Credit Card Churning....

[cany10011]

I'm a little late in the game as I only have 2 personal credit cards that serve me just fine and have never really cared about these promotions as it almost invariably forces me to spend on something I might not need to just qualify for these miles. With some home renovations coming up, i thought it might be a fun way to accumulate some extra points/miles at the same time (i hope my contractor will take credit cards...). However, there is a lot of talk on the internet/facebook about credit cards and promotional signing bonuses. Has any forum members taken advantage of these promotions to gain a few more mileage points and if so, was it difficult to cancel afterwards? I'm just intrigued with the whole concept. I understand not to go into debt and these are just promotions, but from what I've read, there is a whole subculture that are into signing up for these credit cards, attaining enough spend to qualify for the miles, and then canceling/keeping them indefinitely until a better offer comes along. To start the conversation, i've just signed up for Chase Sapphire, which by all accounts seem like a reasonable card to begin racking up reward points.

[Frequentflier]

I'm a little late in the game as I only have 2 personal credit cards that serve me just fine and have never really cared about these promotions as it almost invariably forces me to spend on something I might not need to just qualify for these miles. With some home renovations coming up, i thought it might be a fun way to accumulate some extra points/miles at the same time (i hope my contractor will take credit cards...). However, there is a lot of talk on the internet/facebook about credit cards and promotional signing bonuses. Has any forum members taken advantage of these promotions to gain a few more mileage points and if so, was it difficult to cancel afterwards? I'm just intrigued with the whole concept. I understand not to go into debt and these are just promotions, but from what I've read, there is a whole subculture that are into signing up for these credit cards, attaining enough spend to qualify for the miles, and then canceling/keeping them indefinitely until a better offer comes along. To start the conversation, i've just signed up for Chase Sapphire, which by all accounts seem like a reasonable card to begin racking up reward points.

 

I don't sign up for credit card promotions at department stores or other merchants as I don't need more credit cards I don't use or want to worry that an annual fee might be charged after the promotional period is over. I have at too many times in my life seen credit balances climb and then I periodically pay down with savings. That cost me more in interest than I should have incurred as I wasn't as much in control of my spending as I would have liked. I now only use credit cards for gas (pay at the pump), large purchases like travel and property taxes where the local government has arranged for no fee for payment by credit card (the government actually pays the fee). I pay off credit card balances every week off my iphone. This keeps my credit card statement balances at month end at zero yet I keep building airline miles. I use cash for everything else and find I spend less by doing so.

 

I've finally learned that the best way to save money isn't discounts, its saving instead of spending. If I'd known that 30 years ago and acted accordingly I'd be too rich for anyone reading this to know me, except off the list of 1 percenters.

[cany10011]

I'm sure the boys you've helped along the way appreciate it

[MikeyGMin]

Calling @Kurtis Wolfe . If he has the time to weigh in, he knows more about airline miles and rewards programs than anyone I have ever met.

[+ occ3672]

Go to www.insideflyer.com

[mattr]

I keep it simple. I don't have nor would I sign up for any credit card that charges a fee. I always pay off the balance in full at the end of the month. My two go to cards at the moment are Fidelity American Express (2% cash back on all purchases plus quarterly promotions) and Chase Freedom (1% on all purchases plus quarterly promotions). I also use Costco Amex for gas (3%) but that will be going away in a month or two because Costco is dropping Amex. The thing I like about Fidelity Amex is that as soon as I earn $50, the cash is automatically deposited in my Fidelity brokerage account. Chase requires you to earn at least $20 and then you have to go online and select a statement credit with the $20+. I don't fly enough to deal with the hassle of airline miles cards.

[LADoug1]

Classes could be taught on this subject

And the classes should be taught in high school in a Consumer Economics class. Teach kids about the perils of too much credit card debt; the concept of interest; how to buy a car; how to save; how to balance a checkbook etc.

 

Also, credit card promotions (kiosks and such) should be banned from college campuses. Too much temptation.

[LADoug1]

I heard too that every time you apply for a credit card your credit rating is checked. And every time your credit rating is checked you risk having it lowered the concept being that you may be taking on too much credit.

[+ Keith30309]

I keep it simple. I don't have nor would I sign up for any credit card that charges a fee. I always pay off the balance in full at the end of the month. My two go to cards at the moment are Fidelity American Express (2% cash back on all purchases plus quarterly promotions) and Chase Freedom (1% on all purchases plus quarterly promotions). I also use Costco Amex for gas (3%) but that will be going away in a month or two because Costco is dropping Amex. The thing I like about Fidelity Amex is that as soon as I earn $50, the cash is automatically deposited in my Fidelity brokerage account. Chase requires you to earn at least $20 and then you have to go online and select a statement credit with the $20+. I don't fly enough to deal with the hassle of airline miles cards.

 

This is virtually the same strategy I use. I don't chase points anymore - it's too hard to use them unless you 1) travel allot, and, 2) can be flexible on dates. As has been said, cash is king. I'd rather get the cash back and the Fidelity Amex is the best general deal I've found. Chase Ink (similar to Saphire but for self-employed) has a 5% points reward on a small subset of vendor types. Many also swear by Discover but I've never cared for their customer service.

 

Check out bankrate.com for a good side by side comparison and slickdeals.net for current promotions (Chase seems to always have something going on and they've made some changes to reduce customers churning their cards to get bonuses).

[jawjateck]

And the classes should be taught in high school in a Consumer Economics class. Teach kids about the perils of too much credit card debt; the concept of interest; how to buy a car; how to save; how to balance a checkbook etc.

 

Also, credit card promotions (kiosks and such) should be banned from college campuses. Too much temptation.

 

But but but.....our economy is doomed if you teach such radical common sense money management.

[craigville beach]

I heard too that every time you apply for a credit card your credit rating is checked. And every time your credit rating is checked you risk having it lowered the concept being that you may be taking on too much credit.

 

this is somewhat true. if you went out and filed for 5 different cards or loans at the same time. a singular inquiry that results in an open account with no balance can actually increase your score. part of the score calculation uses the percentage of unused credit lines available. the lower the available credit percentage, the lower the score factor. the higher the available credit percentage, the higher the score factor.

[AndreFuture]

Many also swear by Discover but I've never cared for their customer service.

 

I love Discover! They've always had my back for the last 16 years. I could also just be super lucky since I've also had amazing care from the notorious Kaiser Permanente.

[jawjateck]

Credit score? what the heck is that?

[+ Hoover42]

[...] Costco is dropping Amex.

OMG! Say it ain't so!

 

Damn! So, I have to bring a wad of twenties to Costco now? Too bad they don't have strippers working at the hot dog counter.

[mattr]

OMG! Say it ain't so!

 

Damn! So, I have to bring a wad of twenties to Costco now? Too bad they don't have strippers working at the hot dog counter.

 

They will be replacing it with another card (Mastercard I think) this spring. On another note, I will never look at Costco hot dogs the same way.

[craigville beach]

Credit score? what the heck is that?

 

Unless you just landed on earth, or got out of spending the last 30 years in Jail, you have a credit score. All three major credit bureaus have developed a "formula" that calculates the likelihood of you paying (or not paying) your bills. If you have: any department store credit card, bank credit card, some cell phone carriers, car loan, mortgage loan, student loan, credit line (including credit lines established at legal casinos), you have an established credit score. Google "credit score" and you can read many articles on the subject.

[LADoug1]

Unless you just landed on earth, or got out of spending the last 30 years in Jail, you have a credit score. All three major credit bureaus have developed a "formula" that calculates the likelihood of you paying (or not paying) your bills. If you have: any department store credit card, bank credit card, some cell phone carriers, car loan, mortgage loan, student loan, credit line (including credit lines established at legal casinos), you have an established credit score. Google "credit score" and you can read many articles on the subject.

I think jawjateck was just making a joke ...