As we approach the end of 2023, it’s time to reflect on the past year and summarize my activities. In 2023, I opened a few new credit cards to enhance the return on my funds and prepare for upcoming travels at the end of this year and into the next. Here’s a list of credit cards I opened:
- Capital One Venture Card
- American Express Gold Card
- Citi American Airline Platinum Select Card
- Chase Southwest Rapid Reward Premier Business Card
- Chase Business Preferred Card
The first personal card I applied this year was the Citi American Airline Platinum Select card. I actually never planned to apply for this card but I had a good amount of AA miles that had expired around mid-summer and to re-activate those miles I was offered the option of applying for this card with a 60,000 bonus miles and no annual fee for the first year. The card offered a 60,000 bonus miles and no annual fee for the first year, with the condition of spending $3,000 in the first 3 months. I found it worthwhile, especially considering the incentive to reactivate my expired miles. If not for that, I might have waited for better offers.
Shortly after completing the spending requirement for the American Airline card, I applied for the Capital One Venture Card. This card offers 75,000 points after spending $4,000 in three months, with a $95 annual fee. Initially, I thought I could redeem these points for cash at 1 cent each, but after meeting the spending requirement, I discovered that cash redemption values each point at only 0.5 cents. This is half of what Chase reward points are worth. However, by booking travel through the Capital One travel portal, I could increase the value to 1 cent per point. Further value could be achieved by transferring points to airlines, but this requires detailed planning. For me, the value of these points falls between 0.5 and 1 cent.
The third personal card I opened was the American Express Gold Card. It offers a bonus of 90,000 points after spending $6,000 in the first 6 months. While the publicly available offer is 60,000 bonus points, I received a targeted offer for 90,000 points. Even at the lower end of the value spectrum (1 to 2 cents per point), the 90,000 points are worth about $900. However, this card comes with a $250 annual fee requirement. I’m still working towards meeting the spending requirement and anticipate completing it sometime next year.
I also applied for two business cards this year for my real estate business, which involves traveling to different cities and markets to find deals. I have a particular fondness for Southwest Airlines and owned the personal version of their credit card in the past. When the promotional bonus offer of 120,000 miles became available this year, I decided to apply. The catch for this card is a $15,000 spending requirement in 9 months to receive the full bonus (split into $6,000 in the first 3 months for 60,000 points and $9,000 in the following 6 months for another 60,000 points), along with a $99 annual fee. The Southwest airline’s companion pass is a valuable perk, allowing someone to fly with you for free. I’ve had the companion pass several times over the past years, and it’s been a great benefit.
The second business credit card I applied for this year was the Chase Business Preferred Card. It offers 100,000 points after spending $8,000 in three months, with a $95 annual fee. Overall, Chase is my favorite credit card issuer due to the flexibility of its Chase Ultimate Reward points and the consistency of its value. I’ve had many of its credit card products before, earning millions of points. While I used to frequently fly with United Airlines and held their co-branded credit card, my recent shift to other airlines has made the United miles transfer less critical. Nevertheless, the ability to convert Chase points to cash at 1 cent per point remains reassuring. Additionally, Chase has a series of co-branded credit cards with Southwest, complemented by a good point transfer program, which is valuable to me.
In total, with the credit cards I applied for this year, I will receive a total of 445,000 various bonus points, with a total spending requirement of $36,000. Adding the reward received from the spending requirement of $40,000 (as Capital One gives 2 points per dollar spent), the total points after completing the spending requirement is 485,000. Valuing these points conservatively at 1 cent per point, they would be worth $4,850. Considering the annual fees of these cards totaling $539, I should net about $4,311. I integrate credit card applications with both my personal and business spending, making it manageable for me to meet the spending requirement. Therefore, having the credit card points and bonuses is a reward for my research and planning, and I find enjoyment in this process. However, I would caution against applying for credit cards and making unnecessary purchases solely to meet spending requirements. If having more credit cards and higher credit limits makes you spend more on things you don’t need, potentially weakening your financial strength or leading you into debt, then it’s not worth it.