Buying lots of parts? Get a free plane ticket!

[Batmobile_Engage]

Why the hell didn't I consider this before...? Credit card companies offer some great
deals on airline travel miles/points. I'd have to check to give you specific examples,
but my one co-worker has a Chase Sapphire Preferred card.

(His credit is good and well established. If you don't have a very long credit history,
this may not be for you...)

Chase awards him 50,000 miles for completing the minimum purchase (I think about $2,000)
within a set amount of time, like 60-90 days for example. When he tallies up what 50,000
points gets him, he and his wife each get a plane ticket to almost anywhere in the country
for free. After about 11 months of holding that card, he pays it off completely and closes
it, applying for another one. ***Having many short term credit accounts on your credit
report can slightly degrade your score if you don't have a lot of credit history, i.e. don't try
this at 18 y/o.*** His score drops about 10 points and then recovers in 30 days or less after
closing the account. Over time, a pattern of credit history of this time, provided that all your
payments are on time, can help increase or stabilize your credit score...
...but I digress.

I love travel. Serving in the Navy for 8 years, I have friends allllll over the country (and world),
so the idea is...

I'm going to spend $4-5K on a motor build and swap anyway. Might as well put it on a travel
miles card, which will satisfy the minimum purchase giving me 50,000 miles. THEN while the
motor is going in, take a free plane ticket to Hawai'i and visit my ex-girlfriend for a week .


I just thought this might be of interest to some people who might like to do the same thing...


Thoughts?

 

[DierwulfBL]

As long as you pay it ALL off immediately on the first bill, seems like a decent idea to me :tup:

 

[Batmobile_Engage]

Over a month or two wouldn't even be that bad if it was a 2-3K purchase, like a motor. Especially, if you're in good financial shape to begin with.

 

[DierwulfBL]

over a month or two means accruing interest which makes that plane ticket less free

 

[Batmobile_Engage]

I depends on the card. You have to do your research and of course, make predetermined, well thought out purchases
to maximize the cost/reward.

Here's a good example. One of my co-workers uses his card in this manner: He figures, "what am I always going to need
to buy? Fuel." So he buys a gas card at whatever station he frequents and puts $1-2K on it. So now, he has immediately
satisfied the minimum spending required for the airline points. He and his wife pay it off ASAP and then share the gas card
for fill ups.

Just one of the few examples.

 

[DierwulfBL]

oh yea, always make your money work for you. Personally I use bank of america cash rewards and pay the balance every month, then every now and again i get a check of "free money" to do whatever i please with and not feel guilty

 

[Batmobile_Engage]

^ Exactly.