Which Credit Card Bonus to Pick?
Everyone has a different amount in mind when signing up for a new bonus. I try to aim for a value of at least $300-$400 per card up front. That's when it gets a bit complicated, since everyone assigns a different value to miles and points.
As I mentioned earlier, one person with a flexible schedule can usually get much more out of a 50,000 miles bonus than I can with my family of 4. A single person can usually find one award seat on a flight with no problem, but it gets trickier the more people you have. I have given my opinion on the value of miles and points, though it's only an opinion. So let's look at three card offers, and assume you will only pick one to sign up for the next year or so. Keep in mind, offers change constantly, so it may not be accurate as of now.
1) Barclay's US Airways card with 40,000 miles bonus after 1st purchase and $89 annual fee, not waived.
2) Chase Sapphire Preferred Visa with 40,000 points sign-up bonus after spending $3,000 in 3 months, which can be converted to $400 cash or $500 toward travel. First year annual fee waived.
3) Chase IHG Mastercard with 80,000 hotel points sign-up bonus after spending $1,000 in 3 months. First year annual fee waived.
I mentioned before that I value IHG points at 0.5 cents and airline miles at 1 cent. It seems the debate should be between number 2 and 3, with Chase Sapphire Preferred being the winner, since cash can be used for anything, unlike hotel points. Well, yes and no. You see, even though 40,000 miles are worth $400 by my metric, and actually $311 after deducting the annual fee, this card will be discontinued in a year or so. US Airways are merging with American Airlines and the card will not be issued anymore.
So I would argue, in this instance, it makes more sense to go with choice number 1, because the other cards will still be there later. By forgoing this card, you will have an opportunity cost of $311. Maybe it’s overcomplicating things, but I always try to look at the big picture. Even though I have no use for these miles now, I know I will use them in the future at some point, when they become AAdvantage miles. That said, I got all 3 cards!