Consumers have figured out how to game rewards credit cards- WSJ article

[Luvtoride]

I wasn't sure where to post this, but there has been much discussion on these boards about the premium credit cards that many of us use to accumulate miles/ points/ travel credits for all the traveling we do. I thought this article in today's Wall St. Journal would be of interest to many of you, although most of us have already figured this out months if not years ago. Apparently, the banks are realizing that consumers have figured this out too...duh!

Here is the link. I hope it works for all.

https://www.wsj.com/articles/reward...544a9b3cc07217d3b39fb&ref=article_email_share

Brian

 

[x3 skier]

From the Article: "Getting the calculation right—without alienating customers—is crucial."

Well DUH.

The banks must think people are stupid. If all it takes is a free subscription to sites like The Points Guy to find out where is the most "free money" is on cards, and one bank or financial outfit offers a good deal, people (like me) will "game" the system.

I have zero loyalty to any bank and freely switch and use cards to my benefit. One exception is my Gold AMEX card that I've had since 1966. That's purely sentimental reasons (and the 10000000 or so points I've accumulated over that time). The rest come and go and use or retire as the deals expire.

Cheers

 

[bbodb1]

At least in our situation and in this neck of the woods, there just aren't enough places to spend the kind of money needed to accumulate decent rewards. I feel like we're doing as much as we can using the Sam's Club Rewards Card (wrong title for card....) but until a mortgage payment can be made using a credit card (and it is NOT financially silly to do so) we just don't spend that much per month on purchases that can be made on (with) a credit card.

 

[Luanne]

I did the best accumulating points when I could put my dd's college tuition on my credit card.

 

[VegasBella]

I don't think the majority of Credit Card consumers are the 'gamers' who the article is about. I think those of us who are savvy credit users are in the minority. But like pro gamblers, we cost the banks more money than they want to spend. Unlike gamblers, the banks can't just ban us. But I think a lot of us are going to get fewer rewards.

 

[AndySamuels]

Yep. I got a Delta Skymiles AMEX but should have waited a week. I got 60K miles instead of the 75K I could have received. May open up another card later this year. Need to let some hard inquiries drop off my credit score first. Bought a new house after moving last year. That always drops the credit score quite a bit.

 

[am1]

I had up to 15 before but now have 0. My guess over 5 million points on sign up and spends over 10 years.

 

[WalnutBaron]

I'm one of those Chase Sapphire Reserve customers the article speaks about, and I signed up when the bonus was 100,000 Ultimate Rewards points back in 2016. Unlike the gamers, though, I have renewed my card the past two years and will renew again this year. The rewards are substantial, especially if used for travel because, if you use the UR travel portal for air, hotel, or car reservations, you get a 20% bonus kicker on the value of your points. It's such a great program. Chase gave me a substantial signing bonus, so I feel obligated to make sure they earn back their merchant fees from the charges I make. They'd better, because they're not earning any interest from me as I pay my bill in full each month.

 

[Luvtoride]

I'm one of those Chase Sapphire Reserve customers the article speaks about, and I signed up when the bonus was 100,000 Ultimate Rewards points back in 2016. Unlike the gamers, though, I have renewed my card the past two years and will renew again this year. The rewards are substantial, especially if used for travel because, if you use the UR travel portal for air, hotel, or car reservations, you get a 20% bonus kicker on the value of your points. It's such a great program. Chase gave me a substantial signing bonus, so I feel obligated to make sure they earn back their merchant fees from the charges I make. They'd better, because they're not earning any interest from me as I pay my bill in full each month.

I’m in the same situation as you WB. I use my Sapphire Reserve card exclusively for dining and travel (except Marriott) earning 3x the points for all these charges. With the 50% bonus for using the points for Ultimate rewards travel reservations, it’s like getting 4.5% cash value for these charges. Also, some of the other benefits of the card like the airline lounges add even more value to this card. This card along with my Marriott Premier Plus card at 2x points for all non- Marriott charges (and 6x for Marriott) are the primary cards I use for almost all my purchases.


Sent from my iPad using Tapatalk

 

[CalGalTraveler]

After holding a few of the same no fee credit cards for years, we jumped into the game in 2015. Have been collecting and using points since with about 19 cards between DH, me, and two businesses. Slowed down this year to simplify by cancelling several cards and not applying for new ones except for SWA companion pass or to fill specific gaps.

We generate a lot of spend with two college tuitions and two businesses, however the sign-up bonuses are the fastest way to earn. We've enjoyed free flights and discounted nights.

My sense is that this party will end soon.

 

[x3 skier]

The Points Guy has some comments on the WSJ Article. Of course his livelihood depends on the “game” continuing, so he says it will continue but he does make some valid points.

https://thepointsguy.com/news/critical-points-end-isnt-near-for-credit-card-rewards/

Cheers

 

[WalnutBaron]

The Points Guy has some comments on the WSJ Article. Of course his livelihood depends on the “game” continuing, so he says it will continue but he does make some valid points.

https://thepointsguy.com/news/critical-points-end-isnt-near-for-credit-card-rewards/

Cheers

Thanks for sharing this. I read the response from The Points Guy blog this morning with interest. One item the blogger did not address from the Wall Street Journal article is the contention that big retailers like Amazon, Home Depot, and Target are applying heavy pressure in the form of lawsuits on the banks to reduce the fees they charge for the banks for consumer and business use of the cards. If the fee structure is reduced, the gravy train of goodies is going to be severely reduced.

 

[CalGalTraveler]

Although I read the travel blogs and find a nugget now and then (e.g. getting Hyatt lounge passes via MLife status for free, SWA companion pass), I find the content tiring because they keep pimping credit cards and there are diminishing returns for us. The Points Guy is the worst and have stopped reading him. I also stopped reading bow tie because he became too repetitive and simplistic. I now skim Boarding Area, Doctor of Credit and occasionally Flyertalk and call it a day.