Why I’m not a fan of United’s “refreshed” credit cards

If you’re a United credit cardholder or read BoardingArea often, you’ve probably already read that United has recently “refreshed” its credit cards, which is (almost always) credit card company marketing lingo for “we’re changing your benefits and charging you a higher fee.”

While I won’t go into a full overview of the changes made to United’s credit card portfolio (One Mile at a Time has a great overview, here), below are some updates to the United credit card that I have, the United Explorer card:

• Annual fee increased from $95 to $150.
• Up to $60 rideshare credits, earned at $5 per month (registration required).
• Up to $100 in statement credits on United Hotels purchases, earned as $50 credits every six months.
• Up to $120 in Instacart credits annually, earned as $10 monthly credits, in addition to a complimentary three-month Instacart+ membership.
• Up to $100 in JSX credits earned each anniversary year.
• $100 United Travel Bank credit after spending $10,000 in a calendar year.
• 10,000-mile discount for an award ticket earned after spending $20,000 in a calendar year.

While these benefits are worth far more than $150 (the cash benefits alone for just the above are $480), here’s why I’m not a fan of these updates: it’s all just way too much to keep track of.

Basically, these updates really only benefit two types of people: (1) those who use their United card for nearly every purchase or (2) people who are very organized and have the time to spend keeping track of these benefits. And while I fall into category (2), even I think that there’s just way too much to keep track of to take full advantage of these benefits.

This leads me to believe that Chase and United had a singular goal when developing these “refreshed” card benefits: they want you to use your United card for all your spend.

The issue with using your United card for all your spend is that the earning rates are pretty low compared to other options and considering how significantly United miles have been devalued in the last few years. For instance, the United Explorer card earns the following:

• 5 miles per $1 spent on hotel stays purchased through United Hotels.
• 2 miles for every $1 spent on United Airlines purchases, dining, and hotel stays.
• 1 mile for every $1 spent on everything else.

You can earn significantly more points and miles by putting spend on other cards, including other cards that earn points that can be converted to United miles. For instance, if you have the Chase Sapphire Reserve card, you’d earn the following points (which can be transferred to United or other partners, making the points even more valuable):

• 10 points for every $1 spent on hotels and car rentals when you purchase travel through Chase Travel.
• 5 points for every $1 spent on air travel booked through Chase.
• 3 points for every $1 spent on travel and dining.
• 1 point for every $1 spent on everything else.

So sure, you may get $5 back per month on rideshare with the United Explorer card, but you’ll be earning 1 mile for every $1 spent, compared to earning 3 points for every $1 spent with the Chase Sapphire Reserve card. And to give you a $0 annual fee card example, here’s how much you’d earn with the Chase Freedom Unlimited card:

• 5 points for every $1 spent on travel purchased through Chase Travel.
• 3 points for every $1 spent on dining and drugstores.
• 1.5 points for every $1 spent on everything else.

Even with all the benefits added to the United Explorer card, my guess is that the average consumer would come out ahead by putting all their spend on the $0 annual fee Chase Freedom Unlimited card.

Bottom line

The updates made to the “refreshed” United cards are simply too much for most cardholders to keep track of and will generally benefit consumers who use their United card for nearly all of their purchases.

Despite all the new benefits added to the United Explorer card, broadly speaking, most points-savvy consumers will likely still be worse-off making their Chase United card their go-to card. Chase and United want you to look past that, but I won’t

While I doubt I’ll get rid of my United Explorer card as it’s my oldest credit card, I’m tempted to after this update.

What are your thoughts on United’s updates to their Chase credit cards? Let me know in the comments.