Today we’re featuring KartRider. I first noticed him because he was always posting on the forums, saying he couldn’t resist after a few drinks and applied for card after card—and got approved every time. The truth is, with credit cards, you only really understand them once you’ve used them yourself. So while his posts may seem freewheeling and all over the place, if you read closely, you can find a very real sense of firsthand experience beneath the jokes.

About KartRider

I’m based in NYC and work in the food service industry. Over the past year and a half, I’ve opened a total of 30 new cards. Recently, though, I’ve been cleaning up my card lineup. With the goal of lowering my total CL, I’ve been closing some sock-drawer cards and safe-deposit-box cards that I don’t use. After slimming down, I expect to keep around 20 cards (not including authorized-user cards).

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When did you start getting into credit cards? What got you started?

I’ve actually had my SSN for 7 years, but at first I had no idea credit cards could be used as a financial tool, so I was always behind on information. It wasn’t until 2011, when I was thinking about buying a car, that I started taking credit history seriously. At the beginning, because I didn’t know English well and had no one around to teach me, I couldn’t get approved for any cards. In the end, I went to Citi, put down a 500 deposit, and got a secured card. That was when I really started building an official credit record, so it’s actually been less than four years. It worked out pretty well—I got a zero-interest auto loan when I bought my car.

Of course, that secured card was the first one I closed. The oldest card I still have now is the Citi Diamond Preferred..... It gives me 5% back each quarter up to 500 bucks, which is pretty nice.

What’s your favorite credit card, and why?

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My favorite is definitely the Ritz-Carlton Card (Chase Ritz-Carlton).

The reasons are simple: 1. an outstanding metal card design; 2. an excellent benefits package.

But in the end I didn’t keep it. I promise that’s only temporary—I’ll apply for it again when I get the chance.
Because I currently have two other cards whose benefits largely overlap with RC, I decided after weighing the pros and cons to close the RC for now. If the opportunity comes up, I’ll apply again and keep it long term.

Other than that one, I also think the Chase Hyatt is a great card. Solid benefits, and the annual fee is pretty reasonable.

After trying so many cards, what’s your view of the U.S. credit card system?

The U.S. is a country without monopoly power, so there’s competition everywhere. Since no one issuer dominates the market, no single card is perfect or irreplaceable. I think using cards is really about the overall experience. No matter how great the benefits are, if you can’t use them, they’re worthless. No matter how good the system is, if you run into an uninformed CSR, it can still be frustrating. So if it feels good, that’s what really matters. I’m a typical Chase fan and kind of an AMEX hater. I don’t think AMEX customer service is all that great, because every time I make what seems like a reasonable request, they can’t help me. So with AMEX, my attitude is basically to grab the bonus and move on.

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What’s the most unique experience credit cards have brought you?

Honestly, this might sound laughable. I’m not some rich, glamorous guy. I would never pay out of pocket for business class, buy a lounge pass, or spend extra for a hotel executive floor. If breakfast wasn’t included, I’d just go out and eat McDonald’s. Before I got into the points-and-miles game, I stayed at motel 6 or super 8, and at the airport I’d just buy a Starbucks and sit there watching planes take off and land.

Now things are obviously different. When I travel, I definitely look for chain hotels. With loyalty programs and mid- to upper-tier elite status, the real cost often isn’t any higher than those old motel stays.

On the airline side, I travel between NYC and DC a lot. In the past, driving or taking the bus was really exhausting. Now I redeem BA for it, and 4500 points is easy. If I get there early, I can even relax in an airport lounge and grab something to eat. The experience of taking a bus versus flying is completely different. I also want to give a shout-out to AMEX lounges—that’s probably the one thing about AMEX that actually satisfies me. Back in the day, this kind of lifestyle would have been unimaginable. It really does feel a little luxurious.

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If you could go back in time, how would you plan your credit card strategy?

I actually think my application strategy was very good. Maybe the timing was favorable, and it also helped that I had several years of credit history built up. In my first wave, over about three months, I applied for around 15 cards. I basically grabbed all the cards I wanted right from the start. Most of them were Chase hotel cards. After that, I applied for a few airline cards with a take-it-or-leave-it attitude and just banked the miles for future use.

Card strategy really varies from person to person.

For example, I like driving around on my own, so hotel needs matter more to me than airline miles. For everyday spending, I mainly earn UR, with help from Ink Cash, Freedom, and the UR mall, so the points build up pretty quickly. My plan is to transfer to Hyatt when needed, and if there’s no Hyatt, I’ll stay at IHG.
I basically don’t collect points in other ecosystems, because focusing your effort in one place is more effective.

What do you think is different between the U.S. hotel system and the one in China? How should people choose hotels and the right credit cards for them?

Hotels are a very localized business. In China, foreign hotel brands are really aimed at foreigners who recognize those brands, and they’re still far from beating local companies. So if you’re choosing hotels in China, unless you have a specific need or your employer is reimbursing the stay, try not to choose foreign brands—they’re usually poor value for money. Of course, if you’ve racked up a lot of hotel points in the U.S., that’s a different story. If you’re used to staying at three-star hotels, every now and then it’s fun to enjoy—or show off a little at—a five-star property.

In the U.S., this is actually much easier to think about. At the core, a hotel is just a money-making tool, and a hotel group is just a chain version of that money-making tool. Don’t think of well-known hotels as luxury goods. Their basic nature is more like the McDonald’s or gas station down the street. In any given place, there’s never just one hotel enjoying a monopoly. Right across from it, there’s always another hotel competing for the same business—just like there’s a KFC across from a McDonald’s. So when you’re dealing with all these hotel groups, you actually have the upper hand, because they’re competing for you.

Every hotel group has a bunch of sub-brands, and each group has its own tiers. Put simply, what you get at Starwood, you can also get at Marriott; maybe the cat is different or the hotel name is different, but that’s about it. A lot of people may disagree, but I do admit that corporate culture matters. Different groups emphasize different things, so the feel you get really is different.

A lot of people think that when they travel, a hotel is just a place to sleep. The price or award cost difference between a cat1 and a cat9 can be 5 times, but the surprise factor isn’t X5, so they never choose higher-end hotels. But hotel pricing and star ratings are really determined by two things: software and hardware. Software means the quality of the staff, while hardware means the physical property itself.

At a high-end hotel, highly trained staff can often figure out what you want before you even say it. They can pleasantly surprise you and handle your requests quickly, like the all-knowing innkeeper in a martial arts novel. As for hardware, that covers everything—from the hotel’s location and décor to details as small as the thread count per square centimeter of the sheets on the bed you’re rolling around in, or the brand of toilet paper. You really do get what you pay for.
So if you can’t appreciate high-end hotels, it’s not necessarily because the value proposition is too low—it may just be that your lifestyle hasn’t yet reached the point where you can tell the difference in how a bed feels. That’s okay. Slowly but surely, you’ll come around. It’s easy to go from frugal to luxurious, but hard to go back the other way!!!

Hotel credit card signup bonuses are absolutely one of the biggest chunks of value in this whole game. So don’t be too precious about HP, and don’t be shy with the banks—getting every card you can is the way to go. Once you’ve got the bonus, don’t hesitate: use those points one by one. What happens after the points run out?
There are a few scenarios:

  • If you’ve used up the points and a hotel is really just a bed—or a hookup spot—to you, and booking direct on the official site feels too expensive, then just close the card and move on. When you travel, do your thing—if it makes sense to bid, then bid.
  • If, after staying around, you realize you’ve gone from bonus hunter to die-hard fan of a particular hotel group, then don’t overthink it—just commit. The returns are all pretty similar, and the hardware is broadly similar too. The real difference is the hotel group’s culture. If you’ve become a die-hard fan, it’s because you like that culture, and that first-love feeling is worth cherishing!

    If someone is like me and mainly earns UR, I’d suggest keeping IHG and Hyatt. There’s not much to explain for IHG. As for Hyatt, even though the annual fee is as high as 75, the free night FN basically offsets it. And since UR can very likely be transferred to Hyatt to use up points, keeping the Platinum status still isn’t a bad deal.

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Has playing this game changed your life? What does your family think about it?

To be honest, while playing the credit card game does bring rewards, it also means a lot of hassle. These days, every morning when I wake up, I’m checking a few expert blogs, watching a few forums, and managing dozens of accounts. Travel used to be easy—Expedia was a one-stop solution. Now when I travel, I have to compare one company after another and look at every promotion, calculator in hand, figuring out the return. But even though it’s a hassle, the results are great. Every time I look at what all that effort has produced, I still feel very satisfied and forget how painful the process was.
As for my family, they drive me crazy. They don’t understand any of it, so they just leave everything to me. I do all the work, and they just pack their clothes and head out…

What should beginners watch out for when getting into credit cards?

When you’re first getting into it, it feels like there are so many cards that it’s overwhelming. Every card seems great, and it’s hard to choose.
As for how to choose, that depends on how you position yourself. For example, are you looking for points? Cash back? Premium perks? And so on.
Once you know that, then figure out your own geography and habits: which airline uses your home airport as a hub, and which hotel groups you prefer.
Once your positioning is clear, the card game actually becomes pretty easy.
Given the intense competition and generous signup bonuses, my advice for beginners is: if you’re able to, try applying for as many as you can at least once, and then slowly trim them down over time. Signup bonuses are a pretty nice windfall.

Any suggestions for this site?

Keep it up! Hope you can help more people understand credit cards and really make the most of them.