Jeffsetter Travel

Travel Consultants and Travel Tips

My 2020 Credit Card Strategy

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With a New Year upon us once again, it’s time for me to share my 2020 credit card strategy with you all. Just don’t expect too much variation from last year.

I was going to post this back in January, but then the Chase Sapphire Reserve annual fee change happened. Then, I got busy ranting about other stuff and basically forgot to update this post. So, even though we’re at the tail end of Q1 2020, here’s my 2020 credit card strategy. Better late than never, right?!

What’s in my Wallet

I begin the year with a fairly similar collection of cards in my wallet as the previous year:

Other cards currently in my possession, but not in my wallet include:

  • American Express EveryDay
  • Citi AAdvantage MileUp
  • Citi Double Cash
  • World of Hyatt Visa Signature
  • American Express Hilton Honors
  • Hawaiian Airlines World Elite Mastercard

I don’t anticipate obtaining any new cards this year. Rather, I may continue my trend from 2019 of eliminating cards. And, as I’ve been saying for at least a couple of years now, the Hawaiian Airlines World Elite Mastercard tops my list for cards to get rid of. In fact, I don’t even know where my physical Hawaiian World Elite Mastercard is at my house lol!

My 2020 Credit Card Strategy

What I Pay in Annual Fees

Since we’re on the topic of annual fees, this is what my current fee load looks like:

  • Chase Sapphire Reserve = $550
  • American Express Gold = $250
  • Hawaiian Airlines World Elite Mastercard = $99
  • American Express Hilton Honors Surpass = $99
  • American Express Marriott Bonvoy = $99
  • World of Hyatt Visa Signature = $99
  • Marriott Bonvoy Premier = $85
  • Alaska Air Visa Signature = $75

My total annual fee obligations stand at $1,356. However, the Sapphire Reserve returns $300 in annual travel statement credits. While the Amex Gold gives $100 back in annual airline fee credits. Because I use both of those every year, I tend to look at those card’s annual fees as a net of $250 for the CSR and $150 for the Gold. Yes, the Amex Gold does also have a $10/month credit valid at certain restaurants, etc. but it has very little utility for me.

That brings my net annual fee down to $956. That’s still high, I know. So, I’m considering dumping the World of Hyatt Visa, as I don’t use it or its certificate, as the certificate is virtually useless to me. And, of course, I really want to get rid of the Hawaiian Airlines World Elite Mastercard. That’s another $198 I can save.

Barring any significant changes in benefits, the Alaska Air Visa Signature is remaining in my wallet too. I love the companion certificate benefit, as well as their checked bag benefit. Both of which more than offset the annual fee for the card. But, Alaska Mileage Plan’s future is a bit ambiguous now, as Alaska once again pursues a closer relationship with American Airlines and joins Oneworld.

Spending Strategy

For this year, I’m going to keep the same strategy as I have for the past few years now:

  • Sapphire Reserve = travel & dining except as noted below
  • Freedom = all quarterly bonus categories
  • Hilton Honors Surpass = all Hilton spend + gas when not a Freedom bonus category
  • Amex Gold = grocery stores + certain restaurants that code weird
  • Marriott Premier = all Marriott spend + reimbursable expenses + certain large purchases
  • Alaska Air Visa = all Alaska Air spend
  • Freedom Unlimited = everything else

Admittedly, my strategy is a little different this year. Thanks to Southwest’s arrival in the islands last year, I’ve come to value Ultimate Rewards more than Membership Rewards. That’s because UR points transfer to Southwest Rapid Rewards, which allows me to very inexpensively do some island hopping. As a result, all dining spend got moved back to my CSR from my Amex Gold.

There’s one caveat to the above plan too. I need to requalify for Marriott Bonvoy Platinum at least once more for 2021. By doing so, I attain the 10-year minimum to receive lifetime Platinum status. So, depending on how my EQN earnings go this year, I may need to shift more spending on that card to close the gap. Is this a fool’s errand? Perhaps. Especially because of the untrustworthy dumpster fire of a program Bonvoy has become. But, I’ve gotten this close, so why not cross that finish line, right? That’s my thoughts on it, anyway.

My 2020 Credit Card Strategy, Final Thoughts

See, despite some minor tweaks here and there, there isn’t a lot that’s changed regarding my strategy. Is it the best strategy for earning massive returns? Nope. But, that’s not really the point. I’m through chasing value maximization. All I want to do is use my points and miles to experience the things I want to experience. So, I’ll use my cards with that in mind. Oh, and to achieve my goals, even if they don’t make a ton of sense.