4 ms·

Gaming credit cards isn't a futile game in the US; there are signup bonuses for most of them ranging from $300-multiple thousands of dollars worth of value, dep

by gergles 12y ago

Gaming credit cards isn't a futile game in the US; there are signup bonuses for most of them ranging from $300-multiple thousands of dollars worth of value, depending on how you spend them and what you're interested in doing. American credit cards nearly universally offer lengthy interest-free grace periods, as well, so there's little risk as long as you have enough base spending to qualify for the signup bonus. As an example, you can sign up for an American Airlines credit card and earn 50,000 miles after spending $3000 on the card. Buy $3,000 worth of things you were going to buy anyway, and then you have a one-way business-class ticket from the US to Japan (worth at least $2K, probably significantly more). There are hundreds of these offers, so gaming credit cards can be a significantly net positive hobby for people who know how to manage their spending and who don't actually use the credit facility of the cards beyond the grace period.

pktgen 12y ago
Yep. I just applied for a few, and here's what I got: - 70,000 Marriott points which I estimate to be worth about $700, based on the equivalent cash price I'd have paid for the hotel rooms (which I do have plans for) - $890 in cash bonuses - 50,000 ThankYou points which are worth $500 cash (the trick is to request mortgage or student loan redemptions, which can be made out to the bank in which you have a checking account, and then just deposit it in your account. The redemption value is higher this way than with the normal cash option.) or more for travel (probably will just take the cash as I have enough airline + hotel points right now). The tilt towards cash or cash-redeemable bonuses is intentional, as I have enough points of various types to support my travel plans. One other 'danger' I've seen some fall into is valuing their points based on the cash value of whatever they redeemed them for. For example, it's common to see people redeem airline miles for a ridiculous $10,000 ticket, and then claim they got 10c/mile or whatever based on that price. In my opinion, unless you would have paid $10k cash for that ticket had the points not existed, you haven't gotten 10c/point; you've gotten $(price you would have paid for a ticket) / $(pointsRequired). I have to spend a little over $10k to get these bonuses, which will be almost entirely in manufactured spend. I'm most certainly not spending a single penny more than I would have spent if credit cards didn't exist at all. It's also worth adding a few statistics: - Total credit card debt I've ever held in my life beyond the grace period: $0 - Total interest I've ever paid in my life: $0
- bane 12y ago
  And that's the right way to use credit cards, as an alternative to cash, paid off every month. Don't buy what you wouldn't/couldn't have bought with cash, and you'll be fine. The trouble is people who use credit to try to live above their financial means who end up getting trapped in a cycle of trying to pay down debt that accrues interest faster than they can pay it off.
  - pktgen 12y ago
    Yep. Basically, the ones who use it incorrectly are subsidizing the ones like myself who (ab)use it correctly.

by gergles 12y ago

pktgen 12y ago

Yep. I just applied for a few, and here's what I got: - 70,000 Marriott points which I estimate to be worth about $700, based on the equivalent cash price I'd have paid for the hotel rooms (which I do have plans for) - $890 in cash bonuses - 50,000 ThankYou points which are worth $500 cash (the trick is to request mortgage or student loan redemptions, which can be made out to the bank in which you have a checking account, and then just deposit it in your account. The redemption value is higher this way than with the normal cash option.) or more for travel (probably will just take the cash as I have enough airline + hotel points right now). The tilt towards cash or cash-redeemable bonuses is intentional, as I have enough points of various types to support my travel plans. One other 'danger' I've seen some fall into is valuing their points based on the cash value of whatever they redeemed them for. For example, it's common to see people redeem airline miles for a ridiculous $10,000 ticket, and then claim they got 10c/mile or whatever based on that price. In my opinion, unless you would have paid $10k cash for that ticket had the points not existed, you haven't gotten 10c/point; you've gotten $(price you would have paid for a ticket) / $(pointsRequired). I have to spend a little over $10k to get these bonuses, which will be almost entirely in manufactured spend. I'm most certainly not spending a single penny more than I would have spent if credit cards didn't exist at all. It's also worth adding a few statistics: - Total credit card debt I've ever held in my life beyond the grace period: $0 - Total interest I've ever paid in my life: $0

bane 12y ago
And that's the right way to use credit cards, as an alternative to cash, paid off every month. Don't buy what you wouldn't/couldn't have bought with cash, and you'll be fine. The trouble is people who use credit to try to live above their financial means who end up getting trapped in a cycle of trying to pay down debt that accrues interest faster than they can pay it off.
- pktgen 12y ago
  Yep. Basically, the ones who use it incorrectly are subsidizing the ones like myself who (ab)use it correctly.