Credit card companies offer various perks to attract and retain customers. You may get a good welcome bonus if you spend enough money within a few months, and you will also likely receive points or cash back on every purchase.
However, a Fat FIRE advocate recently expressed dissatisfaction with Amex Platinum. This individual no longer feels valued by the company despite spending $50,000 each month. Other Redditors jumped into the comments to share their thoughts about this trend and recommend some ways to maximize credit card benefits.
Key Points
Some credit card companies don’t have the same reward structures that made them so popular.
A Redditor who spends more than $50,000 per month is looking for alternatives after AMEX fell below their expectations.
It’s hard to believe, but today there are credit cards offering up to 5% cash back, large statement credits, $0 annual fees, travel rewards, and more. See for yourself. If you apply for a card today you could secure some of the best rewards out there. Click here to get started.
Use Bank Of America
The top commenter suggested putting $100,000 into a Merrill Lynch or Bank of America account and then using the company’s Visa card for maximum benefits. This setup will net you 3.5% cashback on travel and dining, plus 2.625% cashback on everything else. The recommendation came from someone who was fed up with using different credit cards for different categories and opening a bunch of cards just for their bonuses.
This route can save you a lot of time while allowing you to secure top-tier rewards. Bank of America also doesn’t have an annual membership fee that is tied to those benefits. To top it all off, there are a lot of expenses that count as travel and dining, even if it’s not obvious.
“They are *extremely* generous about how they code for travel and dining. For example, I pay monthly maintenance expenses on several rental properties with the card. Magically, that’s counted as lodging, so I get 3.5% back,” the top commenter stated.
Fees Add Up
The original poster isn’t the only one who’s fed up with Amex cards. One Redditor commented that the Amex Centurion card isn’t as good as it used to be, despite paying roughly $5,000 in fees. The Redditor got plenty of upvotes from that comment.
You can choose from many credit cards that do not have annual fees. If you don’t have to contend with an annual fee, all of your rewards are pure profit as long as you pay off your credit card balance at the end of each month.
Plenty of credit cards offer unlimited 2% cashback on every purchase, and that may be enough to edge out some of the credit cards with annual fees. While big spenders may be able to justify the high annual fee, it isn’t worth it for everyone.
Travelers Benefit The Most From High-End Credit Cards
Another Redditor mentioned that most of the top-tier credit cards only serve people who travel often. While this setup benefits regular travelers, it’s important to keep this distinction in mind if you do not travel.
It’s important to view each credit card while considering how you spend your money and what you want out of life. Some people enjoy traveling, but opting for a simple cashback credit card may be the better choice for others.
However, that doesn’t mean you’re getting the deal of a lifetime if you enjoy boarding airplanes and going to new destinations. Some Redditors criticized the travel portals of various credit cards. They said that hotel and car prices include travel agent markups and are not competitive. It’s always good to review the numbers before opening a card or making any big travel purchases to ensure you are getting the best deal.
Today’s Top Rated Credit Cards Are Hard to Believe (sponsor)
It’s hard to believe, but today there are credit cards offering up to 5% cash back, large statement credits, $0 annual fees, travel rewards, and more. See for yourself.
I couldn’t believe it at first. Frankly, with rewards this good I don’t expect them to be available forever. But if you apply for a card today you could secure some of the best rewards out there. Click here to get started.
The post Credit card companies no longer value a $50k monthly spend appeared first on 24/7 Wall St..
