Thanks in advance for helping me with this. I’m new to credit card optimization. I just got the US-BAR card for my everyday expenses. My primary (and only) card for years was the Citi AAdvantage Platinum Mastercard, but I don’t want to use it anymore as it has terrible benefits and AA has been disappointing. I’m looking for another card that will complement the US-BAR. I travel about 6-8 times a year, 50% internationally. Mostly travel to Europe and South America (especially Peru). I have been flying American Airlines for a few years because PHL is convenient for me, but I am open to transferring my alliance to Delta or United (can fly from ACY, ABE, EWR, or BWI). I would like lounge access and good travel protection benefits. Any advice would be incredibly appreciated. Template below.
Current cards: (cards, limits, opening date):
USBAR - 10k limit (Oct. 2024) - Will use as everyday card
Citi AAdvantage Platinum Select World Elite - 15k limit (March 2022) - want to stop using it completely
Chase Freedom (OG) - 24k limit (Oct. 2017) - Never use it… but should I? Or should I upgrade it?
Two Amex cards (Blue cards) from over 18 years ago that I haven’t used in more than 8 years, so I don’t count these as part of my card setup. I don’t even think I can use them anymore.
FICO Score: 865 (FICO 8 via Citi), 850 (FICO 8 via Experian)
Oldest account age: 19+ years
Chase 5/24 status: 0/24
Income: 185K
Average monthly spend and categories:
dining: $300 (mostly pay with Apple Pay)
groceries: $150 (Giant, Costco, Petsmart)
gas: $200 (Costco)
travel: ~$800 (about $10k a year but expense is not equal every month)
Subscriptions: $220 (gyms, NYT, PBS; no streaming)
What’s the purpose of your next card? Travel with solid benefits
Do you have any cards you’ve been looking at? Fidelity Visa, Chase Sapphire Reserve or Preferred, Amex Platinum, Delta SkyMiles Platinum or Reserve, AAdvantage Aviator Red World Elite, Citi AAdvantage Executive World Elite MC (which I guess would make sense but I’d have to get over my dislike of Citi’s subpar customer service and no SUB)
Are you OK with category spending or do you want a general spending card? OK with category spending
@Dezi
Would the new US Bank Smartly credit card make perfect sense? I’m asking because I’m in a similar situation, and that’s what I was thinking of getting next.
Oren said: @Dezi
Would the new US Bank Smartly credit card make perfect sense? I’m asking because I’m in a similar situation, and that’s what I was thinking of getting next.
@Dezi
I’d rather park $1K in a checking account and make a $1 monthly deposit with Alliant to get 2.5%. $10K monthly max spending, but that’s high enough for most people.
Zayden said: @Dezi
I’d rather park $1K in a checking account and make a $1 monthly deposit with Alliant to get 2.5%. $10K monthly max spending, but that’s high enough for most people.
Yep, fair point. I have the Alliant card and enjoy it. Use the checking account with $1K as my backup.
Oren said: @Dezi
Would the new US Bank Smartly credit card make perfect sense? I’m asking because I’m in a similar situation, and that’s what I was thinking of getting next.
Haven’t heard of that card! Why do you think it might be good?
Oren said: @Dezi
Would the new US Bank Smartly credit card make perfect sense? I’m asking because I’m in a similar situation, and that’s what I was thinking of getting next.
At least according to the most recent product page I looked at, the Smartly WILL have a foreign transaction fee, so probably not the best in this scenario unless you optimize to get 4% from the card and then eat the 3% fee.
I’ve decided to simplify my life. USBAR paired with my Fidelity card and an Altitude Go. I only have to carry 2 cards with me; it makes life so much simpler.
Depends. The supplementary card should probably either be a catch-all or a dining card.
I can think of Venture X & Bilt for points, and Fidelity, Alliant, BofA 2.6%, US Bank Cash+, US Bank Altitude Go, all being decent for cash back. Just ask yourself what you’re not reaching with USBAR and find the best card.
It seems that the overwhelming majority of your spending can be done with Apple Pay, so USBAR seems like a great fit. However, it seems to fall short on lounge visits, given how many times you fly. I’m thinking Venture X might work well as a complement in your case. You’d get unlimited lounge visits, plus you’d earn 2 miles for all of your non-Apple Pay transactions. You have enough travel specific spending that I think you could easily take advantage of the credits to effectively make it a -$5 annual fee. Redeeming the miles at a one cent rate would be no worse than a 2% cash back card, and you might even get better value using their transfer partners.
The not-yet-released US Bank Smartly card would probably work for you. It starts at 2% flat cash back, but you can bump it up to 4% flat as you increase your deposits with US Bank. Otherwise, any 2% flat cash back card would work. I recommend the Fidelity Rewards Visa (since you already have a USBAR and the card is issued by Elan Financial which is owned by US Bank). The Wells Fargo Active Cash and Citi Double Cash are also commonly recommended. Also check your local credit union or bank to see if they have a 2% flat card as many do.
Since you just got the USBAR, I would recommend using it for a few months and noting what transactions you can’t use mobile wallets for.
If a particular category comes up often that you’re unable to use it for, get a category card for that.
If it’s mostly non-category spending, get a 2% cash back card.
Regarding travel protections, you should probably be booking your travel with the USBAR, which will cover you with its excellent protections. USBAR earns the same rate on travel as it does on mobile wallets and lets you redeem your points at 1.5cpp.
For lounge access: you already have 8 Priority Pass visits per year with the USBAR. If that isn’t enough, the Venture X is the least expensive card with unlimited PP access. Or, if you get value from being a Marriott or Hilton member, their credit cards offer access too. For example, the Hilton Surpass card has solid perks and gives you an additional 10 visits per year with only a $150 annual fee (with credits to offset that cost). The Hilton Aspire, Marriott Bonvoy Brilliant, or Ritz-Carlton cards also provide unlimited PP in addition to their hotel-related perks.
but I am open to transferring my alliance to Delta or United (can fly from ACY, ABE, EWR, or BWI).
You can always try this. It’s a good idea to explore, but I suspect you’ll find it worse than sticking with PHL and AA plus their OneWorld partners.
I highly recommend skipping the lounge thing that YouTubers and other influencers hype. They get too crowded with waitlists and lines. I wouldn’t suggest paying an annual membership fee just to go a few times a year.
@Orion
I am actually starting to think the same way. I might just get the Barclay Aviator and keep flying with AA, since it makes sense based on where I live and travel. I dislike the Citi card, though, so I’m hoping Barclay is better.