I recently posted a mysterious Facebook post about free flying and hotels. I should elaborate.
The short: Airline Miles make flying easy.
Getting those miles can be difficult…or can they? It used to be that you had to fly a ton or spend a bunch of money to earn airline miles. That is definitely one way to earn points. The other way is through Credit Card Bonuses.
I should warn you that earning free flights through Credit Card Miles is not for everyone. If you are disciplined and good with your money, you can take advantage of some really cool stuff. For example, in 2015, I spent a week in Europe, a couple days in San Francisco, a week in Hawaii, and even took a cruise. I didn’t pay for a single flight and was reimbursed for the cruise. Crazy. And yes…this sounds like an infomercial.
Here’s how it works:
Open a credit card that offers a big sign up bonus. There will be a minimum spend requirement…something like $3,000 in 90 days. Once you do that, you get a bunch of airline miles.
Wait…I thought you meant free? Why do I have to spend $3,000?
This is where each individual has to determine if this is right for him/her. They key is to remember that you do not have to spend an EXTRA $4,000. Chances are, you already spend money on things like gas, groceries, cell phone, internet, etc. Some people get reimbursed for work expenses, others are getting ready to make big purchases with their tax refunds.
Use the credit card and then pay off the balance. Yes, pay off the balance right away. This ensures that you do not have to pay interest. If you are bad with money or can’t pay off credit cards each month…don’t do this.
If you are worried that you do not really spend $4,000 in 90 days, there are some tricks to help. We can talk about that if you are interested or just research “churning” on reddit. Couples/families are at a great advantage because two or more people can work together to meet the minimum spend. You could also open multiple cards and double the amount of points. Think about taking a nice island vacation, first class, in a decent hotel…and not paying for it. It happens.
OK…so what’s the deal?
So right now, there is a pretty good deal for the Chase Sapphire Preferred Card (CSP). This is actually a pretty good credit card by itself. The deal is spend $4,000 in 90 days and get 50,000 Ultimate Rewards Points. You’ll also get 1-2 points for every dollar you spend. This means you’ll end up with at least 53,000 points just by meeting the minimum spend. You can get an additional 5,000 points for adding an authorized user. 58,000+ points will make some great things happen.
What is great about the Ultimate Rewards Points is that you can transfer those points to a number of different airlines and hotels. For example, you can move 50,000 Ultimate Rewards points into your free Southwest Rapids Rewards account. 50,000 points is usually good for at least 2 round trip flights (depending on how far you go). Southwest goes all over the U.S. and even a few international places like Aruba, Costa Rica, or the Dominican Republic. Or maybe move those points into a United account and go somewhere even further: 50k points can probably get a single round trip to Europe or Hawaii. You can also move points to a Marriott account and stay in a nice hotel at no cost for a couple of days.
The catch
The CSP does have a $95 annual fee…but it is waived for the first year. This means you can sign up for the card, get the points, use the points, and then cancel/downgrade the card before the annual fee hits.
The interest rate is pretty high at 16%- to 23%, depending on your credit history. This is why you MUST pay if off each month.
What about my credit score?
If you are saving up to buy a house or something that might require perfect credit, then opening a new credit card may not be for you. With that in mind, opening a single card is not going to really hurt your credit. You might see 5-10 points drop from your credit score, but those points will come back in about a month. If you pay off your card, your credit score might actually increase. This will lower your utilization while upping your total available credit.
Just make sure to pay it off each month and cancel/downgrade the card before the annual fee hits.
Full Disclosure
While I’ve talked to many people about earning miles/points, this is one of the only times I’ve just posted about it. I was given a referral link for the CSP. If someone signs up using this link, I can get a few points myself.
I can honestly say that this is a good card and is one of the more flexible. If you want to use points to pay for a cruise, this isn’t the best option. The CSP does allow you to use a number of different airlines and hotel chains. I like this better than strict airline cards (A Southwest Visa or American Airlines MasterCard, for example).
Ultimately, I would benefit from you signing up for the card…but you would benefit more. Think of that trip you’ve always wanted to take, but couldn’t really afford. Now, take away the cost of the flight. That trip is much more affordable now.
This isn’t for everyone, but it does work and I’m a huge fan. I’ve taken full advantage of this opportunity and can’t imagine ever paying for another flight. More so, my credit score continues to climb (near 800 right now).
It’s worth checking out.
You can sign up here: https://applynow.chase.com/FlexAppWeb/renderApp.do?PID=CFFD2&SPID=FHRJ&CELL=600V&MSC=1519196289 #sponsored
Please let me know if you do. More importantly, let me know if you have questions. I researched churning for a long time before jumping in and am happy to help. Pull this off and you won’t regret it!