Will Credit Card Applications Dry Up as a Source of Points? [EXPIRED]

October 8, 2015

Joe Cortez

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From the onset of this article, I give you permission to call me Chicken Little (which wouldn’t be the worst thing I’ve been called lately). Despite the warning, I am happy to inform you that the skies are not falling and credit cards are still an absolutely feasible way to earn points and miles towards free miles (especially if you’re using the FTG Wallet). However, I maintain a personal concern that this method of earning points may not last forever. Call it anxiety, trepidation or whatever you may, but the concern remains: Will credit card applications someday dry up as a source of points and miles?

I believe it is prudent to ask this question now because of a number of changes we have seen in the past year. As Rick noted last August, American Express is limiting frugal travelers to one card bonus per lifetime, which hampers the earning abilities of many travelers. More recently, Chase changed the terms and conditions of their rewards-earning cards to mirror a similar policy. The terms and conditions now clearly state: “Chase cardmembers who currently have or have had a Chase credit card in any Rewards Program associated with this offer, may not be eligible for a second Chase credit card in the same Rewards Program.”

Though this could be interpreted to be focused on Ultimate Rewards-earning cards, the wording is ambiguous enough to apply to any number of Chase credit cards. Could it plausible that if I’ve held a Chase Southwest Rapid Rewards Credit Card or the Chase Marriott Rewards Credit Card then my bonus is limited to one bonus per lifetime on each card?

My intentions are not to create distress or panic among the community. However, my concerns remain that the proverbial writing could be forming on the wall. Do you remember when frugal travelers would earn points from buying coins from the U.S. Mint using their card of choice? How about that time not too long ago when pre-paid debit cards and Vanilla Reloads were all the rage among frugal travelers? Those two deals have since ceased, much to the chagrin of points collectors everywhere.

What does this ever-so-subtle change among the terms and conditions mean? It means that, starting someday soon, frugal travelers must be more prudent in their application processes. Between Rick’s Picks and the wealth of knowledge available here, travelers can find plenty of ideas and inspiration to get closer to their next great trip.

More importantly, the time may come very soon that this source of miles may not always be available. In this hobby, change is the only constant and nothing last forever – even the rain of miles coming from our good credit management. I leave you with this charge: let’s make the most of our mileage earnings while we have the chance to do so.

Is it time to start looking for other ways to earn miles? Or are my concerns just the fears of an overactive imagination? Let me know your thoughts in the comments below!

[Image via Getty]

Joe Cortez Joe Cortez is an award-winning journalist and blogger focused on travel, leisure, and loyalty programs. As a frequent traveler, Joe has flown across the United States, Canada, and Europe primarily on award bookings and discounted flights. In addition,...
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The Importance of Screenshots With Points and Miles Offers [EXPIRED]

Bob Bornstein

Wow, echoed my thoughts for the past year or so.
Rick I

I just got an email from a long time reader today that has generated between he and his wife over 1 million miles and points through credit card sign ups in the first 9 months of the year. Like the other commenter many have anticipated the end of road coming soon. But I’ve been hearing that some tune for the last ten years. It may tighten but I don’t see the game ending
robertjbarron

I think part of it depends on the economy. Credit Card companies make money by people signing up for cards- or re-signing up for them- and the card companies hope people will carry a balance, so they can be charged exhorbitant interest rates. I’m guessing that if the economy goes back into the tank – or keeps growing ever-so-slowly- that we might see the return of large signup bonuses; or the card companies will relax the one-lifetime-bonus-policy-per-card- just to get more customers. But I admit that everything I have just said is (pure) speculation.
http://www.edwingoitia.com Edwin Goitia

This does come to mind for me as well. Like, all these free vacations have been great, but how long will it really last?

http://www.frugaltravelguy.com Howie Rappaport

@TheEdwinGoitia:disqus until it becomes unprofitable to do so. We are all such a small drop in the bucket with the great redemptions we get … I don’t see the end any time soon 🙂

Mark D

My wife and I are both retired. We have been at this for
last five years hot and heavy but have had the dual advantage of a long credit
history and maximum flexibility where travel is concerned.

We have at this point a similar problem to Rick’s ie not a lot of cards we have
not had once or even twice. Gone are the days when our app-o-rama was 6-7 cards
each at a sitting with vanilla reloads (CVS) to the rescue on the “spend
side”. It is still inconceivable to me that most banks don’t just total
the number of credit cards we have and realize the potential risk of granting
us together $500,000 worth of credit lines across 6 or 7 banks.

We are slowing a bit from our past 90-95 days per year out of the country with
all flights and almost all hotels covered by points and miles. Looking to the
future the days for “big churners” in my opinion are very numbered
and the complexity and uncertainty of getting rewards both on the earning side
but especially the booking side are steep but not impossible especially for
those of us with total travel flexibility.

Another key to the evolving game in my option is to have a broadly diversified
portfolio of points and miles with special concentration in the flexible
currencies SPG, Chase Ultimate and AMEX rewards.

Note the increased difficulty of these reward currencies over the last 18
months or so and the ever changing nature of earn and burn is not getting
easier. So my sentiments are with the author of this article.

Enjoy for now ….

Mark and Carolyn
Berneigh

Amex doesn’t enforce that policy at all. In the past year, I’ve had the SPG, Premier Gold Rewards and Blue Cash Preferred, got the sign-up bonus on all three.

You also have to look at where rewards come from: interchange fees. Credit card companies are still making a killing on transaction fees and interest.

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