, etc.), and looking at my open credit cards. While I’m sure you all want to hear about my home office deduction, my 1099-INTs, and the like…I’ll just keep this focused on the credit cards. 

I broke down my analysis into three sections:

  1. Open Cards I am Keeping
  2. Open Cards I am Closing/Converting
  3. Cards I am Considering

There are so many fantastic products available to us these days and with every company competing for market share there is a lot of overlap among products.  Each reader has his/her preferred airlines, hotels, and lifestyle needs and for me there are a few important items to note. First, I live in a secondary market (Richmond, Va), so our airport has no lounges, and I have no airline loyalty.  Because of this, co-branded airlines cards don’t have as much value as they would for someone consistently flying American Airlines out of Charlotte, for example. Second, I value transferable points above all else and look to maximize value in that way as opposed to maximizing cash back.  Third, diversification is important, as to allow for more options when it comes time to book award travel.

Open Cards I am Keeping

American Express Gold – In its revamped form, this is a recent addition to my wallet.  With its 4x dining and 4x grocery (up to $25k) per year, it makes the short list.  To add icing on the cake, the airline ($100) and dining credits ($120) take quite a bite out of the $250 annual fee. While the card also offers 3x on airfare and 1x on everything else, this card doesn’t see action in those areas

American Express Platinum – I recently wrote an article on why this card is so valuable to me.  It simply comes down to the fact that while I don’t do a lot of purchasing on the card (aside from airfare at 5x), the benefits offered by American Express make the $550 annual fee seem insignificant.

American Express Blue Business Plus – With no annual fee and 2x on all purchases up to $50k per year, there is nothing not to love about this card

American Express Bonvoy Brilliant – This is the odd one out on my “keep” list.  The earn rates aren’t competitive, it has a high fee (albeit with some decent perks), and I think the name is stupid, but this card performs two very important duties for me.  First, I do enjoy SPG Marriott Bonvoy points as they offer access to unique transfer partners with an amazing array of award chart sweet spots.  The second thing this card provides is a nice path to Platinum Elite status.  By spending $75k the cardholder obtains that status for the remainder of the year and for the next calendar year.  While I don’t stay in hotels as often as most, it is nice to have that in my back pocket. This card may be jettisoned if Marriott continues to water down the statuses and have inconsistent delivery of benefits from their hotels.

Chase Ink Plus – As long as Chase continues to keep this card “active” it’ll have a home in my wallet.  Offering 5x on phone, cable, internet, and office supply stores up to $50k per year, it is easy to justify the $95 fee

Chase Ink Cash – Ink Cash matches the Ink Plus in categories and while it does have a lower cap at $25k per year, there is no fee, making this card a no-brainer.

Chase Ink Preferred – Offering 3x on up to $150k annually on travel, shipping, phone/cable/internet, and online advertising provides a great way to pull in major Ultimate Rewards hauls each year.  It also offers the most comprehensive cell phone protection of any major credit card.

Chase Freedom – Rotating quarterly 5x categories capped at $1500 per quarter, the ability to pool points between accounts, and no annual fee make this an easy keeper

Balance Transfer Cards – I hold a slew of other no-fee cards as well that have very high limits that I don’t intend to close.  These cards routinely send me access checks which can allow me quickly to invest in something or create cash if needed.  Additionally, the high limits and 0 balance currently on these cards helps keep my overall credit utilization in check, leading to a more stable high credit score.

Open Cards I am Closing/Converting

American Express Everyday – While I have no specific plans to close this card (as it has no annual fee), it only offers 2x on grocery up to $6k per year and a 20% bonus on all points if 30 or more purchases are made in a calendar month.  My plan with this card is to potentially convert to another Amex product or wait to see if something new comes out that is worthy of an Amex slot.

American Express Hilton Ascend – This card made the long march from a Citi Hilton Honors to an Amex Hilton Surpass to now its current form.  I can see where some would get value from this card, but for me it is just taking up room and has an annual fee (that I have been able to get waived for the past 2 years).  It its current state it doesn’t add much value to me, but I am still contemplating what my hotel moves will be for the latter half of 2019 into 2020

Chase Sapphire Preferred – For some it is probably shocking to see this card in this section of my list but compared to the other items on this list and my spend patterns, this card is eclipsed in each of it’s spend categories by another card with only 2x dining and travel.

Citi Premier/Prestige – I am lumping these two together as I will only be closing one, but at this stage I don’t know which.  Why am I keeping one?  Although Citi has some odd rules about combining ThankYou points, keeping open a card that allows access to transfer partners is important.  The Citi Premier has an annual fee of $95 and for that price point, some solid earn rates with 3x travel and 2x dining and entertainment.  The Citi Prestige is a premium card with a $495 fee with some very solid earn rates (5x airfare, 5x dining, 3x hotels and cruises), but the big winner on this card is the coveted 4th night free benefit.  With Citi limiting this benefit to two uses per year, it does put a damper on what was a 4th night bonanza, but the $250 travel credit is still very much alive.  At this point I am leaning towards keeping the Citi Prestige and dumping Premier.

Cards I am Considering

Citi Rewards+ – If you haven’t heard of this card, listen up!  This is hands down the best points card for a person that makes a lot of small purchases.  It earns 2x gas and grocery (capped at $6k per year), but the kicker is that all purchases are rounded up to the nearest 10 points.  That $4 coffee = 10 points, the $1 soda = 10 points, the $0.01 Amazon reload = 10 points. You COULD say that this card earns 1000x on certain purchases!  Regardless, this is a great card and since I haven’t opened OR closed Premier or Prestige in the past 24 months, I AM eligible for the bonus. 

Chase Ink Unlimited – I have every other Ink card under the sun, so what’s one more?  The reality here is that when I’ve maxed out my Amex Blue Business Plus, am not working on a sign-up bonus, and am not purchasing in a category with a bonus this card (and Freedom Unlimited) offer the best value at 1.5x on everything.  What is even better?  This is a no fee card and the points can be pooled with my other Chase accounts.

American Express Hilton Aspire – I have the Ascend card and it isn’t do anything for me now.  If I move away from Marriott, the EASIEST place to go is Hilton, as the Aspire card has a slew of great benefits and credits and provides Hilton Diamond status just for holding the card.  While it is a less generous program, many of the changes to Marriott are lowering the value of the program, so if I can grab status for no spend, that is a better bargain in my opinion.

Chase World of Hyatt – Much like the Aspire if I move to Hilton, this is card to grab if I move to Hyatt.  Hyatt’s top-level status – Globalist is the best of the top tier statuses out there, but Hyatt doesn’t have as many properties, so sometimes you have to go out of your way to stay in their properties.  The spend required to hit that top tier status is at least $125k, depending on your current Hyatt status.  Earn rates on this card aren’t fantastic, but along the way to gaining status there are multiple free night certificates to be picked up.  For a fee of only $95 per year, it may be the way I go.

Conclusion

There you have it…I have bared my um…wallet?…to you all and I’m curious as to what you all think.  On what points do you agree?  Where do you think I’m a total idiot (let’s keep it specific to credit card and points to save on time)?  What would you do differently? 

I’ll be revisiting this later this year when I have a better idea as to what I’m going to do with hotel loyalty.

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