Paying rent with card every month for points

[SouthJamaica]

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@hrdsurfer wrote:

My landlord takes credit cards for rent payments for a 3% fee. I was thinking about using my VX card to make the payments every month. Obviously if my goal was normal cash back, this would be a terrible idea, but if I were saving for an aspirational trip abroad this would make more sense, right? If I got 50k points by using my card on rent for the year, and was able to get a first class ticket, certainly I would come out ahead, or is there something I'm missing? The only thing I can think is that I would have to take the hit on an extra $80/mo for card fees.

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If you can get better than a 3% return on the payments then sure, you've got nothing to lose. Just be sure about your math.

[wasCB14]

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@Anonymous wrote:

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@FireMedic1 wrote:

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@coldfusion wrote:

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@FireMedic1 wrote:

$80???????? Most are 3-4%. Anyways.

https://creditcards.wellsfargo.com/bilt-rewards-credit-card/?sub_channel=SEO&vendor_code=G 

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$80 works out to approx. $2700/month rent, definitely not out of the ordinary in a number of metro areas including Boston.

More to the point though, OP should establish the valuation of points when it comes to the specific airline, route, and seat type/fare class before moving forward.  There can be a big difference in valuation between an international flight in business class vs. domestic economy.

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@coldfusionWhoa. Cant imagine.  Nothing like that around these parts. Insane.

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And then there's the Bay area on the other coast...

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Bay Area rents are high compared to the national average, but are actually surprisingly modest in the context of a ~40x price-to-rent multiple and strong tenant protections.

[Anonymous]

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@wasCB14 wrote:

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@Anonymous wrote:

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@FireMedic1 wrote:

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@coldfusion wrote:

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@FireMedic1 wrote:

$80???????? Most are 3-4%. Anyways.

https://creditcards.wellsfargo.com/bilt-rewards-credit-card/?sub_channel=SEO&vendor_code=G 

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$80 works out to approx. $2700/month rent, definitely not out of the ordinary in a number of metro areas including Boston.

More to the point though, OP should establish the valuation of points when it comes to the specific airline, route, and seat type/fare class before moving forward.  There can be a big difference in valuation between an international flight in business class vs. domestic economy.

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@coldfusionWhoa. Cant imagine.  Nothing like that around these parts. Insane.

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And then there's the Bay area on the other coast...

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Bay Area rents are high compared to the national average, but are actually surprisingly modest in the context of a ~40x price-to-rent multiple and strong tenant protections.

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The tenant protections certainly are great for renters (less so for landlords!) but the "modest" rental ratio just reflects that house prices are SO high and many renters cannot see a path to ownership...   But there are cheaper options available outside SF itself.

[Remedios]

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@hrdsurfer wrote:

My landlord takes credit cards for rent payments for a 3% fee. I was thinking about using my VX card to make the payments every month. Obviously if my goal was normal cash back, this would be a terrible idea, but if I were saving for an aspirational trip abroad this would make more sense, right? If I got 50k points by using my card on rent for the year, and was able to get a first class ticket, certainly I would come out ahead, or is there something I'm missing? The only thing I can think is that I would have to take the hit on an extra $80/mo for card fees.

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Well, I think you're missing the part where you're losing money. 

Aspirational travel .... that's TV commercial stuff, like when they have someone who barely looks 20 standing somewhere in Himalayas just by virtue of having CSP (or any other card). 

It really doesn't work like that, and to me, it's just a poor financial decision. Instead of throwing $80 every month, put $120 aside. When the time comes for your trip, charge it on your card, you'll earn points for that, you'll have money set aside to pay off card. 

You have a whole year to earn points, so if first class is goal, just focus all your spend on that particular card. 

Don't try to force spend, no one has won that game. Travel cards are more about perks, less about earning on them...there is no card that's going to help you see the world unless huge spend is present. If you don't have a huge spend, don't inflate it by losing money.  

[hrdsurfer]

I completely agree with your point, but I'm not sure if paying rent is forcing spend, even if there is a fee involved. My only aspiration is to book a business/first class seat. If I can do that by transferring to partners and using 150k points, when the SUB is 75k, I don't see that as too much of a stretch. 

If I was making 30k/year and banking on 75k in spend to get there, then that would be a stretch. My SO and I have a household income of 275k tho, so I don't think those aspirations are out of the question. Especially if we're just buying stuff we're going to buy anyway. 

I'm just trying to get the most value out of the points, and I don't see that value in domestic travel or coach tickets. It does look like it's there for business and first. 

[CaptJOB]

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@hrdsurfer wrote:

I completely agree with your point, but I'm not sure if paying rent is forcing spend, even if there is a fee involved. My only aspiration is to book a business/first class seat. If I can do that by transferring to partners and using 150k points, when the SUB is 75k, I don't see that as too much of a stretch. 

If I was making 30k/year and banking on 75k in spend to get there, then that would be a stretch. My SO and I have a household income of 275k tho, so I don't think those aspirations are out of the question. Especially if we're just buying stuff we're going to buy anyway.  

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Highlighted points for clarity. $1,060 in fees for just over 60k points is probably only a little less than what it would cost to buy points outright during a miles sale for a lot of airlines. So it's not forcing spend but it's not really an awesome return. If you just do it for a month to hit the SUB? Totally reasonable.

That being said with $275k income I imagine you don't need to stretch that much. I would look into where you want to go, what airlines offer the best award pricing for that route, and try and earn as many points as possible to get the amount needed. Dining programs, shopping portals, etc. 

Also remember premium saver award space is a lot of work to look for so be ready to spend a lot of time searching for it and make sure to be flexible. Blogs always mention that like it's fine print but it's really the most important part of scoring an aspirational redemption. 

Anyways good luck with whatever you decide to do!

[hrdsurfer]

That's actually a really good point about buying the miles outright. Also about the legwork required for award travel. I guess it comes down to is $1000 in fees the best use of that money. Thanks!

[Anonymous]

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@hrdsurfer wrote:

That's actually a really good point about buying the miles outright. Also about the legwork required for award travel. I guess it comes down to is $1000 in fees the best use of that money. Thanks!

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And on the other hand, if you really need/want those points, is this the "best" way to get it.   And, the answer may well be yes!  Given it's a small amount relevant to income, paying rent and taking the charge is a pretty painless way to get the points.   Other options, such as prepaying bills and/or stocking up on stuff may not incur the charges but can be a lot less convenient, given the volume needed.    Of course, there's always [the taboo stuff we can't talk about here] but I am not allowed to say that!

[wingennis]

When I first got the Venture X it had the $200 AirBnB credit.  They counted my rent toward that credit the first time I paid it with that card.  That was sweet.