Unlocking $5,000 a Year by Leveraging Credit Card Bonuses
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Chapter 1: Introduction to Credit Card Bonuses
Imagine being able to turn an investment of $700 into $1,500 in just four months with absolute certainty. Sounds appealing, right?
Most individuals with a sound mind and basic math skills would eagerly hand over that $700.
However, what if I offered you 150,000 points as a signup incentive for a credit card that carries a $700 annual fee? Many would likely decline.
The card in question is the American Express Platinum in the U.S. When used wisely, Amex points typically hold a value of approximately 1.5 cents each, making those 150,000 points worth about $2,250. After accounting for the annual fee of $695, that leaves you with a net gain of $1,550.
Furthermore, after a year, you can close the account and have made a fantastic investment while enjoying various perks throughout the year, such as global lounge access, hotel discounts, Uber credits, and streaming service credits. It's an incredibly advantageous deal.
Of course, you must consider factors like the potential impact on your credit score and the need to meet spending thresholds (which can vary based on your lifestyle, though there are strategies to easily achieve these). However, upon closer examination, these concerns often prove to be manageable.
Section 1.1: Credit Cards I Opened
Here’s a summary of the credit cards I applied for, along with the net benefits I gained from their bonuses. This doesn’t even factor in the additional points earned through spending!
- Amex Gold: 90,000 points / $250 fee = $1,100 value
- Amex Platinum: 150,000 points / $695 fee = $1,550 value
- Venture X: 90,000 points / $395 fee = $955 value
Total net benefit: $3,610 (plus any rewards from spending multipliers).
Section 1.2: Understanding Fees
You might be surprised to learn that the actual fees associated with these cards can be significantly lower than what’s advertised.
Take the Venture X card, for instance. It offers a $300 travel credit every year, which can be used immediately upon account opening (the Capital One portal is one of the best, leveraging Hopper’s services). Additionally, you receive 10,000 miles annually. This translates to a value of about $450 from a $395 fee, effectively meaning they are paying you $55 just to sign up!
The Amex Gold card also provides $120 in Uber credits each year and another $120 for Grubhub, Shake Shack, or the Cheesecake Factory. If you utilize these benefits, your fee drops to just $10.
For the Amex Platinum, you receive $200 in Uber credits annually and $240 for streaming services, among other perks. This brings the effective fee down to $255.
By recalculating based on these observable benefits, your total gains can rise to $4,740.
It's truly a no-brainer.
If you're interested in learning more, feel free to reach out or follow me! Additionally, if you’re considering applying for these cards, here are my referral codes (note that official Amex offers might be more advantageous than the referral codes):
- Venture X
- Amex Platinum
- Amex Gold