Let’s talk about geeking out on credit cards…again. As I pointed out in My Credit Cards are Better Than Yours, I’m a big fan and user of the Chase Sapphire Reserve card for almost anyone who jumps on airplanes at least twice per year. But if you’re partnered while maintaining separate finances, there may be a significant divide-and-conquer move to make with your credit cards.
Quick refresher on how the rewards work with this Chase card, and the primary reason I have it – For every $1 I spend on that card in the categories of dining and travel, I get 3 points (like 3 cents). And when I book a flight using these points, those 3 become 4.5 due to a 1.5x bonus feature. That means that if I were to spend $10,000 on hotels and restaurants in a year, I would have the equivalent of $450 that I could use to buy an airline ticket. So, I view that as getting a 4.5% reward. I’m on a plane at least twice per year so these rewards will never go unused. In short, it’s cash, to me. And traditional cash-back cards don’t generally offer more than 2-3% except in very specific spending categories, such as groceries.
My Chase card, as with most, comes with a laundry list of other benefits (discounts, credits, rewards). One of the Reserve card’s big rivals, the AMEX Platinum card, also has a fantastic rewards list, but it doesn’t make sense for me to have two cards (due to the big annual cost of each, and some overlapping benefits).
However, my partner’s loyalty to Delta just took a hit when Delta changed their rules to make getting elite status quite challenging for all but the super wealthy. So, it was time for Eddie to stop using his Delta credit card and become my credit card tag-teamer by getting the AMEX Platinum card. This way, I could share in some of the rewards that his card offers and vice versa. We aren’t married and mostly keep our finances separate (no joint credit cards or savings accounts, so whatever points we earn, we spend them how we want). The tag-team element is about sharing in the cards’ many benefits, not the cash-equivalent points that we’ll each use to pay for our flights.
Sharing Rewards
Let’s look at some areas in which this tag-team move will help us. Eddie’s AMEX comes with a $240 annual credit that can be applied towards a streaming services bundle, and $200 towards Uber rides. My card includes a subscription to DoorDash and Lyft Pink. Eddie gets a $200 hotel credit each year. These are all expenses we’d likely incur and split anyway, so having two cards expands how much we both save. It’s a divide-and-conquer tactic for geeking out on small savings, without having to think too much about how to do it.
There are also experiences from which we can mutually benefit, that could have a significant value, financial or otherwise. What if there’s a big concert that we expect to sell out fast? Eddie’s AMEX card will get us access to the occasional pre-sale, which could save us hundreds of dollars if it sells out fast and hits the secondary market at a premium. And there’s the airport lounge access! Eddie’s card trumps mine when it comes to lounge access – the Delta Sky Club and Centurion Lounge!
The Points Dilemma
Sharing in rewards doesn’t fully solve another issue. One day, at Whole Foods, Eddie did the usual “I’ll get it” and paid the bill using his Delta credit card, which would only give back a 2% points reward. But, the reward would be fully his, since trying to share the rewards isn’t practical for us. My Amex Blue Cash card gets me 6% cash back (on grocery purchases). Let’s say we were really stocking up and spent $300, Eddie would get $6 if he used his, but I would get $18 if I used mine. Together, we’re leaving $12 on the table – that’s a Blue Bottle coffee date! This was madness. So we made a deal.
I would pay for all of the groceries, then use the reward money for dinner date nights once or twice a year, “sponsored” by my Blue Cash card. This way, we are using the card that gives the best reward, and then sharing it in a fun way, without the need for Eddie to get his own Blue Cash card (which comes with an annual fee). Since I’m the foodie in the family, I’m always present for the grocery shopping, but if you’re in a relationship where you may shop without each other, consider adding the 2nd partner as an authorized user to ensure you’re getting 6% back every time.
If You Must Choose One
If you are not partnered and simply want to know which of the two cards is best for you, check out The Points Guy, who gives a full breakdown. The Chase Sapphire Reserve card usually wins by a nose (again, for spending in the dining and travel categories). Yes, there are many other very valuable cards, but I am simply not a fan of cards that require loyalty to a product (Airlines, Costco, Hotel chains, etc.) I never know where I’m going to fly or if I’ll be using Airbnb or a hotel. These cards ensure you don’t need to worry about that.
Is It Worth All the Fuss?
In the end, I can’t tell you how much more each partner walks away with in cold hard cash-equivalent value, by tag-teaming your credit card game. By my estimates, each partner should at least receive a few hundred dollars in cash savings, plus another few hundred when you assign a value to experiences. What’s it worth to score the best seats in the house for your favorite band or to relax in an airport lounge when the terminals are jam packed? It’s somewhere between nothing and priceless – up to you to decide.
Cheers,
Barrett
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