Should You Bother With the Starwood Preferred Guest Card?

Before the devalued sign-up bonus, the Starwood Preferred Guest Card from American Express was always one of the first credit cards I recommended to people. The sign-up bonus of 25,000 – 30,000 points wasn’t massive, but it was the flexibility of the points that was so great. Now that the sign-up bonus has dropped to $200 and SPG points are about to be automatically converted to Marriott points, should you bother with the card? There are pros and cons to consider.

The obvious pro to getting an SPG card now is that you have a little bit of time to make the most of it. I already have one and I’m putting all the spending I can into it in while SPG award redemption rates are still decent. That being said, you might still get value out of this card after August 8, when SPG points are automatically converted to Marriott at a 1:3 ratio. For starters, you’ll earn 3 Marriott points per $1 spent on everything. That’s higher than the 2 points you’ll earn with the new Marriott Premier Plus Card. So if you’re interested in continuing to earn Marriott points at a favorable ratio after August 8, then getting an SPG card is actually a good move.

The downside to getting an SPG card is the sign-up bonus. For both the Starwood Preferred Guest Credit and Business Card, the sign-up bonus is $200. The first $100 is paid out when you spend $1,000 in 3 months. The additional $100 is paid out after you use the card to pay for a SPG or Marriott hotel stay. That’s a terrible offer. I normally don’t recommend any sign-up bonus that doesn’t get you at least $500 worth of value, so you can imagine I’m not thrilled with this one. That being said, if you can make up for the lack of sign-up bonus with spending, then it might be worth it.

You might also want to hold off and see what the new premium Starwood credit card has in store. It has some really impressive benefits, like $300 worth of hotel statement credits and $100 Global Entry fee credit. Cardholders also get gold status, with the ability to upgrade to Platinum after spending $75,000 in a year. Plus, there’s an annual free night (up to 50,000 points) incentive for those who renew the card every year. There’s no word yet on how many points cardholders would earn, but I’m already liking this card better than the existing SPG cards…even if the annual fee ends up being $450.

So should you bother getting an SPG card at this point? If you’re a big spender who can make the most of the upcoming 1:3 transfer ratio, then go for it. But if you’re looking for a good sign-up bonus, look elsewhere. Pick up a Platinum Card from American Express. It currently has a 60,000 point sign-up bonus after you spend a combined $5,000 in 3 months. Want something more attainable? Get yourself a Chase Sapphire Preferred – the 50,000 point sign-up bonus (after $3,000 spent in 3 months) can actually be transferred to Marriott Rewards. However, you’ll likely be better off redeeming those points through the Ultimate Rewards travel portal for a Marriott or SPG hotel.

 

I want to know your thoughts: Would you get an SPG card at this stage of the merger?