@red259 wrote:
@Broke_Triathlete wrote:I wouldn't suggest doing it. If you are trying to make money then juggling credit cards is not the way to do it. The way I see credit cards is a way to maximize your score. If the card you want and will actually use as a bonus, then have at it. But I certainly won't churn cards for bonuses because at some point I'll have an AA or I'll miss a payment and screwing my credit up. Then all the work I've been doing is for nothing except a few thousand miles here and there. Hardly worth the crappier APR's I'll be paying due to a missed payment from churning and burning.
AA is not a given for churning cards unless you are doing extreme things in which case those people know they are taking on more risk and that is up to them. The risk of missing a payment or not being able to manage multiple cards is definitely a real concern and likely the biggest concern for everyone, so people who are in the habit of picking up multiple cards need to be organized. Its not for everyone that is sure and not everyone is organized enough to track it all.
Going for a bunch of signups in order to make money is also a mistake. These types of bonuses are more about getting additional perks and you really should have the money in your account to cover all the expenses associated with it. I would never recommend to someone who is of limited financial means to pick up a bunch of cards that require spending money and AFs they don't have. If someone has to utilize methods outside the norm to make even the basic initial spend of a card then they probably shouldn't be going for rewards anyway, because no matter what you're going to have to spend money at some point on the vacation. All the points in the world don't mean anything if you do not have the money to finance the rest of the trip.
I think ultimately what I'm trying to say is only open what you can manage and don't be lured int to sign ups if you won't be able to manage the account. The risk isn't worth the reward.
Personal:
@Broke_Triathlete wrote:
@red259 wrote:
@Broke_Triathlete wrote:I wouldn't suggest doing it. If you are trying to make money then juggling credit cards is not the way to do it. The way I see credit cards is a way to maximize your score. If the card you want and will actually use as a bonus, then have at it. But I certainly won't churn cards for bonuses because at some point I'll have an AA or I'll miss a payment and screwing my credit up. Then all the work I've been doing is for nothing except a few thousand miles here and there. Hardly worth the crappier APR's I'll be paying due to a missed payment from churning and burning.
AA is not a given for churning cards unless you are doing extreme things in which case those people know they are taking on more risk and that is up to them. The risk of missing a payment or not being able to manage multiple cards is definitely a real concern and likely the biggest concern for everyone, so people who are in the habit of picking up multiple cards need to be organized. Its not for everyone that is sure and not everyone is organized enough to track it all.
Going for a bunch of signups in order to make money is also a mistake. These types of bonuses are more about getting additional perks and you really should have the money in your account to cover all the expenses associated with it. I would never recommend to someone who is of limited financial means to pick up a bunch of cards that require spending money and AFs they don't have. If someone has to utilize methods outside the norm to make even the basic initial spend of a card then they probably shouldn't be going for rewards anyway, because no matter what you're going to have to spend money at some point on the vacation. All the points in the world don't mean anything if you do not have the money to finance the rest of the trip.
I think ultimately what I'm trying to say is only open what you can manage and don't be lured int to sign ups if you won't be able to manage the account. The risk isn't worth the reward.
Agreed. Someone shouldn't open a card if they are unable to handle the account without shooting themself in the foot.
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@longtimelurker wrote:
@Open123 wrote:From my perspective, credit exists to either minize the cost of borrowing money or maximize a return/rebate on money utilized.
For those who aren't in need of a fixed loan or can tolerate some score volatility, applying for cards to harvest sign-up bonuses points are not only extremely rewarding, but also lots of fun. To me, it's a sort of a hobby to amass them and analyze all the different strategies to maximize their value. It's pretty fun to share ideas with fellow card enthusiasts on how to maximize SPG points at certain hotel, best way to maximize MR through AA, or how to maximize UR with Hyatt properties.
Finally, flying to stay at a nice hotel on a first class fare that one would otherwise would never pay for is a much more memorable experience than a similar value with cash, at least, from my perspective.
For the person can manage his/her finances, enjoy the hobby, and earn a free first class vacation through reaping sign up bonuses, I think it's a fabulous strategy to cycle application to maximize the bonuses out there.
I remember reading something similar early on in my credit "career". where the writer explained that while he could have got ~ $2K cash reward, that would have got lost in the greater scheme of things, while using the points to take his wife first class to Europe was much more meaningful and memorable.
Yes, flying a great first class product is indeed something that leaves a lasting impression, especially when connected to an amazing trip.
@Open123 wrote:
@red259 wrote:Yes, flying a great first class product is indeed something that leaves a lasting impression, especially when connected to an amazing trip.
Flying first class is a really nice experience, especially on some International routes where an onboard Chef prepares a dining experience similar to those in 5 star restaurants.
I don't like to waste money and don't believe in ostentatious spending, and would otherwise never (not even if it's a tax write off) pay the exorbitant cost for a First Class fare. Through no fault of our own, a series of rare events has lead to issuers offering these "golden era" type rewards bonuses, which allows for anyone to experience First Class travel with minimal cost and little bit of effort. If you ask me, this is what "free" enterprise is all about. Making it possible for ANYONE to enjoy this luxury, and not just for those who are fortunate enough to have the discretionary income for it.
+1 I'd never pay for first class out of pocket either, but it is amazing to experience. I wouldn't say its a little effort. I feel like the whole process takes a bit of work, especially after all the hours I spent dealing with AA trying to book CX first class, but in the end it was worth the effort at least for me.