Go Back  FlyerTalk Forums > Miles&Points > Information Desk
Reload this Page >

How can a person get points paying mortgage

How can a person get points paying mortgage

Old Mar 26, 19, 10:59 am
  #1  
Original Poster
 
Join Date: May 2011
Location: orangeburg sc
Posts: 24
Question How can a person get points paying mortgage

My mortgage company does not accept a credit cards how can someone attain points. That's our my biggest bill.
zbest1966 is offline  
Old Mar 26, 19, 11:09 am
  #2  
 
Join Date: Dec 2009
Location: New York, NY
Programs: UA, Marriott Gold, Hilton Gold, Hyatt (Lifetime Diamond downgraded to Explorist)
Posts: 6,545
LMGTFY
Yoshi212 is offline  
Old Mar 26, 19, 12:52 pm
  #3  
Original Poster
 
Join Date: May 2011
Location: orangeburg sc
Posts: 24
I am new to this how can use the Hilton credit card for my mortgage
zbest1966 is offline  
Old Mar 26, 19, 12:54 pm
  #4  
FlyerTalk Evangelist
 
Join Date: May 1998
Location: Massachusetts, USA; AA Plat (2.90MM), DL GM and Flying Colonel (1.04MM); Bonvoy Gold
Posts: 21,992
There are services, such as those that the link in post #2 will eventually lead to, that will let you do this - but their fees are almost always more than the miles you will earn are worth. (They stay in business by charging you more than the credit card company charges them, and credit card companies stay in business by charging merchants more than it costs them to buy miles from the airlines/hotel chains.) If you need a few miles/points to top up an account for an award, you'll probably do better buying what you need from the airline/hotel chain directly.
Yoshi212 and zbest1966 like this.
Efrem is offline  
Old Mar 26, 19, 1:39 pm
  #5  
Original Poster
 
Join Date: May 2011
Location: orangeburg sc
Posts: 24
It would be best to just buy points or miles rather than trying to pay my mortgages to get points right?
zbest1966 is offline  
Old Mar 26, 19, 3:08 pm
  #6  
 
Join Date: Dec 2009
Location: New York, NY
Programs: UA, Marriott Gold, Hilton Gold, Hyatt (Lifetime Diamond downgraded to Explorist)
Posts: 6,545
Essentially the additional cost of paying via credit card (mortgage+2.5-3%) yields a cost that is higher than the potential points earned when used. Using it on occasion such as to meet minimum spending on a card to get a signup bonus or to top off a points balance to reach a redemption goal can be worth it. I recently used my CIU to pay my rent to meet the minimum spending absorbing the cost of doing so (2.4% via my building's management company) as the signup bonus is worth many times the fee.

Hotels, and airlines, have promotional sales of bulk points which may be a better value than the amount you'd pay in fees to earn less miles.
Yoshi212 is offline  
Old Mar 27, 19, 5:43 pm
  #7  
 
Join Date: Oct 2014
Posts: 4,356
I disagree with the conventional wisdom here.

The place where the logic used here breaks down is that the banks buy miles and points for much, much less than you can buy them for. An airline or hotel chain might charge you 2-3c per point or mile. The bank is probably paying somewhere around 1c, maybe less. Inside that very large gap, there is room for you to pay a fee, allow the payment processor to make a profit, and still get the miles/points cheaper than buying them.

I'm currently paying my rent with Plastiq (2.5% fee). I think it's easy to get 2.5% worth of value back from the right cards (the value is often more than just points or miles! Some help to achieve status, as well), even outside a signup bonus.

My situation is, I'm using the World of Hyatt card. Hyatt miles can be bought for 1.7c per point when they are on sale, and there is a cap on how many you can buy each year (I max out this deal, so I am unable to buy more points). I generally redeem Hyatt pts at around 2.5-3.5c per pt, so buying them at 1.7c is a great deal. I consider that "true" value too, because I redeem them on stays that I would make anyway, when the cash cost is high compared to the cost in points. (Unlike, say, an international F redemption on a top airline... the ticket might sell for $10-15k, but if I was paying cash I'd just fly J, because F is not actually worth that much to me)

By putting the rent on the card, I immediately get 1 pt per dollar. This, alone, would be more or less break-even for me. However, in addition, for every $5000 put on the card, I get credit for 2 qualifying nights at Hyatt. The first 60 qualifying nights help me maintain globalist status, and at 70, 80, 90, and 100 nights I get a choice of a 7-night suite upgrade or 10,000 pts. If I take the pts, that's an effective rate of 1.4pts per dollar, which is a good deal in return for a 2.5% fee (a little under 1.8c per pt). If I feel that the suite upgrades have more value to me than the points, I can take those and get an even better return. The nights before that are worth even more (I get a lot of value out of being globalist). I also get a free night for putting $15k in spend on the card in a year (although, I would hit that threshold anyway, so I don't count that in my calculation)

Similarly, putting $25k spend on an airline card might get you a PQD waiver, in addition to the miles earned.

The TL;DR is that the value of points, miles, and status is highly subjective. It's not correct to say that paying rent / mortgage / bills on a CC for a fee is right or wrong for everyone. For me, it makes a lot of sense. For the OP, it might or it might not. The question is, what are they getting for the spend, how do they value it, and how does that value compare to the fees paid?
VegasGambler is offline  
Old Mar 27, 19, 6:06 pm
  #8  
FlyerTalk Evangelist
 
Join Date: Jan 2005
Location: home = LAX
Posts: 23,977
Originally Posted by zbest1966 View Post
I am new to this how can use the Hilton credit card for my mortgage
Hilton points are not worth enough to offset the 2.5% or higher fee you have to pay.

If you use airline miles only for super-expensive fares (like longhaul international business and first class), and you wouldn't fly economy (coach) if that wasn't available, then maybe (some will disagree) you could value miles at enough cents per mile that earning one mile per dollar spent would offset a 2.5% fee.

But Hilton points are generally valued so lowly, as are miles used for comparatively cheap domestic (and near international) fares, and miles used for coach fares to almost anywhere, that you're unlikely to get net value out of using a service that charges 2.5% when earning 1 mile per dollar (which is the most you're likely to get from using an airline miles card for such a service).

And so if you don't mind flying everywhere in coach, you're not likely to get enough value out of miles to offset a 2.5% fee.

And even if you wouldn't fly at all if you couldn't get business class seats with airline miles, you have to be skilled at getting award flights too (it's not always that easy), just to get such good theoretical value out of airline miles. "Anytime" awards which get you any seat on the plane at any time are typically not high value, only "saver" awards (which are only fleetingly available) can be that high value.
Yoshi212 likes this.
sdsearch is offline  

Thread Tools
Search this Thread