Sunday Success Stories and SPG Limited Time Offer Ends Tomorrow

Posted by Sunday, August 21, 2011, No Comments

 Walid’s success story:

I started signing up for credit cards in late December when I read about a friend of a friend doing this insane around-the-world trip using just miles. And I’ve been hooked since.

So far this year, I have gone or will go to:

- San Francisco for a conference in March (I had to pay for all that since the miles weren’t logged in my account yet, but I spent to meet spend requirements!)

- The Netherlands and Germany for a week on summer vacation (for 62,500 miles from the Delta Platinum 90K deal)

- Orlando for a fraternity conference in July (flight using prior credit card points, hotel thanks to Capital One matching of my Delta miles)

- Boston for Thanksgiving with the family (AirTran $99+99 gift cards from the American Express Platinum reimbursement, plus the remaining through Capital One miles that can be credited post purchase)

- Urbana-Champaign, IL for my younger brother’s graduation in the fall

- Singapore for Christmas/New Years vacation. Here’s the story:

Singapore Water Lilies, photo by Andrew Ingersoll



My parents live in Singapore now and I haven’t been there in about two years. My 100K+ was from the United & Continental deals plus spending, and I just couldn’t find a suitable flight to minimize layovers for a two-week trip. I saw one opportunity for what could have been 65K, but that disappeared the next day while I waited to find out when I could travel. I couldn’t find much better options, so I called Continental and asked for help in booking reward flights on Star Alliance. The operator managed to get me on an outbound flight on Lufthansa and Singapore Airlines on economy class (Singapore Airlines on economy is still much better than most others on economy). And the best part was that she managed to get me a return trip all on business class or better: business class on Singapore Airlines to Beijing, then first class on United to San Francisco, first class on US Airways to Charlotte, and then back to Atlanta. For a long haul flight, flying on luxury helps, especially for someone like me who finds it extremely hard to sleep on a plane.

She told me the total will be 102.5K miles. I told her that, though the return trip offer is nice, I wanted to get a round trip for less than what I had (around 103K+). She corrected me, saying the entire trip was for 102.5K. And to think that the bare minimum I could see on the Continental website was all for economy on United or Continental economy for 130K!

After all that, I’m still sitting on 200K Delta miles, 50K with Capital One, and 50K with Chase. I better start planning my trips for next year!

The target I set for myself when I started this back in December was to be able to fly to Singapore using only miles. I’ve been doing the trip every two to three years and traveling on Christmas/New Years time. It usually ends costing at least $1500. I’m sure others would have been able to fly the same trips for better and for fewer miles, but for someone who does this somewhat passively while working as a professional full time and being a graduate student part time, this is fantastic.
Thanks, Rick, for all that you do,so that we can all see and visit the world for prices we can afford. This has been an amazing year and I hope to continue traveling like this. My next big target is to rack up enough to completely finance a trip to Brazil for the 2014 World Cup!
– Walid
Congrats, Walid, on your successes. We can all do this. Watch for the promos. It never hurts to ask, Take care of your credit and see the world at prices we all can afford.

Tomorrow is the Final Day for the Starwood 30,000 Point Limited Time Offer
Lower minimum spend, no annual fee first year, and 5000 more points than the standard offer? Just sayin’ There is a link in the right-hand blog column.
American Express Premier Rewards 15,000 Membership Rewards Points, NO First Year Fee 3X Airfare 2X Gas and Groceries

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  • Carl

    Great analysis Rick and your figures are conservative and can be maximized. As TPG pointed out today, can easily get 3 cents/mile with SPG C+P. There are also great deals on flights. US gets you to Europe and S. America off peak for 55k in Envoy Class. BA to Easter Island on LAN w/stopovers each direction at 80k Business Class.

    First Class to Africa on Cathay with a Hong Kong stopover for 140k Alaska miles including the gateway flights. And Membership rewards transfer bonuses to BA and Delta have recently been 50%.

    Then there are the transfer promotions like Delta has at the moment and the purchase miles promotions that US has all the time, both of which are great for topping off. And the US Grand Slam is coming up.

    And don't forget the OnePass transfer to Amtrak for 30k per bedroom, NOT per person. Good for 2 zones and includes full board. I just did that today.

  • Anonymous

    Hi Rick, if I remember correctly you said that you did churns every 90 days, am I right? Could you tell why you picked such a period? And also do you start your churn day on 90th day or 91st ? Thanks

  • FrugalTravelGuy

    Anon: I use 91 days+ as it has worked very successfully for me. I never hear "too many recent inquiries" and it gives me four chances per year to do multiple applications.

  • Anonymous

    I hope the Oct. offer lasts a few months, since I just opened a Chase card. They've honestly had "too many" good offers to keep up with this year.

  • Anonymous

    One of Risk's suggestions is, "Can you spread your current spending around between cards so you don't exceed 50% utilization on any one card in any one month?
    Does anyone know that if I prepay the charged amount before the monthly closing date and my credit card balance shows a big fat ZERO in the monthly statement, would that show up as 0% utilization in my records, or will it still still show up as certain %age utilization based on my spend for the month???

  • Chister

    Rick,

    Great analysis! I should start looking into my credit scores to see the damage I have made ;) I seem to remember all the free reports do not give you numeric score numbers. Did you have to pay to get those numbers?

    Chister

  • Anonymous

    What's the mane of the service that you use to view all these inquiries to time the churns? Thank you

  • Anonymous

    Was just thinking the same on Chase. Am hoping to hold off until next year with them since the reconsideration "interview" is getting tougher.

  • Anonymous

    Rick,

    What is your strategy with the older cards? Do you just leave them in the drawer? If they have a fee do you negotiate a no fee card? Between my wife and myself we have accumulated 10 cards with approximately 750,000 miles. Thanks.

    Will

  • Anonymous

    Are these October offers mainly from Chase? I got approved for the southwest card on 7/21 and that's the only Chase card I have. Should I stop applying for Chase cards until then? Thanks

  • Anonymous

    Rick – which services do you use to keep track of your credit scores in 3 bureaus?

  • Anonymous

    Hi Rick, Do you already know which cards you intend to apply for? A little under two months away, I'm sure like you said other promos will surface. I know you probably don't want to say anything because of the (misdirected) heat from the Chase Continental/United release, but this offer in October, is it early enough to include in your catch or are you going to miss this one?

  • Betsy J

    Rick, thanks for sharing this. I find the biggest help in understanding how all of this works is hearing exactly what you are doing. I learned two new things in this post, thanks!

  • FrugalTravelGuy

    Chister: Credit Sesame will give you a numeric score for free.

    Anon: I use Truecredit.com for my three scores but they have jumped up the price to $29.99 for new members, I'm grandfathered in at 9.99.

    Will: I keep my older cards for one year then try to get a retention bonus at the year mark. Some try earlier and actually get two retention bonuses in a year. If they won't give me a bonus I try first to switch to a no fee card or if that is not happening I cancel.

    Anon: I have not decided which cards to apply for in October. I may try the Citi AA cards again as it has been 18 months on the personals for me. And I have another business name I can use for the Biz card. It is too early to tell and sometimes the cards I choose change at the last minute depending on new offers or new information I get.

  • tassojunior

    After a year of heavy apps (and over 700K miles) the credit hit finally caught up with me. My Credit Karma only shows 6 inquiries but my FICO has dropped 15 points to 748. Time to take a break and make sure all balances are paid before statement date.

  • Anonymous

    Hi, same here, could anyone suggest a good site to keep track of all thee credit bureaus? I was able to find some but all of them are a bit expensive 29.99 per month. Thanks

  • Richard

    Hey Rick,
    I'm a beginner on the churning of credit card but I was wondering how you get pass the "only new card members get bonus" part of the terms and conditions.

    Also I was wondering if you have posted a guide on how you do the whole process.

    Richard

  • jphripjah

    Why do you expect a big offer from Chase in October?

  • Scott C

    @Anon @ 10:18

    Nearly every credit card reports your statement balance to the CRAs. You are correct, you can manipulate your utilization % by paying just a few days before your statement generates so that a smaller balance shows on your statement. For optimal FICO scoring, you generally want to have one account report a balance that is 9% or less of its CL (not total CL across all cards) and all other cards report a zero balance.

  • Anonymous

    Tassojunor or anyone: Where do you see the number of inquiries on Credit Karma?

  • travellin’student

    Hi – looking for some thoughts from Rick or anybody else,

    I last applied for cards in mid-May and was thinking of what's next. I have the Chase Continental, Citi AA Mastercard and Visa for 3 cards total. My other cards are no-fee cashback type credit cards that I've had for years. What would anybody recommend to apply for next?

    I usually fly Continental/United/AA/Southwest. I'm not looking for a card with an annual fee that's not waived or something with a very high spend requirement (typically only have ~$1000/month on credit cards).

    Thanks for the input!

  • Anonymous

    @Rick Yep, a million is very possible. :-)

    If you're PC savvy, make up a spreadsheet to keep track of everything. If not, use post-it notes. Just remember to keep track of everything. Wife & I are over a million so far this year plus over 4K in cashback. This excludes coins.

    @Anon If you pay off your balance pre-statement you may show a 0% utilization. The banks don't necessarily report to the bureaus the same time they print the statement.

    @Anon Citi and Discover have good credit monitoring programs. Citi's can be found for $5 a month if you google. Discover's is something like 70 or 90 for the year.

  • Charles Clarke

    @Anonymous – "Does anyone know that if I prepay the charged amount before the monthly closing date and my credit card balance shows a big fat ZERO in the monthly statement, would that show up as 0% utilization in my records, or will it still still show up as certain %age utilization based on my spend for the month???"

    It depends on when your credit card company reports to the credit bureau versus when the statement closes. Some(From looking at my credit reports – most) do statement closing and some do other dates. Try it for yours and then when you check your reports, you'll see whether they do or not. You can also try calling them and asking when they report to the bureaus.

  • E. in P.

    Rick (and anyone else who might have input),

    I'm new to this whole card churning thing. Your site has been an INCREDIBLE resource and I appreciate your daily efforts so much! I've been reading a ton and taking in all I can, as I'm a travel junkie with a low income at the moment and this is a great way to be able to continue seeing the world.

    So far I have the following:
    Chase United Mileage Plus Visa (from 2009) = 45k bonus
    Chase Sapphire Preferred = 100k bonus (thank you, Rick!)

    I'm trying to decide what to do next. Without the mint, I can't hit high minimum spends at the moment. (Amazon for 1k/mo. + my regular low spending is all I can think of) I'm pretty set on doing the 2 Citi cards for 150k and am thinking of applying today. My credit is excellent (854 Vantagescore) so I'm not too worried about being approved. My dilemma is that I think I should try for 3 cards this churn, but not sure of which for the 3rd. I'd like to do SPG, but can't make the 4,500k min. spend with the 2 Citi cards being another 6k min. in 6 months.

    Also, my older United Chase card annual fee is up now and I have to either cancel by the end of the month or somehow convince them to reconsider the fee… which didn't work when I tried 2 months ago. Should I wait to apply for any other Chase cards for now until I get that card figured out?

    Any other thoughts?

    p.s. – I was excited to find that using my Ultimate Rewards Points (from Chase Sapphire Preferred) yesterday to book a $350 ticket was only 28,000 miles – vs -50,000 and a less-than-ideal itinerary when I tried to book through United/Continental. I'm glad I didn't immediately move those Ultimate Rewards straight to my Continental account like I had been planning to, because the no black out dates and 20% less really paid off! :)

  • narikin

    "Can you spread your current spending around between cards so you don't exceed 50% utilization on any one card in any one month?"

    Damn! I wish I'd known this earlier. I filled one card with a $15k limit to $14.8k, and then paid it all off a day after the statement. needed to hit $30k annual spend for a bonus. This explains why my credit score took a hit few months back, when I am, amply funded.

    I could easily have spread the amount around my many cards, just never knew this little fact. Surely better for credit agencies to look at total amount owed over all cards, than what's on 1 single card. Ack!

  • Anonymous

    Rick,
    Doesn't all this churning leave you with a very low average length of credit history number? According to Credit Karma mine is 5 yrs 8 months which seems to hurt my overall score. The score is still very good and I've never been rejected by any card but am still concerned about it.
    Thanks
    Rich (Scottsdale,AZ)

  • MK

    Hi Rick,

    I just spoke to Chase because I had applied for the Southwest Rapid Rewards Card in July. The rep just told me that I have too many recent inquiries. Since November of last year I applied for two Chase cards BA & Continental. I canceled the Continental about three months ago. Besides that I got the SPG and the Citi AA card. He told me that getting 4 credit cards in one year is too much and that Chase considers this type of behavior risky. My credit score is 758 according to Credit Karma. I told him about never being late ever for any payments and asked him to lower my spending limit on my BA card in order to give me the Southwest Card. I also wanted to apply for the Chase Sapphire Card and the one that comes out in October.
    What would you do if you were me? You seem to be applying for 12 cards per year no prob. What are you doing differently?
    Thanks, MK


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