When I wrote earlier this week about closing credit cards that have a fee, a commenter passed along a GREAT piece of advice about whether you and your spouse should both keep the Sapphire Preferred card. I buried that advice about 72 paragraphs deep, so I thought it was worthwhile to pull it out here.
The question came up about whether my wife and I should both renew our Sapphire Preferred cards. The advice was this:
– Only one of you needs to keep paying the annual fee on the Sapphire Preferred. Before you cancel the card, transfer the Ultimate Rewards points from the person canceling their card into the other person’s account (UR points transfer freely between any accounts).
– You and your spouse both get the Freedom card (which has no annual fee). The Freedom card earns Freedom points (which are good for cash back), but they transfer into Ultimate Rewards points if you have a Sapphire Preferred or Ink Bold® Charge Card card. Each of you puts the 5% bonus category spending on the Freedom card.
– Make your spouse an authorized user on your Sapphire Preferred account, and they’ll get a card on your account so you can both earn those double points on travel and restaurants.
– Whenever you want, the Freedom points in one person’s account can be transferred into the other person’s Freedom points account. And those points can be transferred to Ultimate Rewards.
Voila – you and your spouse both earn Ultimate Rewards points AND maximize the 5% bonus on Freedom bonus categories (which then become Ultimate Rewards points). Remember – if you each maximize the $1500 spend on the 5% cash back quarterly bonuses, you’ll be looking at an extra 48,000 UR points a year (60,000 bonus points minus the 12,000 points you would’ve gotten had you put that spend on the Sapphire card).