Credit card strategy

[Travis]

43m, separated, one teenage child. Trying to figure out credit cards to retain, cancel, or pursue.

Expenses: $5000-$5500/mo, $2000 of which goes on credit cards

Currently:
Chase Sapphire Preferred: Everything other than food and fuel goes on here. $95/yr fee
Chase Freedom Unlimited: Formerly a CSP. Downgraded a long time ago and still active, though not used.
Chase IHG Premier: Haven't used it in months. Don't travel for work anymore and haven't traveled for pleasure in a year. $99 fee waived from being military, but will probably start up later this year because I retired
AMEX Blue: All groceries and fuel on here. 6% cash back groceries (except Sams/Costco), 3% fuel. $95 fee waived, but will probably restart later this year.


Sitting on 190k Chase points and 89k IHG points.

I have no idea when I'm going to travel again. Divorce still in progress and income limited until I get a new job. I'm not a fan of paying annual fees on travel cards when I might not go anywhere until next summer at the earliest. The CSP fee is due in November. I figure Chase and AMEX will hit me up for fees for the others this fall when they go through their records and see I'm not on active duty anymore.
Possible scenario:

Upgrade my Sam's membership and get their card for 5% on fuel and 3% on Sam's purchases. Will spend at least $4500 this year at Sam's for groceries and up to $1000 on fuel.
 
As far as benefits go, the CSP isn't doing anything for me other than holding onto Chase points. Keep paying the fee so I don't lose them.

Should I hang on to my IHG card? There's still a few free nights worth of use on it. If I downgraded it to avoid the fee, what happens to those points?

Downgrading the AMEX to avoid the fee drops the cash back from 6% to 3% for non-Sam's groceries. Keep it for $50/yr in profit or is there something better?

Using the Freedom as my "walking around" card. Maybe in a few months after my life stabilizes I could start building up points again with new cards.

Thoughts? Suggestions?

[jeroly]

Can't you roll the points into airline miles on some airline or other?
If not, can you just convert to cash or sell the points?

[tj]

Since your credit card spend is very low compared to your overall spend, it kind of doesn't matter what you do other than dump the cards with fees.

If you use your Chase Freedom with 1% back on everything you'll earn $240 per year.

If you switched to a 2% card, you'd get $480 per year instead.

You'll maximize your results by putting your spend on cards with sign up bonuses, just depends if you feel like playing that game or not.

[bacchi]

IHG points -- If your points are in your IHG account, you'll keep them if you cancel the card. You'll of course lose your reward night voucher from the annual fee.

Chase points -- Transfer the points to the Chase Freedom card. Charge the 5% categories (gas, movies, entertainment this quarter) and use the points as statement credit. Or just store them there until you're ready to travel again. When you're ready, you can get the CSP again and combine the points.

[Catbert]

The easiest thing to do is find a no-fee 2% card and primarily use it.  Two that I'm familiar with are Citi Double Cash care (1% when you buy, 1% when you pay) and Fidelity Rewards VISA Signature (2% goes into your Fidelity account).  I know there are other 2% cards.

If you're traveling, the IHG card would be good to keep since you get a free night every year.  I use it only for IHG hotel charges.

Be sure to keep a VISA card since that's the only type of credit card that Costco accepts.

If/when you have to starting paying the annual fee, Amex Blue could still be a keeper.  How much did you change on it last year? How do the extra points compare to the annual fee?  Another option for groceries is no annual fee Citi Custom Cash.  It pays 5% for whichever category in a given month is highest up to $500.  I use it solely for groceries.

[Travis]

If/when you have to starting paying the annual fee, Amex Blue could still be a keeper.  How much did you change on it last year? How do the extra points compare to the annual fee?  Another option for groceries is no annual fee Citi Custom Cash.  It pays 5% for whichever category in a given month is highest up to $500.  I use it solely for groceries.

Last year we spent on groceries:
$2700/Sams (Chase Freedom)
$1600/Safeway (Amex Blue)
$3000/Commissary (Amex Blue)

This year so far:
$1600/Safeway (Amex Blue)
$2930/Sams (Chase Freedom)

Totals in both years include fuel purchases since both stores have pumps.

I retired from the Army in last summer so that's where the Commissary came in. There wasn't a Sams at my last duty station, so it would have been split between Sams and Safeway if the whole year was here. It feels like the groceries I'm buying at Safeway have dropped off considerably this year and may continue to do so. To make Safeway with an Amex fee viable I would need to spend $1600 on groceries there. This calendar year it'll be close.