LWYang

It has been a week since I received my American Express Platinum card, and I am liking the card more than I expected. Normally this is not a credit card that I would consider applying given the high annual fee, but the 100,000 Membership Rewards bonus points after $3,000 spending and the potential to travel on Singapore Airlines’ premium cabin are just too good to pass up. And the benefits that came with the card makes me want to actually keep the card beyond its first year. Below is what I like (and don’t like) about the card.

The Good:

• After receiving approval, the card was overnighted to me the next business day without my asking. Minimal waiting time in getting the card.
• Access to American Airlines and Delta lounges when flying with same day ticket, and entry to US Airways lounges any time.
• $200 in statement credits for airline incidental fees every year(can possibly be used to buy airline gift cards). Milevalue has step-by-step directions on how to accomplish this.
• $100 Global Entry application fee reimbursement. I just applied for mine and am waiting to hear back. Having an expedited U.S. immigration clearance line is totally worth the one-time application.
• Instant Starwood Preferred Guest Gold status. This is normally achievable after completing 10 stays or 25 nights in a year. Gold member gets 3 starpoints per dollar spend, 4pm late checkout, possible enhanced room upgrade at check-in, and welcome gift with each stay. This will certainly entice me to book Starwood properties whenever I can.
• Car rental privileges with Avis, Hertz, and National. 
• When booking hotels through the Fine Hotels & Resorts program using Amex Platinum, members get free breakfast for two, room upgrades, 4pm late checkout, and spa credits. 
• No foreign transaction fee. But American Express are not widely accepted outside the U.S.
• Good customer service over the phone. Phone reps were courteous and patient in my experience.

The Not So Good:

• $450 annual fee, not waived the first year. But the yearly $200 airline credits and $100 Global Entry reimbursement somewhat decrease the blow.
• Not aesthetically pleasing. The card feels cheap and dated despite its platinum status and high fees. The Chase Sapphire Preferred card feels much more substantial and has a more attractive design.
• American Express not accepted everywhere. This makes fulfilling minimum spend requirements just a little tougher. 

Choosing which credit card to use has normally been an easy decision for me. For the past six months, my go-to card has been the Chase Sapphire Preferred. It’s one of two cards that I carry in my wallet (the other card is rotated periodically). But with the arrival of three new credit cards (Chase Freedom, Citi AAdvantage Visa and American Express), each with its own minimum spend requirement, my normally skinny wallet has gotten a lot thicker and my credit card usage routine has gotten trickier. Fortunately, I was able to complete the spending requirements for the Chase Freedom ($1,000 in three months) and Citi AA Visa ($2,500 in four months) during the first month due to a series of reimbursable expenses. The remaining card, Citi AAdvantage American Express, has a $5,000 spending requirement to get the full sign-up bonus.

This month a new reimbursable expense opportunity came up. I was notified that my proposal for a travel grant was accepted and I was awarded $1,225 to attend the RBMS (Rare Books and Manuscripts Section) Preconference in Minneapolis in June 2013. The money has to cover my airfare to/from LAX, three nights of hotel (hopefully upscale) in downtown Minneapolis, and the conference registration cost of $325. Even though the conference is still six months away, my inner travel-agent just couldn’t wait to make flight and hotel arrangements.  

Airfare: $406

Sun Country and Delta both offered the most convenience by flying non-stop for around $400 at the time of search. But since both airlines don’t offer high value on their frequent fliers miles, I skipped them to check out other options. United and American both offer flights with one connection to MSP at around the same price. I chose an United red-eye flight via Chicago that would get me to Minneapolis on the opening day of the conference.

And this is where things got a little complicated: which credit card to use? My most obvious card of choice was the Citi AAdvantage American Express because of the minimum spend that I had to make, but I wasn’t crazy about getting only one mile per dollar by using the Amex, versus using my Chase Sapphire Preferred (two points per dollar on travel), United MileagePlus Explorer (two miles per dollar plus United benefits), or Chase Freedom (5% quarterly bonus on airfares). Eventually I went with United MileagePlus Explorer for the 2x miles, one free checked bag, and priority boarding benefits. Even with Freedom’s 5% reward of 2,000 Ultimate Rewards points, saving $50 on checked bag trumps the bonus UR points.

Hotels: $487 

My first hotel choice was to stay at the RBMS conference hotel Marriott City Center, but the conference rate of $174 per night before taxes would have busted my budget by a lot. A quick look on hotels.com shows that the average 4-star hotels go for around $250 to $350 a night. Eventually I did find a prepaid rate of $140 for Kimpton’s Grand Hotel Minneapolis. To keep my plans flexible, I was able to find the same rate on Kimpton’s website and a direct reservation was made. I will probably use the AA Amex for this one. 

Conference Registration: $325

I plan on using my AA AmEx to pay for the registration cost. 

Total conference cost: $1,218

In the end I was able to stay within budget with a total of $1218, $7 under my budget of $1225. I didn’t get to use my AA Amex as much as I like, but it’s always nice to have an arsenal of credit cards to pick and choose what works best for me. Fulfilling large sums of minimum spend requirements did seem daunting at first, but there are always creative ways to get it done, such as paying for property taxes with a credit card (2-3% fee), book travel arrangements for friends and families, utilize Bluebird and prepaid cards when feasible, and never use cash when cards are accepted. 

Ask a random person on the street about what is the best credit card out there, the answer is probably the one in his or her wallet. For some, cards without annual fees will do just fine. For others, it may be low interest rates, or cards that offer cash back bonuses. Business travelers are often loyal to their airline-branded cards of choice. As a travel-minded person, the Chase Sapphire Preferred is my go-to card for everyday use and traveling. Let me just say right off the bat that the card does charge an annual fee to use, which is $95 (first year waived). Other than that, the card is pretty much perfect. 

What makes Chase Sapphire Preferred my favorite credit card:

• No foreign transaction fees — A must-have feature for international travelers.

• Chase Ultimate Rewards — Arguably one of the best and flexible credit card reward programs out there. Points can be transferred 1:1 to many airline and hotel programs, such as United MileagePlus, Southwest Airlines, Marriott Rewards, and Hyatt Gold Passport. Points can also be redeemed for cash, travel, and merchandise.

• 2X points on travel — Get 2X points on airfares, hotels, cruises, and rental cars.

• 2X points on dining — Twice the points at restaurants, including fast food joints. 1 point on all other purchases.

• 7% annual point on travel — At the end of each year, Chase will automatically award cardholders a 7% annual points dividend on all points earned on purchases for the year. 

• Great customer support — Dial the 800 number and a live telephone support person picks up. No more speaking to a machine.

• A card that stands out — Made of metal material, the card is got heft. I often get complements from cashiers.

Using United MileagePlus as my primary frequent flyer account, the ability to transfer Ultimate Rewards points to United on a 1:1 basis and earn double points on travel and dining makes the Chase Sapphire Preferred the one card that I carry and use everywhere. The earning potential is even greater than Chase’s United Airlines-branded card, which does not offer category bonuses except for United purchases. The current sign-up offer of 40,000 Ultimate Rewards points after $3,000 spending in three months is a great boost to anyone’s mileage holding.

More than ten years ago, when I turned 18, I unknowingly made the prescient choice of applying for a Capital One credit card. That very card has stayed with me ever since, and it remains one of the few credit cards that I take with me on international trips. Over the years, as I used the card responsibly by not having late payment and always paying my monthly balance in full, the card has helped in establishing and lengthening my credit history, improved my credit scores, and allowed me to receive more lucrative credit card offers since then.

The Capital One card is great for two reasons. First, it does not have an annual fee. Second, Capital One does not charge foreign exchange fees, which is great for international travelers. For the uninitiated, foreign exchange fees are extra charges tacked onto any purchases made abroad, and they typically range anywhere from one to three percent of the total purchase, depending on the card issuer. This may not sound like a lot, but after spending a few hundred dollars on hotel, restaurants, and excursions, three percent doesn’t seem so small anymore. Plus, a Card Hub study has shown that using a credit card without FEF can save travelers on average 8 to 16 percent relative to bank and airport kiosk exchange services.

My no-frills Capital One card does not compare favorably with other FEF-free premium cards that are currently on the market, such as the Chase Sapphire Preferred and Citigroup’s ThankYou Premier. But premium cards are harder to obtain by requiring higher income and longer credit history. For people who are new to credit, a Capital One card is a great starter card to have and build your credit with, and its generous FEF-free feature makes it a must-have for any international travelers.