Travel credit cards, cash back credit cards, and no fee credit cards had been improving for years, then things changed. Could it be that we have hit the best of what credit cards and credit card benefits have to offer?
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42 comments
Good video, Waller. Maybe this virus will encourage banks to give better benefits for travel cards, to drum up demand. Love your idea for customizable cards. I have the Citi AA Platinum Select World Elite Mastercard ($99 annual fee), but if AA & Citi are listening, I'd pay $600 annually for an AA World Elite Mastercard that gave all the following:
Admirals Club Membership; 3x earning on AA spend, 2x earning on gas, dining, hotels & general travel [including other Oneworld airlines or AA partners, but excluding all other airlines, of course], 1x on all else; TSA/Global Entry Credit; Priority Pass; no foreign transaction fees (duh); Gold (preferably Platinum) elite status with AA [and Oneworld Ruby or Sapphire status]; and either an AA credit, companion pass, or Elite Qualifying Dollars match after sufficient annual spend.
Do that, and I'll happily pay an AF equivalent to $50 a month, and I'd use it for the vast majority of my spend. Oh, one more thing: 2 free checked bags, both domestically and internationally (for up to 5 people [10 bags] domestically, 2 people internationally), and priority boarding (AA Group 4, preferably Group 3).
Really great video! I think we are at peak for current cards. However, some company will come out with something we have never thought of before and it will change the game. Then every other company will try to emulate/improve upon until it reaches the peak (think cash back vs points). I would not be surprised to see more customizable cards like the Cash Plus.
I believe that after Chase destroyed the CSR, BofA and Capital One should take advantage and offer a premium credit card with new perks, maybe with a $250 – $400 anual fee, thats something I might be interested in
Is the dinner club carte blanc still a thing
I'm a straight cash back guy. Points are a hassle. And with cash back, I never miss a "benefit" they design to make it hard to collect. I have three AmEx Blue cards and I can get an average return on spending, less fees, of just under 4%. I really can't expect more. I don't even count the Discover 5% categories. I'm satisfied. I would like to be able to do this with a single AmEx card, but this is how the game is played.
However, I put myself to sleep designing the perfect AmEx card. Problem is, I need three.
Yeah it is very boring when companies copy each other!!
Love the topic and your idea on a customizable card!
I purchased a condo in 2001, at age 22. My baby boomer realtor told me about all the benefits of having a rewards credit card, and you could use the points towards household goods, like a toaster or stereo. She was certainly ahead of her time, but Instead, I went for the 1% cash back, Citi Dividend. Fast forward to today, and I'm pleasantly surprised with today's peak. Too much variations in rewards will allow us to game the system, the same reason grocery stores mirror each other with milk and eggs as a loss leader. It will be interesting to see how defaults could tighten bank's belts, or desperate travel partners might incentivize them.
In my opinion, the problem with the financial institutions, in general, are HEAVILY regulated by the FED. if they let them loose and the free market takes care of it. I believe the sky is the limit.
Maybe Amex will surprise us with their two new cards that are coming out
Another great video Dustin! Love the topic as well. I would agree with you that the cards have hit a plateau. Maybe this virus will shake things up.
First off – Great Content and I hope this message finds you and your family safe and in good health. Now I predict that banks in the future will offer significant benefits to cardholders, however I believe that banks will ask for a greater level of commitment from their customers. For example benefits could be doled out like this: tier 1 benefits (credit card holders), tier 2 benefits (card holder and a savings/checking acct with a minimal acct balance), tier 3 benefits (credit card holder, bank acct and mortgage with bank) and on and on. I think the goal of the banks will be to have customers to centralize all or most of their financial needs thru a single bank/financial institution. The nature of the benefits will depend more on regional and local needs/wants of the customers. Examples might include: access to recreational activities (Family fun park) or free or discount access to local gyms or hair stylists or perhaps exclusive dining or other entertainment venues. I also believe that the benefits to customers will be decided and delivered at the branch level (the local banks). This will serve to solidify the relation between customers and the financial institution. I apologize in advance for any typos.
I think it would be neat to see a crossover partnership card with an airline and hotel pairing. Like I know United and Marriott used to have that partnership where you could redeem Marriott points for several nights and get a bonus mile kickback. The card would have a perk where once a year, instead of a free night, you can choose among a variety of packages that are steeply discounted and include flights and hotel, maybe even with some kind of unique experience. Maybe have a spending threshold like $10-15k to earn another package. It’s a premium card, but includes mid tier status with the hotel as well as expected airline perks. Hotels are luxury properties and air tickets are domestic first/international business.
I have been looking at the Alliant Cashback Visa® Signature Credit Card 2.5% non-category card with AF of $99 and first year free. For cash back card I think this card is the ultimate CB card on the market w/o cat/restriction. What are your thoughts on this card?
Agreed. I feel like alot of these banks are just copying what the others do. Great content. Just subscribed 🙌🏾
Great insight on this video. Enjoyed it!
Thank you for this video, I was wondering if the high end cards like platinum & reserve will be offering a nice retention offers considering that there is no point for you pay $550.00 a year when you are not able to travel, or least issuing a credit for the travel portion that you were not able to use due to this ongoing situation
Industry has deff hit a Plateau been saying that for a long time it’s the same Shit no outside the box or innovative thinking
I think that even though they are reaching the peak there is always room for improvement, like. Adding temporarily usable perks since you are not traveling.
This is why I have a somewhat different perspective on cards. To me, the way to maximize your return is to go for cards that offer premium benefits which are difficult to use, obscure, require some legwork, etc., rather than cards that just offer the best redemption rate. With an "easy to use card" you are just going to get that percentage return and that's pretty much it. You can't do much better because there's a ceiling to how much the banks charge in interchange fees. A card like the American Express Platinum card, on the other hand, has a ton of perks and features that most people never use or find too difficult to use. And that means those of us who DO put in the legwork to use them are going to get the benefit of extra value which comes from the fact that other people don't use these features that often or don't even realize they exist at all. Now the pandemic has screwed with some of this (I can't use the Uber credit right now, as I'm even avoiding Uber Eats), but I have in the past gotten amazing value from the concierge, getting restaurant reservations and recommendations that resulted in fantastic experiences while traveling. Also got a replacement card FedExed to me when my son lost it (long story), while I was abroad. I max out all the credits (except this year, with Uber), and I actually like the fact that it's a bit harder to use these credits, because it brings my effective AF down to a very low level. And I have utilized the lounge benefits with Delta multiple times (until I had to stop flying altogether!)
When I add up all the benefits and credits I get with that card, plus the peace of mind that comes with things like emergency medical evacuation and so on, it's a no brainer. Same goes for the Sapphire Reserve — Hyatt is such an incredibly valuable partner and I've gotten ridiculous value with it. Just having Hyatt points I can use to get decent hotels in a lot of cities all phases of the year for a reasonable cost, even at peak times, is an amazing benefit. Given that at certain times hotel rates are so high that any cash equivalent benefit would still be resulting in rates I wouldn't want to pay — it's a powerful incentive to keep earning with those cards even though it's more difficult to use the benefit optimally.
Everyone in front of me at the register is using a debit card. lolz
I appreciate your video since it makes us think about how things can be improved! Not too complain about other channels, but while others are talking about the same “stimulus check update,” you’re out here producing top notch work 👌 it helps discussing things outside of the current situation. Keep it up!
We passed the peak. The reserve was an over the top losses leader. Chase is now pulling back and capitalizing more off 5/24 and th at you have to go with them first to optimize the points game.
Amex is stepping up, so they may push the envelope, but I don't think chase will counter… And quite frankly I think Amex knows that.
At most we'll see little tweaks here and there, but we won't be seeing a 100k csr sign up bonus for a long time, if ever.
So yes we have seen peak cc a while ago.
I would like a bonus ticket to Coachella or VIP field access and seating at NFL games.
Lower vendor fees will also drive down rewards and maybe physical cards going away.
I agree with you. I think its hard for banks to make profits when they offer unique benefits, because they can acquire common benefits in bulk and with discount from partners.
If things stay as they are, I'm perfectly fine with that outcome. My 4 card setup can be switched to cash back or travel easily.
The custom idea is the best idea You could pick your multiplier categories at different af price ranges
Hey Dustin. What do you think of Citi prestige changing things up?
This was a very cool video, you know I was wondering about The Diner’s Club credit card—is that credit card still around—and if so is it a credit card worth getting? Do you remember this card? What do you think of doing a video essay on what’s going on with Diner’s Club cards?
I hope we haven't seen the peak. I think that idea where the consumer gets to customize their card would be awesome! Great idea for a video. Take care Dustin.
Video on southwest devaluation please
Say it ain’t so Dustin, say it ain’t so!
I don’t think we’ve hit the peak. In fact, I wouldn’t doubt it if we were closer to the bottom than the top. The credit card market is growing and competitive. I agree benefits are getting redundant, but eventually an issuer will come around with a creative benefit. With the subscription model being very popular today that alone presents a variety of benefits to offer. Everything from streaming services to car washes come with subscriptions nowadays.
You have said a mouth full. I agree..credit card company are no being creative. 👍
A start is to just broaden what the portals can do. Navy Fed points are 1 cpp, but it applies to recreation and other events. We don't need fees and credits for everything like some 1990s coupon booklet.
Well guys, it was a nice ride while it lasted. 🙂
3% on Medical expenses would be innovative an and very useful, especially if it included pharmacies.
US Bank was pretty creative with the mobile wallet multiplier. I haven't seen any other card with that bonus.
If I were a bank, I would think about innovating around the stay at home economy… With travel points essentially unusable in the near future, airport lounges becoming not an option, alot of people may have a sudden change in priorities from travel to home essentials… What about "stay at home benefits"…
A few that come to mind: high earning rates on online shopping and home dining delivery… home improvement and furnishings as a redemption options… Free streaming services that come with an annual card renewal… Imagine if Chase came out with a Disney Reserve card that came with a Disney+ and Hulu subscription, discounts on purchases of Disney merchandise… Or if the Amex Platinum came with free HBO Now subscription…
There is another huge untapped spending area in this stay at home economy: video games and hobbies… I could see a bank targeting the stay at home demographic by introducing perks for gamers in a targeted niche card – high earning rates / redemptions on video games and streaming services, unique exclusive content available only to card members etc… You could even have a "virtual lounge" or virtual concerts or events on twitch for members…
Also everyday houshold spending. A card like the Amex everyday could try adding a home utilities or internet cable bill earn rate, online shopping options, or add perks for delivery services like Instacart for example
I think we have reached the peak with the AMEX Gold being the last of a dying breed, but I hope I'm wrong 🙁
Yes I think we've hit peak. However, there is room for improvement. The CSR annual fee increase was unnecessary unless they'd added something different like 4x on dining or another category like 3x at grocery stores.
The banks can give ever increasing bonuses and earning rates as long as they keep tormenting small businesses with higher interchange rates. The rewards we earn are paid for from businesses that accept credit cards. The banks are taking from Peter to pay Paul. We have not reached peak because there is nothing a business can do to counter high interchange fees.