I find myself in the dilemma of whether or not to keep the American Express Premier Rewards Gold card or not now that I have the EveryDay Preferred card.

VS

Premier Rewards Gold

This one is strong for big spenders, as spending over $30K triggers a bonus 15K Membership Rewards points. The earning structure for this one is:

• 3x on airfare
• 2x on gas and groceries
• 1x everywhere else

And the annual fee is $175.

EveryDay Preferred

This one is good for smaller spenders or those that make a lot of “everyday” transactions. I’m definitely in this category. Living in NYC, it’s easy to acquire the 30 transactions a month needed to trigger the 50% bonus this card gives. The earning structure on this one is:

• 3x at grocery stores
• 2x at gas stations
• 1x everywhere else

And the annual fee is $95.

The dilemma

Now that I have the EveryDay Preferred, is the Premier Rewards Gold redundant?

I really don’t spend all that much on airfare. Not as much as the other bloggers, anyway. Certainly not $30,000 a year. As for the other categories: I now get a higher return on the EveryDay Preferred.

The PRG card’s limitations lie in its extreme focus. This card will appeal to a very narrow sector of people. I applaud Amex for introducing a (badly needed) new card to the market. The EveryDay Preferred will appeal to a much wider range of consumers. And, the annual fee is significantly lower at $95 vs. $175.

Why I’d keep the PRG

I’d keep this one ONLY for hitting $30K and getting the spend bonus. Will that happen this year? Probably not. In that case, it’s one to toss. I already have too many cards with spend thresholds:

• The British Airways Visa offers a free companion cert after hitting $30K
• The Hyatt Visa offers a 2 stay/5 night credit after hitting $40K (not worth it IMO)
• The Delta Amex offers 5,000 MQMs after hitting $25K (not worth it either IMO)

So, if anything, I’d like to get that BA companion cert, especially since the UK is starting to re-think their outrageous departure taxes! But really, will I devote that much spending to one card anyway? Probably not. Which leads me to…

Honesty

I know I won’t hit the $30K spend and I don’t spend a ton on airfare. If anything, I’d buy airfare with the Chase Sapphire Preferred and click through the Ultimate Rewards portal to Travelocity to get the same 3 points/dollar, anyway.

Honesty with myself about how much I’ll be spending, what spend I charge to cards, and the value of other spend bonuses has been important, especially since I acquired the EveryDay Preferred card. Realistically, I can make 30 transactions a month a lot easier than I can spend $30K in a year.

Credit cards are a very personal thing, and it serves one to constantly be reevaluating. The “game” changes quickly and we all need to be willing to roll with the punches.

While keeping both cards will help to age my credit history and give me a lower debt-to-income ratio, I simply don’t want to pay $175 to have that privilege. And at a certain point, enough is enough. Especially since, for me, Amex (and by extension, Delta) are on very thin ice with me personally. So thanks for letting me think out loud. I know now that I should cancel the PRG card.

Bottom line

I am thankful for this new card because it has allowed me to ask myself what I want out of my credit cards, and by extension has helped me to re-examine, and get more in touch with, my finances.

I think I will be happy to finally have an Amex card that I can devote a spot in my wallet to. It’ll be right next to the Chase Sapphire Preferred, the Barclaycard Arrival, and the Fidelity Investment Rewards Amex.

My, how the cream does rise.

* If you liked this post, consider signing up to receive free blog posts in an RSS reader and you’ll never miss an update!