If you mean that you can get a higher “yield” by churning a credit card with a big sign-on bonus, that’s true, but you can only do that 2-4x a year without tanking your credit score and tripping up a lot of credit card decline rules that will lock you out of the best deals (for example, Chase will decline you if you got 5 cards in the last 24 months).I have four bank of America cards. Spending $10k for an extra $200 seems suboptimal IMO
Some of us have several cards, so the value of the promotion can be many times that.
In any case, I will likely do my transactions shortly after midnight ET. I don’t expect any issues with eventually getting the bonuses like the last two years.
If you mean that you shouldn’t spend more money than you were already planning to spend, that’s right. But if you’re spending $10k regardless, why not max out the rebate yield you get on that spend? It takes a little time to set up, but once this system is running it requires minimal effort and gets you extra money. You can easily earn north of $500 per year in tax free money over and above what you could get with other cards out there just by having a few of these cards.
Sign-up and early spend bonuses are my strategy A, but I use these cards as my strategy B (cash back cards) in between those.
Statistics: Posted by Hannibal Barca — Wed Oct 30, 2024 12:13 am