Credit Card points optimization - What do you carry and use?

[ct.matt]

Originally Posted by Abdullah71601

Look at the interest rates on many of the cards with point programs. CSR is 24% and up. The points program manipulates and incentivises people to spend more, and if the buyer doesn’t pay that billing cycle he gets gouged on interest. It’s a racket.

Good on ya for paying on time. Most people don’t. Statistics bear that out. Incentivising people to spend more, and to carry balances on these high interest accounts, is why I say this is a fools game.

All my credit cards are on auto pay. I have never had a late payment or accrued interest I only buy things I can afford and I'm woefully aware of my checking account balance.

[The Libertine]

AMEX is my card of choice; decent point/reward program and exemplary customer/member service.

[christianj]

Originally Posted by Abdullah71601

Look at the interest rates on many of the cards with point programs. CSR is 24% and up. The points program manipulates and incentivises people to spend more, and if the buyer doesn’t pay that billing cycle he gets gouged on interest. It’s a racket.

Good on ya for paying on time. Most people don’t. Statistics bear that out. Incentivising people to spend more, and to carry balances on these high interest accounts, is why I say this is a fools game.

True but for me and anyone else paying their balance in full why should we pass up the points? Especially if we get a benefit from the points like free flights and hotel nights.

[texasmade]

Originally Posted by Abdullah71601

The programs are designed to get you to spend more chasing points. The system is built for them to make more money. Do you think they are a charity?

I always ask for the cash price at local stores. I usually get a discount. Big ticket items can be a pretty good discount. My CC interest rate is 9.75%, no annual fee, no minimum spend. Pay in the same billing cycle, no interest. I don’t get points, but then I don’t chase them either.

A lot of it depends on your spend level and where you're spending. I know most American restaurants don't give you a discount for using cash so it's smarter to pay with a CC and get some points or cash back. Same if I go to a Target/Wal Mart/Amazon online shopping. There's no difference in price if I use cash or credit. As long as you pay off the balance at the end of each month you're fine and most people that have rewards cards do this.

The person that ultimately ends up paying for others points and cash back are the people who don't use cards.

[perpetualman88]

amex

[texasmade]

My cards are Bank of America cash back with no fees:
1% everywhere
2% groceries and drug stores
3% gas stations.

Since I'm a platinum member at BoA I get a 75% boost on my cash redemption so it's really 1.75, 3.5, and 5.25%.

For dining, travel, and foreign transactions I use Chase Sapphire Preferred.

[c41006]

Originally Posted by Abdullah71601

Look at the interest rates on many of the cards with point programs. CSR is 24% and up. The points program manipulates and incentivises people to spend more, and if the buyer doesn’t pay that billing cycle he gets gouged on interest. It’s a racket.



Good on ya for paying on time. Most people don’t. Statistics bear that out. Incentivising people to spend more, and to carry balances on these high interest accounts, is why I say this is a fools game.

I get what you’re saying. Overall they are counting on people spending more and carrying a balance and if they do those things then yes the CC company comes out on top. If you are disciplined and pay your balance every month and only charge what you’d be buying anyway then the cardholder wins.

You kinda made a broad statement when you said it’s a fools game. It’s only a fools game if the cardholder is a fool.

[Abdullah71601]

Originally Posted by c41006

I get what you’re saying. Overall they are counting on people spending more and carrying a balance and if they do those things then yes the CC company comes out on top. If you are disciplined and pay your balance every month and only charge what you’d be buying anyway then the cardholder wins.

You kinda made a broad statement when you said it’s a fools game. It’s only a fools game if the cardholder is a fool.

Not many are though.

[andromeda160]

Originally Posted by Abdullah71601

I choose hotels that have free breakfast. And no frills credit cards with low interest, no fees, and no hidden costs. In the long run, you can’t make money on points. It’s a fools game (no offense).

I know someone who hasn't paid for a vacation in the oast 5 years by flying spirit, getting the soirit credit card when they offer 25-50000 free miles for signing up, then gets another bonus for spending a certain ammount in the first 3 months. Cashes out, cancels then resigns up on her next trip lol



Spirit was alright when I drank. Couldnt get me on one of those cattle trains anymore

[Abdullah71601]

Originally Posted by andromeda160

I know someone who hasn't paid for a vacation in the oast 5 years by flying spirit, getting the soirit credit card when they offer 25-50000 free miles for signing up, then gets another bonus for spending a certain ammount in the first 3 months. Cashes out, cancels then resigns up on her next trip lol



Spirit was alright when I drank. Couldnt get me on one of those cattle trains anymore

How does repetitively cancelling cards, then re-applying, not whack the snot out of her credit score?

[andromeda160]

Originally Posted by Abdullah71601

How does repetitively cancelling cards, then re-applying, not whack the snot out of her credit score?

No clue, I don't have a credit card

[mannyv11]

Originally Posted by Abdullah71601

How does repetitively cancelling cards, then re-applying, not whack the snot out of her credit score?

I was thinking the same thing. Every time someone cancels a card it is has a negative impact on credit (reduces overall credit limit and reduces the amount of time a card is open), then he reapplies which would also have a negative impact on his credit.

I don't see how it is feasible in the long run. As a side note I would also rather walk across the country then get on any plane that has spirit written on the side, they suck so bad.

[andromeda160]

Originally Posted by mannyv11

I was thinking the same thing. Every time someone cancels a card it is has a negative impact on credit (reduces overall credit limit and reduces the amount of time a card is open), then he reapplies which would also have a negative impact on his credit.

I don't see how it is feasible in the long run. As a side note I would also rather walk across the country then get on any plane that has spirit written on the side, they suck so bad.

I always said they named it after what you need to tolerate it. Id get plenty wasted before I ever stepped foot on one. There was a guy who just said screw it and stoodnup in the aisleway the whole flight one time. Was worth it to go on vacation with my little sister though. Now she hardly wants to see me

[Baco Noir]

Originally Posted by Abdullah71601

Look at the interest rates on many of the cards with point programs. CSR is 24% and up. The points program manipulates and incentivises people to spend more, and if the buyer doesn’t pay that billing cycle he gets gouged on interest. It’s a racket.



Good on ya for paying on time. Most people don’t. Statistics bear that out. Incentivising people to spend more, and to carry balances on these high interest accounts, is why I say this is a fools game.

Pay my balances in full monthly and am never late. My no fee Fidelity Investments Visa card gives me 2% cashback monthly directly deposited into my account.

My IHG MasterCard gives me a free hotel night each year and 5x points for IHG hotel nights.

My United Airlines Visa gets me free bags and priority boarding.

I get more back on each of these than the small fees and don’t carry any balances, so I’m ahead of the game.

[christianj]

Originally Posted by Baco Noir

My IHG MasterCard gives me a free hotel night each year.

In case you haven’t heard I’ll be the bearer of bad news as the terms are changing. Free night will be limited to hotels costing 40k per night or less effective May. Cardholders are being notified via mail and I got the notice today. So no more 70k per night hotels for the annual fee of the card.

[Baco Noir]

Originally Posted by christianj

In case you haven’t heard I’ll be the bearer of bad news as the terms are changing. Free night will be limited to hotels costing 40k per night or less effective May. Cardholders are being notified via mail and I got the notice today. So no more 70k per night hotels for the annual fee of the card.

Bit of a bummer, but not a deal breaker - just means the annual fee is more of a push with free hotel night.

[srvrf]

Like a lot of things, it depends on your situation. I do not travel for business and we only take 2-3 trips per year. Since we are based out of Indianapolis, we have no “hub” and the only lounge is Delta. So we can’t consistently fly the same airline, nor can we consistently stay within the same hotel chain/group. So we just stay with our no annual fee credit union card and get 2% back. It’s automatically paid off every month so I don’t have to remember to pay it.


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[emersm]

American Airlines Aadvantage. Amex and MC. I use it for everything and pay the balance off on time every month. The wife and I fly to Hawaii every year with with the points we accrue.

[car_wash_guy]

I have both a Citi / AAdvantage Executive World Elite Mastercard ($450/yr) and a Citi / AAdvantage Platinum Select World Elite Mastercard($95/yr).

I pay all balances on time. I get free lounge access ( I travel internationally every month, and domestically every 3-5 weeks).

I usually get at least 3 J class trips to Europe every year. Free

[Flyinghunter]

Debit only. I only spend what I have. No CC for me.

[carwash66]

For our business: Spark Business by Capital One. 2% cash back on every purchase.
For personal use: Citi 1+1. 1% when you make purchase, 1% when you pay.
Business and personal cards are paid in full each month.
We let the cash rewards build up for a few months, then request check. Love it.

[encarter13]

AMEX Platinum for work and AMEX Delta Platinum for personal.

[Kneecough]

Amex Platinum... the Uber/airline credits, global entry and ShopRunner cover my annual fee.

Points, lounges, access and customer service are all a bonus.

[Ferdelious]

Originally Posted by texasmade

My cards are Bank of America cash back with no fees:
1% everywhere
2% groceries and drug stores
3% gas stations.

Since I'm a platinum member at BoA I get a 75% boost on my cash redemption so it's really 1.75, 3.5, and 5.25%.

Same here, an there is no annual fee for this card. I get close to 4 figures cash back every year.

[Blansky]

AMX gold card and use the points at Amazon. I definitely get more back than what I pay yearly.

[CamSLC]

Chase Sapphire Reserve, Amex platinum, Amex Delta Platinum.

I used CSR for dining and the Delta card for most other transactions/shopping. I signed up when all offered substantial point bonuses and the benefits have easily outweighed the annual fees.

[encarter13]

Originally Posted by Flyinghunter

Debit only. I only spend what I have. No CC for me.

This is what my MIL used to do. I got her to switch to a AMEX CC. Basically, anything you would swipe your debit card for, swipe your CC instead.

[SMD]

United Club Visa and Amex Plat. Travel a ton so works for me.

[singe89]

Originally Posted by christianj

True but for me and anyone else paying their balance in full why should we pass up the points? Especially if we get a benefit from the points like free flights and hotel nights.

100% put everything on my CCs both personal and business and pay off in full. Good way to get free vacations or spend it on Amazon stuff.

Amex Plat for business
Chase Sapphire Preferred for personal and one for family.

[christianj]

Originally Posted by singe89

100% put everything on my CCs both personal and business and pay off in full. Good way to get free vacations or spend it on Amazon stuff.

Amex Plat for business
Chase Sapphire Preferred for personal and one for family.

Amazon stuff! You can get a much higher return than that on flight and hotel redemptions. But then again you need to want to take a vacation do do that.

People that redeem AMEX or Chase UR points for gift cards are at least keeping the credit card companies happy with their redemption values. Essentially 1% return.