How to know its time to break up with your current Travel Credit Card.

What IS the best miles credit card!?

There are dozens of great ones out there, and there doesn't seem to be a clear answer. That's because different people have different needs and spending habits. So, the question really needs to be phrased like this: What is the best miles credit card FOR ME?

Breaking down all of the miles cards out there would make for one lengthy (and boring) article. So here's what I'm going to tell you instead...

How to know when the "travel card" you have just isn't cutting it. (and which one to get instead)

Don't have a Travel card? Read this anyway, it will give you some good insight on where to start.

Ok, Reason one to ditch your current card:

You aren't getting an average of 1.5+ points per dollar on every single thing you buy.

There is no reason in this day and age to not average 1.5 or even 2 flight points on every dollar you spend. Even free cards like the Bank of America Travel Rewards Card gives you 1.5 points on every dollar, no matter where you buy. The Chase Saphhire (My FAVE) gives you 2 points per dollar on restaurants and travel (including your fave hot dog stand, dive bar, lyft and uber and even your beloved STARBUCKS). You get 1 point on everything else, easily averaging 1.5 or more points, unless you never buy food outside of a grocery store. There are many cards that have pretty incentives for a year and then go back to a measly 1% afterward (I'm looking at YOU discover IT card. At least they wised up and give 1.5% on their travel card). This card is a waste of wallet space once that promo is up. Some cards have rotating categories that will give you 5% but you need to remember to "activate" them. This is only useful if the category fits your spending habits and if you actually remember to activate. (For instance, 3 months of 5% for amazon purchases is useless to someone who doesn't shop online much). There are many cards with 1.5% miles on everything or 2+% on categories you actually can benefit from, so if you are getting anything less then its time to break up with your card!

Reason Two:

You can't cash in rewards instantly.

Its 2017, let's get with the times. You shouldn't need to wait for a check in the mail or a point minimum to be reached in order to use your rewards. You earned them! You should get to use them! As much as I did enjoy my Bank of America Card, it made me wait until I accumulated enough points in order to use them, and if I accumulated less than the minimum, I would get a lower percent of points as cashback. Now this was a cashback card, not a travel card, but the same rule applies. Enough companies let you have all of your points all of the time so don't settle for less.

Reason Three:

Blackout Dates and Travel Restrictions

I think credit card companies have wised up to this by now, but blackout dates and other restrictions on when you can use your points are very old school. You don't need to deal with that. Get a rewards card that gives you flexibility. The Bank of America Travel Card, Capital One Venture, Barclay Travel and Chase Sapphire all have very flexible rewards systems. Don't settle for anything less.

Reason Four:

The Signup Bonus is less than $300 (or $500 if it has an annual fee). 

Signup bonuses are important, so make sure you know what the bonus is for your card. If it's a free card you should be getting either $300 or a combination of points and statement credit that would equal $250, otherwise you can do better. If the card has an annual fee then you should be getting at least $400 in perks for singing up. Also worth noting, VIP lounges at airports are not considered monetary perks (at least not to me). It is not saving me money to give me access to something I don't really need and wasn't paying for in the first place. I'm looking at YOU American Express! American Express is a nice shiny card that makes you look important but their bonuses are weak. Don't even bother.

Perks worth noting: Chase Sapphire gives you 50,000 points (equivalent to $800 in Southwest flights or $650 in flights from other airlines) and then another 5,000 for adding an authorized user. Bank of America Travel Card gives you cash and points to sign up. Capital One Venture gives you 40,000 points to sign up and Barclay Travel Card gives 50,000. Don't settle for less.

Reason Five:

The yearly fee doesn't give you any extra perks.

If you are going to pay a yearly fee on a credit card, you need to make sure its worth it. You should be averaging at least an entire percent higher than a free card and you should be getting at least 8x the fee in free travel each year. Here's a real life example. The Sapphire and the Venture both have fees. $95 and $59, respectively. But, in return you get $650 and $400 in travel for singing up and the average of 1.75-2 points per dollar. If you charge $1,000 a month you are getting about $240 in travel plus your bonus.

Example:

Chase Sapphire points per year for person spending $1,000/month: $860 first year, and $210 for each year after. That's 9x your money the first year and 2.2x each year after.

Capital One Venture Card: $660 first year and $240 each year after. That's 11x your money the first year and 4x each year after.

*Added bonus, most cards wave the fee the first year.

Dang! That would make the Capital One Venture the card to beat.

Why isn't it my favorite then?

Well, with Chase Sapphire you can transfer points 1:1 to Southwest Rapid Rewards, which ups the value from $860 to almost a thousand for the first year and $600 each year after. But, if you don't want to be limited to one airline or if you want to use your travel card as a cashback card when needed, the Venture is your best bet. If you are getting anything less than 8x your money for the first year and then 4x afterwards, you aren't getting a good deal.

Some things to remember:

Many Travel cards with great perks require at least good or very good credit. Think 675 and above credit score. I highly recommend Credit Karma for your free score and checking out ways to increase your score.

Closing credit cards can hurt your credit, so if you are going to "break up with your card" don't close it, just don't use as often or at all. Maybe it can be your emergency card.

Make sure you aren't charging more than you can pay off in a month in order to get points. Paying interest defeats the purpose of getting free stuff from your card!

Thanks for tuning in, this is complicated stuff so feel free to comment below if you have any questions!

Happy FREE travels!

-Stephanie