Local Bank CC offer, $150 bonus after purchase, take it?
Sep 13, 2014, 6:55 pm
#17
Original Poster
Join Date: Apr 2013
Location: Michigan
Programs: AA, UA, DL, UR, IHG platnium, AirAsia
Posts: 323
It's customary here to not include the points from actual spend in the calculation, because there's often many offers for large bonuses that include differing (relatively) small spend amounts.
However, if you go to that step, you should also figure your opportunity cost of that spend.
Hypothetical situation - you have a card such as JCB which pays 3% cash back. Barclays pays 2.2%.
When you factor in the $3000 in spend, your actual benefit is $444 + ($67-$90) = $421.
You can also use a similar model if you have to manufacture the spend, to capture the cost of that additional spend.
However, if you go to that step, you should also figure your opportunity cost of that spend.
Hypothetical situation - you have a card such as JCB which pays 3% cash back. Barclays pays 2.2%.
When you factor in the $3000 in spend, your actual benefit is $444 + ($67-$90) = $421.
You can also use a similar model if you have to manufacture the spend, to capture the cost of that additional spend.
So, $444 + ($67-$45) = $466.00. Still pretty darn good.