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I'm surprised these guys haven't gone to the next level and started up their own credit card company. That might allow them to buy frequent flyer miles at the d
by biot 11y ago
I'm surprised these guys haven't gone to the next level and started up their own credit card company. That might allow them to buy frequent flyer miles at the dirt-cheap levels and offer ridiculous signup bonuses for their card. For example, if 100K miles costs them $X, have an annual membership fee of $1.25X and you get 100K miles a year bonus. Or for $12.5X, get 1M miles a year bonus. The use of this as an actual credit card is purely optional. Or is this only financially viable due to the transaction fees the credit card companies get?
- fweespeech 11y ago> Or is this only financially viable due to the transaction fees the credit card companies get? Yes. These reward cards work out to about 1-2% cashback equivalents after the sign up bonuses. From the credit card perspective, the financials are basically identical to their normal "cashback cards". If you are like me and just want a couple free plane tickets a year, you just pick up 4 new credit cards [~160-200,000 points/miles] and cancel them. If you put 100% of your spending on credit cards and just cycle through the sign up bonuses every 3 months, its really easy and 160k miles is 2 round trip tickets a year anywhere domestically, with some leftover.
- deleted 11y ago[deleted]