A Very Boring Post of CC Reward Calculations

   

     I realized I might be leveraging my credit cards wrong if I want to use to reduce travel costs. I have used my Delta AmEx card for travel but have still been using the Unlimited Cash Rewards Visa  for other day to day expenses and scheduled payments with no fee. I figured the cash back was nice as it could be used for anything which still is true. However, I get a straight 5 miles for every dollar with the AmEx, any purchases, calculated out that comes to an average of 4.5% reward per dollar for future flights. I figured this out by looking a variety of flights using pay by cash or pay by mileage. Sometimes the return in points came to nearly 7%, but was also as low as 2%. It's complicated that certain flights can be purchased with fewer miles proportionate to $$ value. For example I looked at a flight that was $299 or 40,600 miles, but another that was $387, was 41,500, and yet another was $229, but could be bought with a mere 16,500 miles. The Unlimited Visa Rewards is 1.5-3% depending on the purchase type or if there's any "bonus" periods, but I just use 1.5% as the straightforward norm.

     Now of course the Delta AmEx mileage would only be used on Delta Flights, whereas I can shop around and maybe get less expensive flights like I did with Greece. However, it's likely at least one trip a year I'd use Delta because those I travel with tend to be Delta loyalists due to their own rewards programs or work accounts. My Delta AmEx though has a $99 per year fee, but I get free checked bags, so that fee is off set with just one trip. Often the cheaper airfare come with exorbitant baggage fees, including charging for carry on, which for longer trips must be factored in. This playing the rewards game is tricky. But if my math is right, if I transition to Am Ex starting in August, by the end of the year I'll have an additional 36,000 miles, which roughly translates to $350 in Delta flights, but cash rewards through Visa would be in the range of $136. 

      I had a younger coworker who thought she had mastered the game. I got a few recommendations from her on the cards and perks and will calculate out to see if upgrading my current Delta card is worthwhile. Her husband is Irish so they travel internationally at least once per year so she both accumulates miles with flights and spending. They prioritize travel over just about every other consumable too, and regularly take spur of the moment long weekend trips based on pop up deals. Her card gives her lounge access so they factor that as the start of the trip, enjoying a leisurely light meal and drinks.I got in on that with her once on a work trip and once with my sister. It felt like a whole different lifestyle for me who packs an empty water bottle and granola bars.

     I plan to do more domestic and international travel, so learning every tool to help is important to me, but I don't want it to be such a mental gymnastics exercise that I just end up stressing myself out. If travel and credit card hacking is your niche feel free to share your recommendations with me either in comments  or email me at samandcoffee65@gamil.com.