American Express Membership Rewards points are some of the best rewards you can earn because they're flexible - you can use them for travel, gift cards, or statement credits, among other things.
Amex cards that earn Membership Rewards include:
Each card offers a unique set of bonuses and benefits depending on how you spend and travel.
While Amex's rewards program has a lot of flexibility, that doesn't mean all redemption options get the same cents per point value.
Let's start with the worst ways to use your Amex points.
Amex has a shopping portal with many products you can buy with Membership Rewards points. While this is a versatile way to use your points, it doesn't have a high redemption value.
For 10,000 points, you'll only get a value of 0.5 CPP— which is not the best value for Amex points.
If you're set on using points for merchandise, you might be better off buying a gift card or going through a shopping partner like Amazon.
Amex has a ton of airline transfer partners that you can transfer your points straight to.
Most partners offer a 1-to-1 transfer rate, so if you transfer 1,000 points to them, they will give you 1,000 points back. Sometimes, American Express runs promotions for transfer partners where you can get a better rate.
One thing to keep in mind here is the Excise Tax Offset Fee.
In most cases, American Express charges an excise fee of 0.06 cents per point (capped at $99 for any single transfer) when you transfer points to U.S. airlines with a card such as The Platinum Card®.
American Express's U.S. airline partners that charge an excise fee include:
On a 100,000-point transfer, that fee equates to $60. In addition to these charges, the airline may also charge taxes and fees.
However, not all partners charge this fee. Some of the airline programs where you can transfer Membership Rewards points without paying any fees include:
Since these are points from airlines outside the United States, American Express won't charge you the Excise Tax Offset fee to transfer points into these programs, although you need to evaluate their value (Note: some of them are hard to redeem points from). Transferring points to their hotel partners will also be free of charge.
Unfortunately, the only way to transfer points to your Delta SkyMiles account is through AMEX, so be prepared to pay the fee to utilize them.
To get the best redemption rates, you need to do a lot of research before you transfer your points.
If you don't want to pay your card bill, you can redeem your points for statement credits, effectively wiping out any purchases you made with the card. While this option is handy, it also isn't recommended.
However, if you're in a pinch, this can help.
It's best used as a last resort if you need some last-minute funds to cover your balance. But each point will only be worth 0.6 CPP. So the low value makes it not a great option.
We'll talk about other setups later in this post if you're after cash.
With JustGiving, you can donate your points to over 1.5 million charities. Unless you can redeem your points for travel, you'll likely get no more than 0.7 cents per point from this redemption option.
The points aren't the greatest value for your money, but if you don't need your points, this is a decent option.
Beware of the value change, though. Depending on the organization, the value of your points may vary, so pay attention.
Doing the math can help you make a bigger impact.
With American Express Travel, you can book all kinds of travel, including hotels, vacation packages, and cruises.
If you book travel through the American Express Travel portal (excluding airfare), you will only earn 0.7 CPP. In addition, considering other companies will give you 1 CPP, booking your travel using the Amex Travel portal may not be the best way to spend your Amex points.
Keep in mind that using the Amex Travel Portal is NOT the same as using a transfer partner.
Similar to option 1, you can use your points to spend with certain merchants.
The cents per point come out to 0.7 mostly, except for NYC Taxis and Ticketmaster.com. Those have different point-to-cent ratios, so check the redemption rate before redeeming, as redemption rates may vary from retailer to retailer.
You also need to be careful because some platforms like Amazon can automatically fill in that you're using M.R. points when you check out.
If you want to use your points for shopping, there are probably better options in this list.
This option is new for 2022.
If you have a business checking account with Amex, you can redeem your points for cash. You'll get 0.8 CPP, so 10,000 points would come out to $800. These points are considered rebates instead of income, so you're not taxed on them.
So if you have a lot of points, cashing out your business checking account through your Business Platinum might be a better option. (More about this below)
Gift cards come in different types, and your redemption value varies. Then again, there are many 1 CPP options with less variance, which is not too bad.
It may not be the best redemption method for your Amex points because it has additional hoops to jump through.
With Upgrade with Points, you can bid on seat upgrades at over 20 participating airlines using your Membership Rewards points. This is a convenient option if you are worried about cramped seats on long flights.
It might make more sense to upgrade your seat with the actual card and earn more points because there are higher-value options to redeem your points. However, membership rewards here are worth at least 1 CPP depending on how you use them.
If you value your seat on the plane, you might like this option.
This is a great option for the avid traveler.
Compared to other companies, you can get a decent rate on your points. You can expect to redeem 1 CPP with flights and hotels if you book it through the Amex Portal.
But if you have the Chase Sapphire Reserve, you could get 1.5 CPP when you book through their own portal.
With this option, you can get an elevated value for your points, whether it is flights, and pay yourself back.
This is a better option than the 7th option mentioned above.
Instead of $800 per 100,000 points, you can get a better rate of 1 CPP. That comes out to $1,000 per 100,000 points. You must have the Amex Business Platinum card, though.
If you run a large business, that might be enough to offset the annual fee, but you still need to do the math.
If you own a Morgan Stanley brokerage account, this might be useful.
It's similar to a business checking account using your business platinum but on a more personal card side.
If you own the Platinum Card from American Express Morgan Stanley edition, you can cash out your points to your brokerage account at 1 CPP.
The points can be cashed out anywhere once they reach your brokerage account.
Though, you might want to consider these things first before you use this option:
I made a blog post about this before and how to waive the annual fee. You can learn more about it here: https://www.asksebby.com/guides/waive-amex-platinum-annual-fee
You can transfer M.R. points at 1.1 CPP to your brokerage account with the Platinum Card from American Express Charles Schwab. So if you're looking to redeem for cash, this might be the best option.
However, as with any other Amex Platinum cards, there are a few things you need to consider:
If you have a Business Gold, you can get a 25% rebate when you book an eligible flight.
So, if you use 100,000 points to cover a $1,000 flight, you'll get 25,000 points back. That means you used only 75,000 points for a $1,000 purchase, which works out to a rate of 1.33 CPP.
The maximum rebate is 250,000 points, so you wouldn't want to redeem more than 1 million.
Platinum Business cardholders can redeem M.R. points for travel and get a 35% rebate when they use their card for either first class or business class travel or flights with the airline of their choice (via the travel incidental credit).
That means if you spend 100,000 points for a $1,000 flight, you'll get 35,000 points back. Considering the 35% points rebate, the effective value is 1.54 CPP.
This is your best bet if you're looking for a simple travel redemption. The maximum rebate here is 1 million points per year, so you wouldn't want to redeem more than 2.85 million.
This is the same for the two previous options, but even better!
You can redeem your points with Business Centurion for a 50% rebate. As you know, spending 100,000 points for a $1,000 flight would get you 50,000 points back.
With the rebate, you can effectively get 2 CPP, the highest rate we've discussed.
On top of that, there is no maximum rebate. However, the personal Centurion card does not offer flight rebates.
Finally, you can transfer your points to American Express airline and hotel partners.
The rate here can be up to 10 CPP, but it can generally fluctuate or come out to about 2 or 3 CPP when you get through all the transferring. There are a lot of nuances to this one.
But for avid travelers, this might be a decent option for you.
American Express points can be redeemed in many ways, so it's important to know which one gives you the most value.
While you can use them for merchandise or shopping with Amazon, they don't provide good value.
Most people will get the best value from their points by transferring them to airline or hotel partners or using your Amex business card.
Watch this video to find out how to get the most out of your Amex points:
Starting May 31, 2020, Chase added a new temporary benefit for Chase Sapphire Preferred® Card and Chase Sapphire Reserve® members to “Pay Yourself Back.”
Note: The “Pay Yourself Back” feature is not available to the no annual fee Chase Sapphire card.
The Pay Yourself Back Program lets Chase Sapphire Preferred and Sapphire Reserve cardholders redeem Ultimate Rewards to offset select category purchases at a favorable rate.
Pay Yourself Back Categories:
The current promotion is valid through September 30, 2020, but it’s possible that it may be extended due to uncertain times.
[ March 30 Update ] Pay Yourself Back is extended until Sept 30, 2021.
Sign into your online Chase account and navigate to the Ultimate Rewards tab located on the bottom of the left column.
Select the card you’d like to access. If you have multiple Ultimate Reward earning cards, you can choose to pool points to the Sapphire card to redeem.
In our example, we choose the Chase Sapphire Reserve.
Navigate to the left hand column and select the “Pay Yourself Back” menu item. Clicking the main promotional banner also works, as seen in the screenshot below.
The current categories for pay yourself back are: restaurant and grocery stores (including take out and eligible delivery services), home improvement stores, and select charitable organizations.
After each purChase posts, you have 90 days to pay yourself back. Check the respective box to select the purChase.
Enter the dollar amount you’d like to receive as a statement credit by using some or all of your available Ultimate Rewards points. The Chase Sapphire Preferred redemption rate is 1.25 cents per point, and the Sapphire Reserve is 1.50 cents per point.
After setting the cash value, click “Confirm & Submit” to redeem!
One of the main benefits of Chase Ultimate Rewards points is that you can transfer them out to partners if you have the Chase Sapphire Preferred, Chase Sapphire Reserve, or the Chase Ink Preferred.
You can view credit card offers by going to the "Credit Card Offers" tab. Find offers for the respective cards in "Travel Rewards Credit Cards" and "Business Credit Cards." You don't have to use our links, but we're grateful when you do. Thank you for supporting AskSebby!
Chase Ultimate Rewards transfer at a rate of 1:1. On average, you can get up to two cents per point when you use transfer partners.
If you're looking for the most value possible, then airline partners are the way to go for first class redemption. This also works well for last minute flights.
The way I redeem points for "best value" is hotels because everyone in your travel group can benefit.
For example, if I transfer my Ultimate Rewards points to United:
On the other hand, if I transferred my Ultimate Rewards points to Hyatt:
For the cost of a round trip United Polaris flight to Asia, I can get four nights at a top tier Hyatt property.
Examples:
IHG is not an ideal transfer partner because of the cost of the points, and you typically need more points for a redemption.
In my experience, Hyatt has the best redemption value for transfer partners. The Category 1 Hyatt properties start at 5,000 Hyatt points.
Category 1 = 5,000 Hyatt points / 5,000 Chase UR points
Check out the video below for more redemption ideas.
Before applying to Chase credit cards, it’s important to understand the rules for applications (2/30 Rule), eligibility (5/24 Rule), and bonuses (once every two years).
The 2/30 rule says that you can only have two applications every 30 days or else you’ll automatically be rejected.
If you don’t have a high credit score (700+), your chances of getting approved for the Chase Sapphire Reserve® is slim. Chase usually looks for a great credit score or a banking relationship. It’s a lot easier and less risky for Chase to give you a credit line of $1,000 with the Chase Freedom Flex℠, as opposed to the minimum $10,000 credit limit with the Chase Sapphire Reserve.
The most infamous rule is the Chase 5/24 rule. The idea is if you have more than five new credit cards in the past 24 months, from any issuer, you’ll automatically get rejected for certain Chase cards.
For example, if you received 4 Bank of America credit cards and 1 Citi credit card in the past 24 months, then your Chase application will be automatically rejected because of 5/24.
The main exception to this is Chase business cards because they don’t go on your credit report. Even though Chase can see them on your report, they don’t care.
Regarding intro bonuses, you can qualify for a new bonus every 24 months. For example, if you received the Hyatt sign up bonus in 2013 and applied for the card again in 2017, you would be eligible to receive a new bonus.
If you’re currently an authorized user for a card you want to apply for, you should remove yourself to qualify for the intro bonus.
The one exception to the intro bonus rule in the section above is the Chase Sapphire family of cards.
The “One Sapphire Rule” refers to Chase Sapphire card applications and approvals.
You cannot apply and get approved for a Sapphire card if you currently have an open one.
You can have an open Chase Sapphire Reserve, Chase Sapphire Preferred® Card, OR a Chase Sapphire card, but not more than one at a time.
Exceptions to the “One Sapphire Rule”:
In addition to the “One Sapphire Rule,” you can only receive an intro bonus to a Chase Sapphire card once every 48 months (4 years).
For example, if you receive an intro bonus for the Chase Sapphire Preferred in Jan 2018, you would have to wait until Jan 2022 to receive another Chase Sapphire bonus.
If you were to downgrade the Chase Sapphire Preferred in Jan 2019 to a Chase Freedom card and apply for the Chase Sapphire Reserve, you would not qualify for the bonus due to the 48-month rule.
Again, the 48-month rule only applies to the Chase Sapphire family of cards.
If you are an authorized user on a Chase Sapphire card and you want to get your own, be sure to remove yourself as an authorized user before applying.
You are not eligible for a personal Southwest credit card intro bonus if you:
Currently have any (personal) Southwest Rapid Rewards credit card
Received a Southwest Rapid Rewards credit card intro bonus in the past 24 months
The above rules do not apply to the Southwest Rapid Rewards Business cards. There are currently 3 personal Southwest credit cards, so you can only get the intro bonus for one every 24 months.
However, if you want to earn Southwest Companion Pass from credit cards, you can apply for one personal and one business Southwest card.
Chase business credit cards are affected by 5/24 (you can get rejected due to 5/24).
Chase business cards (and business cards from most issuers other than Capital One) do not show up as a new account on your credit report and therefore do NOT add to 5/24.
For example, you can be at 4/24, add a Ink Business Cash® Credit Card, and you would still be at 4/24.
On the flip side, if you are at (or above) 5/24, and apply for a Ink Business Cash® Credit Card, the application would be rejected due to the 5/24 rule.
If you’re looking for the optimal strategy, go for the Chase cards you want first based on your goals (travel or cash back) before any other credit issuer.
The benefit of going for Chase cards first is that unlike other card issuers, most of the core Chase cards have no annual fee product change options to keep your credit history alive.
At the end of the day, we recommend applying for cards that make sense for you and add value based on what you’re trying to achieve.
Credit card issuers reserve the right to close accounts if they suspect any risky or suspicious activity. Most issuers usually send an income verification request before closing your accounts.
In this post, we’ll cover the income verification process and how to avoid a financial review.
A Form 4506-T is a request for a transcript of your tax return. It allows the financial institution or credit issuer to look into your IRS tax returns. Most lenders use the form to verify the self-reported income portion of your application to your tax return.
American Express and Discover are the two main credit issuers who routinely request Form 4506-T to verify your income.
In Summer 2019, Discover started sending out an IRS Consent Form 4506-T to people who requested new credit products, credit limit increases, unusual purchase activity, and high credit limits.
This is concerning because existing Discover customers are also receiving a Form 4506-T when they do one of the actions mentioned above.
American Express usually conducts a financial review of your account when they request a Form 4506-T.
One of the easiest ways to trigger a financial review is to “Check Spending Power” on your charge cards.
I tried playing with the “Check Spending Power” button a few years ago out of curiosity, and I immediately received a financial review.
Another possible trigger for an Amex financial review is having too much credit limit across all your Amex accounts. The limit may vary based on your income, but the general rule is that you don’t want to exceed $35,000 across all Amex accounts. Your mileage may vary.
When American Express conducts a financial review, any questions or inquiries get routed to the financial review department. A financial review can range from 1-3 weeks.
Depending on what Amex uncovers during the financial review, your account may remain unchanged, or they may adjust your credit limits accordingly.
Chase doesn’t usually request a Form 4506-T; my guess is because they’re focused on the prime market, and they’re also a bank. Most Chase credit cardholders are likely to have a bank account or assets with them as well.
Citi and Barclays routinely request a Form 4506-T if they see any suspicious activity.
In my experience, Citi requested a Form 4506-T when I opened a Citi Prestige and another Citi card within two months. I forgot about sending in the form, and it had no impact on my accounts. Citi continued to approve me for future cards.
If you receive a Form 4506-T, you should fill it in to avoid potential account shutdowns.
For Discover and American Express, you risk getting all of your accounts shutdown if you don’t comply with the request. This is not optimal because it will negatively impact your credit score, especially if some of your oldest accounts are with them.
Getting blacklisted from the credit issuers are another possibility.
As someone who visits Las Vegas at least twice a year, I hate paying resort fees. There have been some instances where the resort fees are more than the base room rate. One way to get resort fees waived at Ceasars properties is to have Diamond status with them. Here’s how to status match to Caesars Rewards Diamond status.
Important Update: As of March 2022, the Caesars Diamond Status match is discontinued
A few Diamond status perks that stand out to me:
See more benefits here: caesars.com/myrewards/benefits-overview
Step 1: Request a status match for Wyndham Rewards Diamond Status
The fastest way to earn status is through select credit cards, as opposed to staying 50+ nights at the hotel group. Most of the hotel credit cards that give you automatic status have an annual fee, but they also offer a free anniversary night each year.
If you use the free anniversary night wisely, you can get more value than the annual fee.
For example:
There are a few credit cards that give you automatic status that will match to Wyndham Rewards Diamond status, but my preference is IHG because it also matches to higher tiers at other programs like Best Western. We’ll use IHG in our example.
See the other options that match over to Diamond by clicking on “other hotel loyalty programs.”
Initially, I sent screenshots of my accounts for the status match, and after one week, I had to follow up. It was only after I sent pictures of my hotel membership cards did they approve the Diamond status in less than 24 hours.
Other cards with automatic status that match to Wyndham Diamond status:
Once you complete the status match, the Wyndham status lasts for 90 days. The plan is to request a status match to right away.
Timing is key since once you match over to Caesars Rewards, you’ll have status until the next January 31.
Example Match dates:
If you want Caesars Rewards status for 2021 to 2022...
It’s unclear if you can double dip status matches. For example, if you request a status match before Jan 31, and then another one afterward. Let me know in the comments below if you’ve been able to do this.
Important: To ACTIVATE the benefits and offers for Diamond status, you must present your drivers license or government issued ID at any Caesars property. Offers may take 2-4 weeks to appear in your account after activation.
The Platinum Card from American Express has a hefty $695 annual fee that might deter people from applying. However, there are a few ways to get the Platinum card for less, and potentially down to $0 depending on your situation.
The Military Lending Act (MLA) waives the annual fees for personal American Express cards, but not business cards.
MLA is not to be confused with Servicemembers Civil Relief Act (SCRA), which no longer qualifies for waived fees.
Under MLA, you can get the Platinum (vanilla), Platinum Schwab, or Platinum Morgan Stanley -- or all 3 -- and the fees should be waived.
Before canceling the Platinum cards, you would want a solid foundation of cards with no annual fee downgrade paths to preserve your credit history. Once you stop qualifying for MLA, your annual fees will hit upon renewal. The Platinum cards can only be product changed to the American Express Gold Card and the American Express Green Cards, which both have annual fees.
For non-service members, retention offers are a strategy to recoup some of the annual fee costs.
A retention offer is a targeted reward that’s typically offered to cardmembers who are up for renewal. The intention is to give you an incentive to retain you as a customer.
A few guidelines before asking for a retention offer:
Check out retention offer data points from our community here: https://www.asksebby.com/retention-offers
View our retention offer script in this post: https://www.asksebby.com/blog/how-to-get-credit-card-retention-offers
The Platinum Card has a few variations, including a co-branded Charles Schwab card. It offers the same benefits as the vanilla Platinum Card, but also gives you the ability to cash out Membership Rewards at a 1.25 cents per point rate via Schwab.
You’ll need to have a lot of money with Charles Schwab to qualify for the annual fee credits:
As a reminder, these statement credits only apply if you have the Schwab version of the Platinum card. If you want the Schwab Platinum, you’ll need to apply for it directly (and have a Schwab account).
Find the Schwab Platinum application here: https://www.schwab.com/public/schwab/investing/accounts_products/credit_cards
You can NOT product change from a regular “vanilla” Platinum to a Schwab Platinum. You also can’t product change from the Amex Schwab Investor Card since it’s a limit based credit card vs. “no limit.”
What if you make good money, but aren't at the Schwab level? Enter the co-branded Amex Platinum Morgan Stanley card.
To qualify for the Morgan Stanley Platinum, you’ll need a Morgan Stanley account. The Access Investing is the easiest pick given the reasonable requirement of $5,000. You are paying 35 basis points (0.35%), but this can be mitigated.
I opened an Access Investing account last year with $5,000, and my account is doing fine. Disclaimer: your mileage may vary. My results might not represent the average account holder.
Why is the Morgan Stanley Platinum card interesting? You can get the whole $695 annual fee waived if you meet the qualifying requirements.
$100,000 of spend on a debit card is definitely an aggressive number, but maybe possible if you've been playing poker with friends or paying a ton of taxes.
View the Premier Cash Management terms here: https://www.morganstanley.com/wealth-disclosures/premiercashmanagementtermsconditions_2018.pdf
In early 2020, Morgan Stanley replaced the Premier Cash Management program with CashPlus. If you still have a Premier Cash Management account, you might be able to request a transition to the CashPlus if it’s a better fit.
The Platinum CashPlus will give you a $695 engagement bonus, which effectively pays for the Morgan Stanley Platinum card annual fee if you have:
For most people, the $5,000 in monthly deposits might be easy, but the $25,000 balance might not be worth it since the account doesn’t earn interest.
You’ll need to do the math to see if it’s worth parking $25,000 in the account to get $695 in value. It’s effectively the equivalent to 2.2% APY, which is a competitive rate given the current economic environment.
For people who already have Morgan Stanley Platinum card, there's a big problem. On page 7 of the terms, it says that they will only pay an annual engagement bonus to NEW cards opened in connection with the Platinum CashPlus account.
View the Platinum CashPlus account terms here: https://www.morganstanley.com/wealth-disclosures/cashplusaccountdisclosurestatement.pdf
"You will not receive an Annual Engagement Bonus for an American Express Platinum card not issued in connection with your Platinum CashPlus Account."
Since I have an existing Morgan Stanley Platinum card, I wouldn’t be eligible for the CashPlus Annual Engagement Bonus. There’s mixed comments in the YouTube video we published, so please leave a data point/comment if it works for existing cardholders.
Hilton points are valuable if you’re looking to take an aspirational trip to somewhere like the Maldives or Bora Bora. The Hilton portfolio of hotels includes the Conrad, Waldorf Astoria, and the Curio Collection.
The Hilton Honors American Express Aspire Card and the Hilton Honors American Express Surpass® Card (after $15k spend) offer free weekend night certificates that you can use at almost any property.
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
American Express explicitly states in their credit card terms that you are not eligible for a bonus if you have or had a card.
“Welcome offer not available to applicants who have or have had this Card. We may also consider the number of American Express Cards you have opened and closed as well as other factors in making a decision on your welcome offer eligibility.”
The rule is not based on whether or not you received the welcome offer, but if you have or have had the specific card.
The Hilton Honors, Hilton Surpass, and Hilton Aspire cards are considered three different products. If you received a bonus for the Hilton Honors, you could still get a bonus for the Hilton Surpass.
Another example is if you opened the Hilton Surpass card, closed it after a week, and didn’t receive the bonus. You do not qualify for a new welcome offer because you had the card.
Being an authorized user on someone’s card does not disqualify you from getting the bonus yourself.
Upgrade offers usually appear after having a card for at least 12 months. Due to the CARD Act, credit issuers cannot change the annual fee before the 12-month mark.
Another important note is that upgrade offers usually come with a minimum spend requirement.
Important: If you accept an upgrade offer, you must keep the card open for at least 12 months. Per the terms and conditions of the offer, Amex reserves the right to claw back the points or blacklist you.
The optimal strategy for accumulating Hilton points and free night certificates is to get each Hilton product and upgrade them.
If you’re planning a vacation for 2021 or you’re looking to accumulate as many points and free nights as possible, the following timeline examples are ideal.
>> Feb 2020:
>> Jun 2020:
3. Aspire = Intro Bonus #3
Total = 3x Intro Bonus
>> Feb 2021:
>> March 2021:
3. Hilton Surpass #2 —> Hilton Aspire #2 = Upgrade Bonus #3
Total = 3x Intro Bonus + 3x Upgrade Bonus
If you’re planning a vacation this year and looking to redeem points and certificates right away, then I recommend getting the Hilton Surpass and the Aspire for the weekend certificates.
>> Right now:
Hilton Surpass = Intro Bonus + weekend certificate after $15,000 in spend
>> Soon after:
Hilton Aspire = Intro Bonus + weekend night certificate
If you want to be super aggressive, you could technically get all three Hilton products (Honors, Surpass, Aspire), and downgrade them all after 12 months to the no annual fee Hilton Honors.
You could then upgrade the cards to a Surpass, and then a second wave to Aspire cards. However, this scenario is not realistic for most people since the upgrade offers usually have a spend requirement.
Most people will not be able to spend $9,000 in three months to upgrade to the Surpass (x3), and then another $9,000 to upgrade to the Aspire (x3).
American Express has cards that earn cash back, and others that earn Membership Rewards. Before you apply for a card, there are a few limitations to product changes to keep in mind.
The first one is that you cannot product change a cash back card to one that earns Membership Reward points. For example, you can't product change a Blue Cash Everyday® Card from American Express to an Amex EveryDay® Credit Card.
The second rule is you can't product change a charge card to a credit card. This means that you can't product change the Centurion Card from American Express to an Amex EveryDay Credit Card. However, you can downgrade an American Express® Gold Card or The Platinum Card® from American Express to the American Express® Green Card.
You also can't product change a business card to a personal card. For example, you can't product change The Business Platinum Card® from American Express to a personal Platinum Card. Not being able to product change between business and personal cards is standard practice.
For co-branded cards, you can only product change within their respective group. For example, the Delta SkyMiles® Gold American Express Card can be product changed to any Amex Delta card.
American Express often gives you promotions to upgrade from one card to a higher tier card. It may seem like a good offer, but once you upgrade, you will never qualify to get the welcome bonus for the higher tier card. Amex has a once in a lifetime rule for welcome bonuses, meaning you can't receive a welcome bonus for a card you previously or already have.
With a card like The Platinum card, there's not a free downgrade option. The American Express Gold Card and the American Express Green both have annual fees.
Regarding upgrades, the main reason to do it is if there's an offer attached and if it gives you increased value. For example, if you have the Amex Gold and you get an upgrade offer for the Amex Platinum, upgrading would save you a hard inquiry. I recommend this if you're inquiry sensitive and are applying for a mortgage or buying a car in the near future.
The other potential reason to upgrade is if the welcome bonus for the card itself isn't worthwhile.
American Express has been doing a large marketing push with increased welcome bonuses for new cardholders. Cards like The Platinum Card from American Express and the American Express Gold Card earn Membership Rewards (MR) points.
The value of Membership Rewards points can vary based on how you plan to redeem them. In this post, we’ll go over the best and worst ways to redeem Amex points.
The data points in this post are pulled from the American Express Rewards calculator site: https://global.americanexpress.com/rewards/calculator
The worst way to use MR points is to buy merchandise from American Express. 99% of the time, you can find a better value on Amazon or another retailer.
This method values points at .5 cents points per point (CPP), which is worse than redeeming for a statement credit.
The second worst way to redeem Membership Reward points is for statement credits. A common misconception from people who rush into opening Amex cards is that points are worth 1.0 cents when you redeem for credits.
When you redeem points for statement credit, points are valued at .6 CPP.
For example, if you redeem 10,000 points, it’s only worth $60.
If you want cash, there are some other setups we'll talk about later in the post.
When you link your Amex account with merchants to Pay with Points, the typical redemption rate is 0.7 CPP.
Redemption rates may vary based on the retailer, so be sure to check that it’s a good point value rate before redeeming. Be careful here because some platforms like Amazon can auto-fill that you’re using MR points at check out.
The value of gift card redemption depends on the type of gift card you get. In the screenshot below, redemption values vary.
If you redeem points for an Amex cash equivalent gift card, you're probably getting 0.5 CPP.
For stores like Walmart or Best Buy, you can get 0.7 CPP. Other retailers like Home Depot, REI, New Navy, Banana Republic, and most stores are 1 CPP.
Gift cards are not ideal since there are "cash out" paths that get you 1 CPP to 1.25 CPP.
You can then use that money to buy gift cards at a discount or put it on another card and get points back.
When you book travel via the American Express travel portal, flights are generally worth 1 CPP. Other travel like cruises, prepaid hotels, or vacations are usually 0.7 CPP.
Note: using the Amex Travel Portal is NOT the same as using transfer partners.
If you have the Platinum Card from American Express Morgan Stanley edition, there’s the ability to cash out at 1.0 cents per point to your brokerage account.
Once the points hit the brokerage account, you can cash it out anywhere. In the past, there were not any tax consequences since you already earned the points. It should be considered rebates vs. income.
A few things to consider:
Learn more about the Morgan Stanley Platinum Card here, and how to waive the annual fee.
If you have the Platinum Card from American Express Charles Schwab edition, you can transfer MR points out at 1.25 cents per point into your brokerage account.
The benefit is you’re cashing out points for cash via your brokerage account. A few things to consider:
Platinum Business cardholders can redeem MR points for travel and get a 35% rebate when you pay for either first class, business class, or flights with the airline you picked for the travel incidental credit.
Due to the 35% points rebate, the effective value is 1.5 CPP.
For example, let's say you have a $1,540 flight, so you’ll need to redeem 154,000 MR.
For normal people who want a simple travel redemption, this is your best bet.
One of the benefits of the Business Centurion Card is that you can get a 50% rebate on all flights. With the rebate, you can effectively get 2.0 CPP.
Same idea as the Business Platinum Card, but you get a 50% rebate on all flights.
A $2,000 flight would cost 200,000 points, but you get 100,000 points back. It’s effectively spending 100,000 points for a $2,000 flight = 2 CPP.
The flight rebate benefit is not available on the personal Centurion card.
Finally, the best way to use MR points is to redeem through transfer partners. The main consideration here is you need to do a lot of research for optimal redemption rates.
Points are valued at 1.5–3.0 cents per point. Most partners transfer at a 1:1 rate, but some are at 0.8:1. Occasionally, American Express runs promotions for transfer partners where you can get a higher rate.
See a full list of transfer partners here: https://rewards.americanexpress.com/myca/loyalty/us/catalog/view/ptlanding/?tier=PR
Note: Some of the offers/products mentioned below are no longer available.
Citi has a handful of credit card application rules to be aware of to determine intro bonus eligibility. It’s important to understand the 1/8 Rule, 2/65 Rule, 1/90 Rule, and the Citi 24 month rule.
The Citi 1/8 means you can only submit one application every eight days, and additional applications will automatically be rejected.
For example, if you apply to two credit cards in one day, one of them will be automatically rejected. Wait for 8–9 days before trying to apply for the second card.
The second Citi rule to be aware of is 2/65: 2 applications every 65 days, any additional applications will automatically be rejected.
If you wanted to apply for more than one Citi card, the timeline would look like this:
In practice, the applications should probably be more spaced out, but the dates are used to illustrate the rules.
Realistically, you probably don’t want to apply to that many Citi cards in one year because of the bonus rules, which we’ll cover later in the post.
Citi 1/90 only applies to business cards; you can submit one business card application every 90 days.
Business cards also count towards the 1/8 AND 2/65 rules. Business and personal cards are separate applications, unlike other banks.
Some people have been affected by Citi 1/60; one application every 60 days, but not everyone.
Since people have been able to get around this rule, it may only apply to those who don’t have a banking relationship or a thin credit profile.
You can only have six hard inquiries in 6 months, or else you’ll automatically be rejected. The hard inquiries are not Citi specific.
You can only get a bonus for a specific group of cards once every two years. The 2-year clock is not based off when you last applied for a card; it’s also based on product changes and card cancellations.
Example: If you apply for the Hilton Honors in May 2017, you’ll be eligible to receive another Hilton bonus in May 2019. However, if you product change the card in 2018, it resets the bonus clock, and you won’t be eligible for another Hilton bonus until 2020.
The good thing about Citi is you can freely product change cards from different groups. If you have a Costco credit card, you can product change it to a Citi Double Cash card.
Apply to no annual fee + no sign-up bonus cards first, then go for the annual fee + high sign up bonus cards later.
The other benefit of this strategy is that you are building the foundation for your credit history.
If you're looking to apply for cards like the Barclays Uber credit card or the Barclays Arrival+ card, then this post is for you.
1. The first rule to know is that Barclays does not have any hard rules like Chase (5/24), American Express (once in a lifetime bonus), and Citi Bank (1/24). The main thing to know is that you currently can't hold the card to be approved.
2. There are not any rules on the number of credit cards you can have from Barclays; obviously, credit score and income play a huge role here.
3. If there's more than one Barclays card that you're interested in, you can combine multiple applications into one single hard inquiry for same-day applications. Typically, two is recommended.
4. If you currently already have Barclays cards, they'll sometimes reject you if they see that you aren't using them enough. If you're looking to apply for a new one, it's recommended that you take it out of your sock drawer and start using it for at least one month.
5. Most Barclays cards have no annual fee equivalents. This means that you can get the card with the higher bonus (higher expected value in Year 1) and you can downgrade in Year 2 and keep your credit history alive.
For example, Barclays has the $99 annual fee JetBlue Plus card and the no annual fee JetBlue card. After the first year of having the JetBlue Plus, if you aren't getting positive expected value, you can downgrade to the no annual fee JetBlue card.
6. For most Barclays credit card applications, they typically pull from TransUnion. Depending on where you live and who Chase/Amex pulls, this is typically a good thing.
7. Once you get approved, you have 90 days from the approval date, NOT when you receive the card, for the minimum spend. Be sure to mark your calendar for the date you applied for the card to start the 90-day timer.
8. If you apply for a card and you realize that for some reason, you can't hit the minimum spend to get the sign-up bonus, you can cancel within 60 days of the approval date and receive a full refund of the annual fee.
The hard inquiry still stays on your credit score, but if you can't take advantage of the sign-up bonus, it doesn't make sense to pay an annual fee or keep the card.
9. Sign-up bonuses for Barclays branded cards typically post days after the last transaction that's required to meet the minimum spend. For co-branded cards, it's typically a few days after the statement where you hit the minimum spend.
For example, with a Barclays branded card, if you hit the minimum spend requirement in 15 days, you'll typically see the sign-up bonus post on day 18.
On the other hand, with co-branded cards, if you meet the minimum spend requirement in 15 days, you'll have to wait until the first statement closes to see the sign-up bonus in your account.
Note: Some of the offers/products mentioned below are no longer available.
Active duty service members can benefit from luxury cards without the hefty annual fees due to MLA and SCRA. In this post, we'll focus specifically on Chase and American Express.
Chase and American Express are some of the main credit issuers that will waive the annual fees when you call in. Learn more about how to contact each credit issuer in this post. Here's the step-by-step playbook for active duty members.
Month 0 = Grab any secured or student card
Month 12 = Chase options open
Learn more about secured credit cards in this post or the video below.
The alternative to secured cards is a starter card if you qualify depending on your relationship with the bank and/or income level. Learn more about starter cards in this post or the video below.
Important: You only need ONE secured or starter card. Adding more than one will take up a 5/24 slot.
Chase 5/24 is an unwritten rule that states you can only get approved for a Chase credit card if you have opened less than five credit cards from any issuer in the past 24 months. If you have 5 or more, you will be automatically rejected.
Time for a bad analogy...
It's kind of like a bar that will not serve you any liquor if you have 5 (or more) of any alcoholic drinks in the last 2 hours (24 months in our case).
* ALL: Southwest, United, Sapphire, Freedom, and Ink cards
* Also: Marriott (personal), Slate
Again, after 12 months of having any secured or starter card, apply for a Chase card.
Month 0 = Grab any secured or student card
Month 12 = Freedom or Freedom Unlimited
The ideal credit utilization range is 1-10%. If you need to use more than 10%, I recommend pre-paying your statement before it closes and leaving a small balance to pay off later.
For example, if the card statement opens on the first of the month and closes on the last day of the month, pre-pay 95% of the balance around the 20th. When the statement closes, it will report the 5% utilization. Pay off the balance in full after the statement closes.
If you pre-pay the card (push from your bank) on, let's say, Jan 24 for $399.
When the statement closes (Jan 31), utilization = ~1% (excellent).
However, if you don't pre-pay and you used $400 of the $500 credit limit, $400 / $500 = 80% (very poor).
The reason to get a stater card like the Chase Freedom or Chase Freedom Unlimited at the 12-month mark is to build a relationship with Chase. It's hard to get approved for a premium credit card without any rapport because they don't have a profile on you.
After having the Chase Freedom card for at least 2-3 months, I recommend going for the Chase Sapphire Reserve. The Chase Sapphire Reserve is ideal, but if you can't get approved for a $10,000 minimum credit limit, you might have to get the Chase Sapphire Preferred instead.
Worst case, get the Chase Sapphire Preferred, and when your income increases, product change to the Chase Sapphire Reserve after the first year.
[2 slots left after this]
Chase Sapphire Reserve Upgrade Requirements
1. The card being upgraded must be a: Slate, Freedom, Freedom Unlimited, Sapphire or Chase Sapphire Preferred
2. The card must be at least 12 months old
3. You must have the ability to get a credit limit of $10,000
Side note: You can have multiple Chase Sapphire Reserve cards via upgrades but NOT applications.
For example, if you have a Chase Sapphire Reserve already and applied for another one, it will get auto-rejected.
If you have a Chase Sapphire Reserve + Chase Freedom Unlimited, you can upgrade the Chase Freedom Unlimited to a second Chase Sapphire Reserve.
After acquiring the Chase Sapphire card, you have 2 more slots open for Chase cards. There are a few options. Pick 2 from the list or skip them if the cards don't interest you.
a) Chase United MileagePlus Explorer = Welcome offer + free checked bag + priority boarding
b) Chase United Club = United Club access
c) Chase Southwest Priority = Welcome offer + travel credits + discounts on in-flight purchases
d) Chase Freedom and Chase Freedom Unlimited = Complete the Chase Trifecta
e) Chase Marriott Rewards Premier = avoid; One Lane Rule w/ SPG
After finishing off the Chase 5/24 slots, I recommend moving on to American Express and some hotel keeper cards. The Chase Hyatt and Chase IHG cards are not affected by 5/24.
Chase (non-5/24 cards)
a) Chase Hyatt = Intro bonus + keeper (free annual night)
b) Chase IHG = Intro bonus + keeper (free annual night)
American Express Cards
The obvious choice here is the American Express Platinum card because of the great benefits the card offers.
a) American Express Platinum
b) Upgrade Amex Green or Amex PRG to a Platinum in Year 2
c) Other flavors (Schwab, Ameriprise, etc.)
d) Business Platinum
Some people choose to get multiple variations of the Amex Platinum card. Why? You get $200 airline credits and Uber(Eats) credit per card.
Be aware that you can have as many charge cards as you want, but you can only have 5 American Express credit cards at one time.
Amex 5 Credit Card Cap
Below are a few options for the additional American Express credit cards to acquire.
a) SPG = free night (can be upgraded in Y2)
b) SPG Luxury = BETTER free night + $300 Marriott credits
c) Hilton Aspire = free night (any) + $250 airline + $250 Hilton
d) Hilton / Hilton Ascend = bonuses (can be upgraded in Year 2)
e) Delta Platinum = companion certificate
f) Delta Reserve = BETTER companion certificate + Delta Lounge*
*irrelevant w/ Amex Platinum because you can access the Delta lounge when you fly Delta
