CardIt
Sep 24, 2007 | 6:24 pm
#16
Join Date: Jan 2006
Location: ELP
Programs: AA EXP/LT PLAT, Marriott Titanium/LT PLAT
Posts: 4,140
Ummm, be careful with this. It may have a place under certain circumstances, but paying 2.49% plus $20 per transactions simply to earn miles is, well, idiotic. A $1,000 payment costs $45 in fees. There is no rewards card that can consistently return 4.5% and you'd need that to just break even for your fees! You're far better simply dropping $45 (or whatever the fee would be) in a savings account. At the end of the year, you can spend the cash on your "reward" travel.
Sorry...
Sorry...
By the way, we all know that "writetorich" hates TYP, is a firm believer is all things created by AMEX, and that if any program faces a devaluation -- that program SUCKS !!!
but we must hear it all the time
Sep 24, 2007 | 8:20 pm
#17
Join Date: Sep 2005
Location: Long Island
Programs: SkyMiles, Dividend Miles, True Blue, Membership Rewards
Posts: 126
What is also somewhat nice about this program is the possibility of the extra float depending on when the charge hits vs. when your statement cuts.
If you can get a credit card whose statement cuts on the 30th, and you mortgage is due on the 15th, you pay your mortgage on the 1st then you have all that extra time before your payment is due. If you switch cards every month you can in theory come out ahead.
-Dave
If you can get a credit card whose statement cuts on the 30th, and you mortgage is due on the 15th, you pay your mortgage on the 1st then you have all that extra time before your payment is due. If you switch cards every month you can in theory come out ahead.
-Dave
Sep 25, 2007 | 6:23 am
#18
Join Date: Aug 2004
Location: SDF
Posts: 3,302
What is also somewhat nice about this program is the possibility of the extra float depending on when the charge hits vs. when your statement cuts.
If you can get a credit card whose statement cuts on the 30th, and you mortgage is due on the 15th, you pay your mortgage on the 1st then you have all that extra time before your payment is due. If you switch cards every month you can in theory come out ahead.
-Dave
If you can get a credit card whose statement cuts on the 30th, and you mortgage is due on the 15th, you pay your mortgage on the 1st then you have all that extra time before your payment is due. If you switch cards every month you can in theory come out ahead.
-Dave
Sep 25, 2007 | 7:43 am
#19
Join Date: Sep 2005
Location: Long Island
Programs: SkyMiles, Dividend Miles, True Blue, Membership Rewards
Posts: 126
-Dave
Sep 25, 2007 | 8:29 am
#20
Original Poster
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA, IHG & Marriott Platinum; DL & HH Gold
Posts: 51,857
Sep 25, 2007 | 9:26 am
#22
Join Date: Jun 2004
Programs: BD, DL, UA, AA, Marriott, SPG
Posts: 1,141
Here is how:
1. Set up your credit card billing cycle to start a couple of days before your payment is due. This will give you a 45 day float (25 days for statement to end + 20 days before payment is due)
2. Pay the credit card using MBNA bill pay. If you set up billing cycle on your MBNA card to start a couple of days before payment is due on above credit card you will get another 45 days or so of float.
Sep 25, 2007 | 9:51 am
#23
Join Date: Aug 2004
Location: SDF
Posts: 3,302
Even if you get your "float" to 90 days, that means long run (after the first 90 days), you will just be on a three month lag so have three months of mortgage payments you could earn interest on. Depending on your mortgage amount and savings account rates, you're probably looking at a couple hundred bucks a year tops.
Sep 25, 2007 | 10:28 am
#24
Suspended
Join Date: Dec 2005
Location: HY
Programs: AA-EXP (3.3MM), AAirpass, SQ-PPS Solitaire, DL-PM (.777MM), SPG-Plat, HH-D
Posts: 2,307
Ummm, be careful with this. It may have a place under certain circumstances, but paying 2.49% plus $20 per transactions simply to earn miles is, well, idiotic. A $1,000 payment costs $45 in fees. There is no rewards card that can consistently return 4.5% and you'd need that to just break even for your fees! You're far better simply dropping $45 (or whatever the fee would be) in a savings account. At the end of the year, you can spend the cash on your "reward" travel.
Sorry...
Sorry...
Also this is not new at all, there is another out there and has been around for a couple of years that I know of.
Rich, Ive started to look at TYN more closely since discovering AMEX Plat and I can show you ways of redeeming Long-Haul J flights which are the most efficient use of miles/points, period. But now gotta run, ill resume later.
Sep 25, 2007 | 10:40 am
#25
Join Date: Jun 2004
Programs: BD, DL, UA, AA, Marriott, SPG
Posts: 1,141
Even if you get your "float" to 90 days, that means long run (after the first 90 days), you will just be on a three month lag so have three months of mortgage payments you could earn interest on. Depending on your mortgage amount and savings account rates, you're probably looking at a couple hundred bucks a year tops.
Sep 25, 2007 | 11:34 am
#27
Join Date: Sep 2007
Posts: 7
Jake,
I find your discussion to many questions honest and compelling to look at the service....
So , if i have to pay my monthly Chase car loan , do I have to advice them prior that i would pay it on CardIt or that step is not necessary...will be happy to consider mortgage payments down the road after the fee stumbling block gets eleminated.
Thanks.
I find your discussion to many questions honest and compelling to look at the service....
So , if i have to pay my monthly Chase car loan , do I have to advice them prior that i would pay it on CardIt or that step is not necessary...will be happy to consider mortgage payments down the road after the fee stumbling block gets eleminated.
Thanks.
An integral part of our service offering is *not* having to advise your lender, be it for your car or your mortgage payment. It is received as an electronic check on your behalf.
Sep 25, 2007 | 12:22 pm
#28
Join Date: Jan 2006
Location: ELP
Programs: AA EXP/LT PLAT, Marriott Titanium/LT PLAT
Posts: 4,140
Now, we are really starting to "nickel and dime"....theortically it is possible to earn some interest due to the lag...but here is something to consider:
1) Will the interest equal the fees or even 50% of fees associated with each and every single transaction?
NO !!!
2) Will this create more headaches for someone who is trying to make this work?
YES !!
Personally, not for me
If anyone wants to try it and run a 6 month figures including your time spend, I would love to look at thew figures over a few beers !!! My treat !!
1) Will the interest equal the fees or even 50% of fees associated with each and every single transaction?
NO !!!
2) Will this create more headaches for someone who is trying to make this work?
YES !!
Personally, not for me
If anyone wants to try it and run a 6 month figures including your time spend, I would love to look at thew figures over a few beers !!! My treat !!
Sep 25, 2007 | 1:08 pm
#29
Original Poster
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA, IHG & Marriott Platinum; DL & HH Gold
Posts: 51,857
Let's assume you are already charging every possible to dollar to your preferred cards. Along comes an offer like this...
Citi® Platinum Select® / AAdvantage® World MasterCard®
Earn up to 40,000 bonus miles. Earn 20,000 AAdvantage® bonus miles after you make $750 in purchases within 4 months of becoming a cardmember. Earn 10,000 AAdvantage® bonus miles after you make $10,000 in purchases during your FIRST year as a cardmember and 10,000 additional AAdvantage® bonus miles after you make 10,000 in purchases during your SECOND year as a cardmember. Plus, no annual fee for 12 months.
You could earn these bonuses by diverting dollars from other cards, or you could use dollars from your mortgage or income taxes that are currently paid by check.
Let's say you make four $2,500 payments in the first twelve months, and incur $329 in fees.
10,329 miles for spending $10,329
20,000 miles bonus ($750)
10,000 miles bonus ($10,000)
40,329 @ $0.00816 per mile
Citi® Platinum Select® / AAdvantage® World MasterCard®
Earn up to 40,000 bonus miles. Earn 20,000 AAdvantage® bonus miles after you make $750 in purchases within 4 months of becoming a cardmember. Earn 10,000 AAdvantage® bonus miles after you make $10,000 in purchases during your FIRST year as a cardmember and 10,000 additional AAdvantage® bonus miles after you make 10,000 in purchases during your SECOND year as a cardmember. Plus, no annual fee for 12 months.
You could earn these bonuses by diverting dollars from other cards, or you could use dollars from your mortgage or income taxes that are currently paid by check.
Let's say you make four $2,500 payments in the first twelve months, and incur $329 in fees.
10,329 miles for spending $10,329
20,000 miles bonus ($750)
10,000 miles bonus ($10,000)
40,329 @ $0.00816 per mile
Sep 25, 2007 | 1:17 pm
#30
Join Date: Sep 2005
Location: Long Island
Programs: SkyMiles, Dividend Miles, True Blue, Membership Rewards
Posts: 126
One other thing that I just thought of:
[Dishonest mode on]
If you are a business owner, and put through a large amount of charges every month, you could easily put another 3 or 4 thousand on the card and "forget" to list is as income at then end of the year. One of my customers has on average $175,000 to $200,000 on his business card every month (him and 10 or so users) it's his business so it would be a simple matter for him to take almost another $60,000 out of the business a year and not pay taxes on it.
[Dishonest mode off]
The above would have very limited application in the world but I could see it being useful for some people.
-Dave
[Dishonest mode on]
If you are a business owner, and put through a large amount of charges every month, you could easily put another 3 or 4 thousand on the card and "forget" to list is as income at then end of the year. One of my customers has on average $175,000 to $200,000 on his business card every month (him and 10 or so users) it's his business so it would be a simple matter for him to take almost another $60,000 out of the business a year and not pay taxes on it.
[Dishonest mode off]
The above would have very limited application in the world but I could see it being useful for some people.
-Dave