MilesBuzz! - If You Had to Charge $25K before Dec 31, What Would You Do?

I'm pretty certain the offer I had for the US Airways Dividend Miles MasterCard gave me 10,000 EQM. Despite that exact wording on my welcome letter, they're now claiming the only way to get those miles is to charge $25,000 within a year.
Since Elite status is determined by calendar year, I would now have only till the end of '07 to do it.

While I consider my legal options with Dividend Miles, I'm wondering: What clever suggestions have you got for running 25K through my card?

I already did a $10K balance transfer. Don't know if that counts.

Thanks.

Buy a new car? Home remodelling? Nice vacation? Any business expenses? Holiday gifts?

Prepay at a reputable business where you know you will use their services? For instance, some years ago, I prepaid $2000 to my dentist to reach a certain spending level at Amex. I used up my credit in no time.

Prepay businesses and utilities (PGE, Cable, Internet, Cell Phone, auto/house insurance, USPS stamps, DMV fees, medical). Buy alot of gift cards to places you frequently shop (make sure they are the non-expiring/no monthly fee types). Offer to pay for big purchases for your family or people you trust to pay you back. Pay for business expenses (gifts, travel, meals, etc) and submit for reimbursement. You could pay taxes but it usually costs a % to do that.

What happens if you buy a really expensive, fully refundable international First-Class ticket (or multiple tickets if necessary), and then get a refund for them after the miles have posted?

What happens if you buy a really expensive, fully refundable international First-Class ticket (or multiple tickets if necessary), and then get a refund for them after the miles have posted?
Then you've committed an ethical boo-boo.

I already did a $10K balance transfer. Don't know if that counts.


Unfortunately :(, I don't think that the balance transfer counts towards the $25k spend - at least it didn't when I signed up for the US MC.

What happens if you buy a really expensive, fully refundable international First-Class ticket (or multiple tickets if necessary), and then get a refund for them after the miles have posted?

I like this idea.

Not necessarily for use here, but sounds like a safe, convenient way to make a large refundable purchase. Two FC international seats can run $30K+, can be purchased online 24 hrs every day, months in advance.

I don't know how the cancellation of refundable airline tickets will impact the EQM bonus. Clearly, if you buy the tix for October '08 flights, and are willing to tie up $25k for 11 months, you'd have been a US elite for at least 10 months before anything happened - and likely then, nothing would happen.

But what if you refund in January? What's the impact then? I don't know...

I'd go the gift card route. Since you travel, it shouldn't be hard to select the vendors you'll use most often in 2008 and pick up a few $5k cards. Some airlines will immediately kick in elite status with certain levels of gift card purchases - but read fine print before you buy anything. (Pay close attention to whether the card is usable for travelers other than you or usable on codeshares or other alliance metal.) Marriott gives you a 10% discount when you buy gift cards larger than $1000. Hilton probably sells 'em too, but I'm not aware of promotions. (Marriott always seems to run gift card promos...)

And of course, Home Depot or any other vendor you use is a good option. Check your favorite airline mileage mall for promos - I bought a $2,500 Home Depot gift card once and picked up 25k AA bonus miles for doing it. We were redoing a room anyway...it was like free miles.

if you buy refundable tickets just hope the refund happens quickly, otherwise it's expensive credit card interest. I had UAL tickets that took 8 weeks to get the money credited (after I cancelled them).

I'm pretty certain the offer I had for the US Airways Dividend Miles MasterCard gave me 10,000 EQM. Despite that exact wording on my welcome letter, they're now claiming the only way to get those miles is to charge $25,000 within a year.
Since Elite status is determined by calendar year, I would now have only till the end of '07 to do it.

While I consider my legal options with Dividend Miles, I'm wondering: What clever suggestions have you got for running 25K through my card?

I already did a $10K balance transfer. Don't know if that counts.

Thanks.
If you own a house, you could charge your property taxes.

... they're now claiming the only way to get those miles is to charge $25,000 within a year....

I already did a $10K balance transfer....
Just a friendly reminder.

Factor in the finance charges/interests associated with the "new" $25K you are going to run thru your card, on top of the fees with the $10K BT you'd done.

Not sure if you'd got any 0% offer for both BT and purchases. If not, those fees do add up substantially and will be very costly for the miles (EQms or not).

I was assuming the OP would pay off the $25k immediately. The cost is dependent on how long he'd otherwise actually spend the $25k in a normal world - he's giving up liquidity and possible investment income on some amount of money there.

The other option - leaving it on the card and incurring interest charges - is so brutal that I'd say it's not worth it. US Silver status is not worth a big cash outlay in credit card interest charges of 18% or whatever godawful rate that card has.

You need to evaluate how much you will lose by tying up your $25000 for a while versus how much it would cost for a mileage run. The mileage run may be cheaper if you have the extra time.

Google checkout allows you to collect CC payments with no fee to either seller or buyer...

Google checkout allows you to collect CC payments with no fee to either seller or buyer...

Get 13 people here to send you $2K and you send them $2K each, everyone has their funds right away, everyone gets the miles or hotel points. It just takes trust.

JudyJFLA

Supercertifcates at giftcertificates.com (www.giftcertificates.com/) don't expire

There are a few options here (https://secure.worldwildlife.org/ogc/ogc_egHome.cfm).

Ask friends who run a lot of business expenses through a card every month and offer to cover the rebate they get (plus a little extra) to run 25K of their expenses through your card.

If I knew you I'd certainly do that for you, it makes little difference if I collect my 1% rebate from my credit card company or via a check from you.

I'll be charging my son's tuition for next semester.

find someone (like me) who needs to actually charge that much and pay their things for them, then have that person give it right back to you in cash.

I could do that, I think. There'd be a service fee, of course. Maybe some sort of mileage gig?

;)MM

why spend $25,000 for 10,000 eqm buy a ticket across the pond...mileage run?

Ok, the credit card offer fooled you somehow... :rolleyes:

But do I see it right that you really consider running 25K $ through your card just to get a 10K Bonus (well, admitted plus another 25K for the purchases) :confused:

Heck, you can catch Bonus miles everywhere... dont buy something that you didnt plan to get anyways ! It is still money !

What happens if you buy a really expensive, fully refundable international First-Class ticket (or multiple tickets if necessary), and then get a refund for them after the miles have posted?

+1

Wirelessly posted (BlackBerry8830/4.2.2 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/105)

Google checkout allows you to collect CC payments with no fee to either seller or buyer...

Get 13 people here to send you $2K and you send them $2K each, everyone has their funds right away, everyone gets the miles or hotel points. It just takes trust.

JudyJFLA

Or just send money to yourself through Google Checkout

If you need the 10K for this year - do a run. A heck of a lot cheaper. The 25K spending converts 10K miles to EQM miles every year, not just the first year. ANd I've gotten the same promo on both VISA and MC. It has always been Spend 25K, get 10K of it converted. I also got the 15K/20K/25K miles - not EQM's - (pick a promo) for making my initial purchase.
Eileen

Pre-pay a travel agent for travel you will take in 2008

You can pay property, income, or other taxes at sites like officialpayments.com for a convenience fee (generally 2.49%).

If the points are worth more than 2.5 cents to you, this can be a clean way to charge off a bunch at once that would otherwise need to come from a bank account.

But what if you refund in January? What's the impact then? I don't know...

I'm pretty certain the answer is: nothing.

Elite status is "calculated" some time after year's end, but well before February 28 (or 29). Once the batch program is run, that's it -- you're either elite or not. There's no later process to make sure you still qualify.

If you need the 10K for this year - do a run. A heck of a lot cheaper.

Not so fast . . .

If I had a friend with a Costco merchant account, they'd be able to charge at 1.65% on a Visa or MC. Don't know the Amex rate, it'll be higher. Let's say 2% -- that's $500. For that I'd get my elite miles, 25,000 more US miles (which I value at nearly $500), plus up to fifty days of float. At 5% APR, the float is worth $171 before taxes.

In short, I'd do it in a heartbeat before considering a run.

(Added annoyance: card only has a $13,500 credit line. But still.)

I've always thought that this would be a decent niche business. You get a merchant account with low fees and charge FTers a modest markup to churn their credit cards.

It wouldn't last long because the credit card companies don't like anyone who knowingly treats cash advances as purchases.

If I had a friend with a Costco merchant account, they'd be able to charge at 1.65% on a Visa or MC. Don't know the Amex rate, it'll be higher. Let's say 2% -- that's $500.
Assuming the "friend" is not the owner of an airline, hotel, etc. the standard merchant rate for Amex is 2.95%. That's what I pay Quickbooks, or even Amex if I process through them directly. Not sure about the Costco merchant account.

So that's $737.50, not $500.

...the standard merchant rate for Amex is 2.95%.

The Amex rate depends on several factors (such as volume).

OP, if you're going to go ahead with this idea of charging $25k, you should know that any charges made after December 3rd, 2007 (and NOT Dec. 31st) will go towards next year's qualification since they will post in your January 2008 statement.

I called and checked because I was wondering about purchases I'd made last December counting for this year (which they do).

OP, if you're going to go ahead with this idea of charging $25k, you should know that any charges made after December 3rd, 2007 (and NOT Dec. 31st) will go towards next year's qualification since they will post in your January 2008 statement...
Bolding mine.

I doubt it is true. I think it should depends on the billing cycles, instead of the arbitrary cutoff date.

Not everyone's statement closes on the 3rd. It sounded to me your statement closes on the 3rd of each month hence your charges after 12/03/07 won't be "posted" (or generate miles) until 1/3/08. Not until we know the statement date of OP, no 12/3/07 cutoff conclusion should be drawn.

We watched our US MC purchases pretty closely this year, since I wanted to switch to my VISA as soon as I hit 25K. By my records, I had made it and called to see when it would reflect in my preferred miles. Asked what they had for my total spent in 2007. The amount was less. She said the year starts with Jan 1 no matter when your cycle ends. Any charges from Dec which appeared on my Jan bill didn't count. (Darn there went almost 2k in Holiday gifts!). So I think he'd be good with purchases up to Dec 31.
Eileen

If I have to charge 25K, then I would use my citi AA cards. With 10K purchase, I get 10K bonus. That's 50K miles good for a ticket to Japan by AA.

We watched our US MC purchases pretty closely this year, since I wanted to switch to my VISA as soon as I hit 25K. By my records, I had made it and called to see when it would reflect in my preferred miles. Asked what they had for my total spent in 2007. The amount was less. She said the year starts with Jan 1 no matter when your cycle ends. Any charges from Dec which appeared on my Jan bill didn't count. (Darn there went almost 2k in Holiday gifts!). So I think he'd be good with purchases up to Dec 31.
Eileen

Huh. Maybe it varies? :confused:

I specifically called to ask and they said that charges made in December that post in the January statement count towards the year that the January statement is in. Unless they changed the rules for this coming December.

If I have to charge 25K, then I would use my citi AA cards. With 10K purchase, I get 10K bonus. That's 50K miles good for a ticket to Japan by AA.

Is this some kind of special promotion or targeted offer? I'd keep my SPG Amex in my wallet for this deal.

Is this some kind of special promotion or targeted offer? I'd keep my SPG Amex in my wallet for this deal.

regular promotion. go to citicards.com

20K bonus for 750 purchase, and another 10K bonus if you spend 10K within the first year. That nets you 40K for 10K spending. Very good deal, isn't it?

If you own a house, you could charge your property taxes.

Can you do this without the gov charging you a service fee? What a great idea if it works!