I’ve been hesitant to get a travel card since I typically travel really frugally and don’t care about business class, airport lounges, or luxurious hotels. I plan on taking 1-2 big trips per year, mostly out of the country for the next five years or so. I buy the cheapest flights I can find and choose the cheapest hotel that doesn’t resemble a Motel 6. Given this, I’m unsure whether these cards would be worth it for me.
I also rarely eat out, which excludes the AMEX Gold card benefits, and I’m not using my credit card for rent (I live at home with my mom to save money). It seems like using a catch-all 2% cash back card, high-yield savings account, or investing might save me more money than accumulating points to get free or discounted flights or hotels that still come with high price tags.
Any tips or advice would be much appreciated.
Edit: Template Data:
Current cards:
Discover IT $4,500 limit, May 2019
WF Active Cash $2,500 limit, Feb 2024
FICO Score: ~750
Oldest account age: 5 years 1 month
Chase 5/24 status: 0/24
Income: $95,000
Average monthly spend and categories:
Insurance: $150
Groceries: $220
Gas: $260
Other: $300 (no rent expenses)
Open to Business Cards: No
Purpose of next card: Travel
Do you have any cards you’re considering? Chase Freedom Flex, Chase Freedom Unlimited, and Chase Sapphire Preferred
Nicholas said:
Cashback is likely better for you, as is the case for many Americans. Could you provide the template data?
Template for Card Recommendation Requests:
Please use the following template for better recommendations:
Current cards: (list cards, limits, opening date)
e.g. Amex BCP $8,000 limit, May 2019
e.g. Chase Freedom Flex $10,000 limit, June 2021
FICO Score: e.g. 750
Oldest account age: e.g. 5 years 6 months
Chase 5/24 status: e.g 2/24
Income: e.g. $80,000
Average monthly spend and categories:
dining $800
groceries: $400
gas: $100
travel: $100
other: $30
Open to Business Cards: e.g. No
What’s the purpose of your next card? e.g. Building credit, Balance transfer, Travel, Cashback
Do you have any cards you’ve been looking at? e.g. Chase Freedom Unlimited
Are you OK with category spending or do you want a general spending card?
Please review the Card Recommendation Request Template here: Template for Card Recommendation Requests Interested in cashback cards? Check these resources from the sidebar:
I’m pretty frugal too, and I’m planning to get the CFF next. I already have the CFU. Then I’ll go for the CSP because even with the $95 fee, having it as a passthrough card to transfer to travel partners essentially pays for itself by doubling my points. The $50 travel credit is also easy to use. I think it all depends on your spending patterns. If you can’t justify the $95 fee, I would suggest looking at cards like Citi for their $200 welcome bonus with a $750 spend in three months.
@Nicholas
Great info! I haven’t looked into AAA cards. I’m concerned about whether I’d save more using category spending via multiple cards instead of booking travel through points. From what I hear, domestic flights and hotels offer better deals than international ones. It seems like I might be better off leveraging category spending and booking airfare independently.
@Benjamin_Lee
Travel rewards aren’t typically for casual consumers. Many spend hours deal hunting to optimize point usage. You’re in the right mindset for a cashback approach, especially since Comenity isn’t the best issuer and their customer service may not be great.
Given that your travels are international and that your spend is more towards gas and groceries than dining, the Chase Sapphire Preferred probably isn’t a good fit. Chase is excellent for certain hotels and airlines, but you might find better options with either Capital One Venture or VentureX for 2x everywhere or the Citi Premier, which gives 3x on gas and groceries.
If you’re questioning the value, the $95 annual fee and poor multipliers (3/2/1x) usually require offsetting benefits. However, the sign-up bonus can be one of the best. You could join, grab the bonus, and then downgrade to a no-fee card after the first year to get value. That’s how I earned 85k Hyatt points from a $95 investment.
Hotel cards that offer an annual free night are fantastic even for frugal travelers. Holding several can significantly reduce lodging costs. The Choice Privileges Select MasterCard, for instance, gives 30k points annually for just a $95 fee.
I agree, but bonus rewards make it worthwhile if you can meet the minimum spend. Certain cards might cover a round trip to Europe depending on the welcome offers. Just be cautious about accumulating too many cards as it might affect your insurance premiums.
The CSP might work for you since Chase has a better system for frugal travelers. The sign-up bonus alone can give you significant travel rewards. Consider getting the CSP, CFF, and Wells Fargo Autograph. Chase points convert very well for staying at hotels and booking flights.
Earning points from everyday spending to buy travel.
Earning more points when booking through travel portals.
Gaining travel perks, especially for frequent travelers.
You might fit into the first two categories, but your spending is relatively low, so cashback cards paired with your travel needs might be better.
Haze said:
There are plenty of no annual fee travel options. Do you have any specific hotel brands or airlines you frequently use for trips?
It’s not just about the fee for me. Booking travel through portals often results in more expensive flights. I usually find the cheapest options on Expedia or Kayak without a specific airline preference as I travel worldwide. I’d like to know more about international partners for travel cards before applying.
In my opinion, the VentureX is ideal for you. You can use the travel credit for domestic hotel stays through their portal and leverage points for international travel. Capital One is solid for international partnerships. However, if you don’t require travel protections, consider just getting a 2% cashback card and linking it to a savings account.