Description: The article below mainly concentrates on the topic which is about costco citi visa login. The author is going to talk about some downgrade options as well as the major perks for a city prestige card and analyse what cards make the most sense and what the optimal strategy is.
It’s Sebastian from SMB, today we’re going to talk about some downgrade options for a city prestige card, but first, if you are new here, we’re all about how to maximize the value for credit cards, so how to get the most cash back and also how to travel for free and that sounds interesting, subscribe to our Channel.
Let’s get started, in the past, we did a video talking about how City is getting rid of a lot of its perks and how it might make sense for certain people, they either downgrade their card or against it, so I’m in the same boat and I’m basically trying to figure out what to do.
I want to share my thought process of you, so normally, I’m telling you what cards make the most sense and what’s the optimal strategy, but a situation like this, there is no right answer, you can pick any option and also workout, so instead of me telling you what makes the most sense, today I’m going to flip the script, so you are going to tell me what you think.
The first thing we need to figure out is whether it makes sense to keep this card, so the annual fee is four hundred and fifty dollars, there’s a 250 dollar travel credit, making it two hundred dollars, but the really interesting thing for me at least in my situation is that I signed up for the card about $350 annual fee.
So I went into a branch and asked for the 350 offer and they did it again, the way I got the lower annual fee was that I went to a branch at Chinatown and asked for it. so I guess they’re more flexible or they’re more willing to give you the lower rate.
I tried the same thing initially at a financial district 1 and they basically said no, it’s $450, but I read online that you can basically try to hang up and call again to get the lower rate for me, there are 3 major perks, so the first one is 4th 9 3, when you book a trip that is at least four nights long, you get a statement credit worth one of the nights, the average price of the nights.
So it used to be a lot better, because it used to be based off only the last night’s rate, so you could do some tricky stuff in order to basically optimize it to make sure that the fourth night was an expensive night and now it’s going to be the average price.
The next benefit is 3 hour trip delay insurance, so it’s great, because if your flight is delayed by 3 hours, you get $500 to work, signing this works out well, if you live in a place that has a lot of delays or you like to travel during busy times like Thanksgiving, the reason why this is a great perk is that it’s a lot better than its competitors.
So the tree sapphire reserve has a six-hour trip delay insurance and the American Express Platinum Card has no Helene’s earn, the final benefit is that if I don’t do a product change our counselor card, I’m not resetting the slot for Thank You points, so city is very particular in how their work bonuses.
So if you have gotten a card within a same product group in the last two years, they will not give you the bonus, you have to wait at least two years and the thing is that it’s not based on getting cards, it’s also based on cancellations and also product changes.
Since I got the city prestige in September of 2016, I’m going to be eligible for another thank you card bonus, so they have a lot of different cards that fit this category in September of 2018 by doing your product teams now, it means that I’m going to reset the clock meaning that I won’t be eligible for another bonus until 2019 whether where’s the card, it depends on what annual fee I have and whether I have any retention offers.
So if I Collins who basically do a prior change and they offer me points that make sense, then it might make sense for me to keep the card, because if I’m paying an effective annual fee of $0, there’s no reason to do anything as $100 effective annual fee.
I think I’m going to keep this card as $200, it depends on whether I do all these two trips, so if I do two of these for nitrix for the fortnight for you, then I can at least break even up the card, so that makes sense for me, but even then, I typically don’t do that many long trips and even if I do one and I typically travel to different cities, I don’t stay in one specific hotel for the whole duration.
The trip to my insurance is nice, because you can get lobster and steak for free, but it’s hard to quantify that, it depends on whether you end up getting a delay in terms of downgrades, three cards I’m considering, it’s a double cash card, the dividend card at the Costco card, we’re going to run through different pros and cons of each one with the double cash card.
The major benefit is that you get two percent bags on all of your purchases, but that’s about it, you get all the same other benefits that you get with other city cards like rewind since you get that of all these other cards, you can’t consider it, because it’s consistent.
The major disadvantage is that it doesn’t pin to my flow of cards, so most of the cards, I have do earn me at least 5% or more in value, so since it’s only 2% here, it’s a lot less and I’m either using something like the freedom card or Discover Card for topics packed.
Since I value those points at a higher rate, Arthur’s cash back match, it’s typically around 10% return on spend for non categories spend either using a travel credit card using the Chase Sapphire reserved for dining or I’m using other credit to hit minimum spend where I’m getting 10 to 50 percent return on spend.
Another major consideration is that I can turn one of my freedom cards into a freedom unlimited card to get 1.5 expect on all my transactions and given how I value chase points, that’s between 2.25 to 3% per turn on my spend.
The next option is a dividend card and this one’s a bit interesting, because it’s no longer available for applications, so the only way to get it is to do a product change, it’s a 5 X category card and I like this card, because I like optimizing and the cool thing is that it’s unlike the discover it card in the freedom card, because the cap is based on the whole year and not based on specific quarters.
Those two cards are capped off at $1500 per quarter, so it’s only two of these quarters applied to you, then you’re not going to get as much value, what’s the dividend card, there is an annual cap, but there is no quarter cap, so you’re still getting $6,000 of spend at the 5x.
But if there is one specific order, that is beneficial for you, you could do all your spend towards that one, the major disadvantage is that the rest of the quarters for this year don’t look that great, so if I could have gotten the card in q2, that would have been great since there is Walgreens well for our greens.
I could have gone gift cards to Amazon or Chipotle or anywhere else, I want the final option is the Costco card and you get 4% back on gas 3% back on dining and travel 2% back at Costco and 1% are for where else, it already has a Costco membership, there is no annual fee, so a lot of people like to think that this has an annual fee, because technically you do need a Costco card to get it.
But since I’m already paying for a Costco membership, I would have otherwise already done, that’s what some cost for me, so it has zero annual fee, the final benefit is that you get two years of extend a warranty, whenever you shop at Costco, the major disadvantage of these ones apply for me more than you probably is that since I don’t have a car, I don’t have the paper guess the 3% back from dining in trouble is nice.
But since I have a chase fi reserved, I’m getting 3x points back and for me, the points that we’re four point five to six percent return on spent the 1% back everywhere is normal for most cards, so I’m not considering that at all, so the big benefit is the 2% back at Costco, 2% back at Costco is nice.
But if you’ve had a discovery card, wholesale clubs has been a category on their 5x calendar for pretty much the last year, if you’re in the first year of your discovery card, you’re getting 10% back up cash back match I loaded up on enough cost to a gift cards.
I’m probably going to be fine next year and again a lot of people like to say that, you get 2% back what the executive membership, this makes it 4%, because you get 2% here with this credit card, but that 2% from the executive membership is independent of your getting this card.
If you have the executive membership, you’re getting 2% back, so the sunk benefit, so it’s separate from this card, if the Discover card you’re getting 5% or 10% back plus 2% from the executive membership with a city cost to a card, you’re doing 2 percent plus 2%.
It’s disadvantaged and this one relates a bit more to the benefit I mentioned is that Costco already has great return policies an extended warranty, so an extra year doesn’t make a difference especially when they’re willing to take a lot of different things back.
A few people return to use camping equipment, I have seen them return ten year old vacuum cleaners, so I don’t think that extra year extended warranty makes a difference, given these options, I think I’m either going to keep the prestige card or gone Greeks that dividend card the double cash card that Costco card are good, but for my spending purposes, they don’t make sense.
I think if I had a card, the Costco card will be higher up on the list, given that, you get 4% back on gas and that’s amazing to take away, there are no right options, there depends on your circumstances and which ones make more sense for you.
So I hope that was helpful, let me know if you have any questions, my question to you is which of these options would you take or would you keep the city prestige card? Let me know in the comments down below if you like it, I will see you next time.