In this post you will learn:
- How do credit cards make money
- How to make about 2000$ in free flights
- How to make 150$ refunds in the next year
(Photo is a picture of complimentary food/alcohol with priority pass access. Another nice perk of this credit card)
33.33% ROI (or a 150$ gain out of 450$)
I've been trying to convince all my friends to get this credit card. Honestly, I also beg you do it, as long as you think you can :
- spend more about 600$ in travel expenses in the next year. Travel expenses include any expense for the following. It can be in your hometown, for example everytime use a meter in my town, I get reimbursed. Also, the reimbursement is automatic right after you charge the credit card (so no cash flow issues).
- Hotels and Airbnb.
- Taxi, Uber,Lyft
- airline tickets.
- rental car fees.
- Parking fees
- it does not include Gas.
- Pay your credit card on time
- Have decent a credit score.
If you do, then you make 150$ guaranteed (a 33.333% return).
How to play the game:
Credit cards companies are beefing up the rewards and benefits to get the big spenders. Remember that credit card companies (including banks that emits them) make about 2.5-3.5% in fees for every transactions. As a business owner, I know this too well. But as a consumer, you are king only if you're kind of person to be careful to pay everything in time.
Why a no-brainer?
Why is the Chase Sapphire Reserver a no-brainer?
You make 150$ guaranteed (or 33.33%) the 1st year.
- The reason is because the card gives 300$ cash back for travel expense every calendar year. But the yearly fee is calculated on 1 year based on date you open the card. For example, if you open the card in September 2016, you get:
- 300$ reimbursed for every expenses between September 1st to December 31st.
- 300$ for the expenses between Jan 1st 2017 and August 31st.
- If you close the card on August 31st, then you only pay 450$ but got 600$ worth of reimbursements.
You get 100000 travel points that can be transferable to any airlines. This includes United, Delta, KLM, etc... Pretty much all the major airlines. This alone is worth 2000$+.
- You get a "Priority Pass" card that allows you get into airport lounge for free. This comes handy, especially I'm traveling as I'm writing this post and having access to lounge is a big perk.
- You get 3x points when you spend at restaurants.
There are more perks, but those alone are worthy enough to get this card. Again, I believe this is a no-brainer.
how not win the game
Credit card companies make a lot of money with late fees, so don't be that person. Here's a few tips.
- Create a calendar reminder to pay in full every months.
- Think twice before spending anything. Ask yourself, will this purchase bring value to my life.