Are you making money with your purchases?

[rick imby]

I have had a point collecting hobby for a long time. 15 years ago I traveled to Malasia and Thailand on airline miles---wow--I can't believe it was that long ago.
This year I spent most of the winter in the Philappines. I paid $68.50 for the round trip ticket and 82000 points.

Recently I have been advising my sister, brother and a nephew on how to get points.

There are two main directions you can go. One is to go after cash back points and the other is to go after airline miles.

I have been an airline points junky for many many years.

Most of you guys have significant monthly bills that could be paid with a credit card.

My accountant says the points are not income to me or the business and are not taxable---you can ask your accountant what he thinks. I harvest about 300,000 points per year from my business to my personal recreation... My way of spending the points usually gets me between 1.25 cents and 3 cents per point.

The Signup Point bonuses on cards can pay for a trip all by themselves.
For a $95 per year card I expect at least 50,000 points.
For a no yearly fee card I expect at least 10,000 points but recently got 17,500.

I am currently deep in the Chase Sapphire Card/United Card/Freedom credit card game. I just got the 50,000 points bonus + 5000 second card bonus for the Saphire card. I try to get one new High points reward card per year. I will keep it at least 2 years. You cannot normally get a sign on bonus if you have had the card in the last two years.

I never use my cards if I can get a discount for cash of 1.9% or more. One of my cards is 1.5 points on everything. For less than 1.9% discount on a business expense I am better off to use my card and get the points personally. Almost all the points can be used to get a penny but I never do. I will usually spend a penny rather than spend a point. I normally won't spend a point unless I get at least 1.25 cents for it.

Anybody else a points nut on here?

 

[rick imby]

Once you setup your points gaining system you can nearly forget about it. I carry three cards in my wallet, one for restrants 5%, one for gas 2%, one for everything else 1.5%.

You probably need to pay the bills every month---

 

[dealtimeman]

Yes and that's it, you have to pay it off every month.

I like getting those cards but with 0 percent for 18 months in the event I would like to carry it for a minute.

In two years I drummed up 387000 miles on United and 197000 on American just from purchases.

 

[Zee]

So what would you get if you were to sign up now? I was just talking about this the other day and was wondering which way to change things... Now that Costco got rid of American Express..

 

[rick imby]

We only have United and Delta at my local airport. The Delta points suck compared to United.

The biggest benefit to points is on last minute flights---with united anyway---I spent 12500 points and $80 for a last minute (I left the same day) to a funeral. It was over $500 to book it with cash.

 

[rick imby]

The New costco card is great for gasoline ---4% up to $7,000 per year. It is free with costco membership as of june 20.

The Bonus on the Chase Sapphire card is 50,000 points right now and 5k points for an extra person. That is as high a bonus as you will normally get.----

The Chase Ultimate reward points are very very good. They can be converted to United, Southwest, Korean Air, Marriott and many other points plans at 1:1. Or spent on travel for 1.25 cents per point.

The card to get for Airline points is dependent upon your local airport service.....

 

[rick imby]

Also the costco card does not use a hard credit check to get the card if you had the Amex through Costco. Hard credit checks are good to keep to a minimum as most self employed are credit rating challenged---

 

[rick imby]

Chase Sapphire and Chase Inc are really close to the same card except what they offer bonus points on different categories.

Here is a great link talking about Chase points.

http://thepointsguy.com/2016/01/why-you-need-chase-trifecta-2016/

Chase just came out with the Freedom unlimited card which is 1.5 points per dollar-- and no yearly fee.

 

[Donwand]

I love my Capitol One card. I get 2 points for every $1 dollar I spend. I use it for airline miles and there is never any blackout dates and you can choose any airline and the miles never expire. There is however a $35 per year fee.

American and Delta also have credit cards that give anywhere from 25,000 to 50,000 points just for opening up a card. If you charge a certain amount within 3 months you get to keep the points and the card is free if you cancel within 12 months.

I've been doing this for years and never pay for airfare. I here it not good for your credit score, but it has never be an issue for myself or my wife.

Checkout creditcards.com for the lastest deals.

 

[rick imby]

Brian,

Your card is awesome but it is more of a cash card. That means the points are used as cents to buy flights. Some of the Airline cards charge a specific # of points for a ticket no matter what the distance---United and Alaska usually have flights anywhere in the lower 48 for 25000 miles round trip. The airline cards that have the big sign up bonus 50k to 75k miles are usually $95 per year.

You might try either the Ink or Sapphire cards for their 50k signing bonus. Most Carpet cleaners will not have a problem spending $3000 or $4000 in three months between chemicals and gasoline.

 

[rick imby]

So what would you get if you were to sign up now? I was just talking about this the other day and was wondering which way to change things... Now that Costco got rid of American Express..

The Chase Ink card gives 5x points on cell phone, landline, office supply stores, internet and cable tv, and 2x at gas stations. It can either be the no annual fee or the 95 per year card.

To get the airline and hotel points plan transfer availability you must have a $95 per year Chase card.