Hi. My name is Rick, and I am a PointChaser. I’d probably be considered an “old time PointChaser”. I got my first travel rewards credit card in the last century (1989), a Northwest Airlines card.
With 73 counties visited, four around-the-world itineraries completed, a blog founded, written for five years and sold, I’ve had the opportunity to watch this hobby ebb and flow for thirty years now.
Hopefully, I can help the newcomers shorten the learning process, pass on some of my successes and mistakes for more experienced players. And maybe suggest a few ways to maximize your returns for all skill and experience levels. Let’s start at the beginning:
Who should be playing The Game?
For years, I thought only those with good credit and discipline could safely take advantage of the rewards offered. Those are still two important factors in determining your level of play. But the game has now taken on techniques where those without high credit scores can earn a few extra bucks as well (come back for the next post).
The ultimate player, with the most avenues open to them, is someone with a credit score over 700+, that pays off their existing credit card debt In Full every month and has a system or spreadsheet for keeping track of their hobby activities. Statistics tell us that represents less than 50% of the American adult market. Which half do you fall in? Knowing and admitting the truth will go a long way to your success.
Credit card sign-up bonuses
Credit card sign-up bonuses have consistently been the most lucrative method of accumulating frequent flyer miles and points since the game started. That is not going to change, as the average American applies for only one or two credit cards in their lifetime.
If a bank can entice you to be one of Their Clients, they will earn merchant fees on your every transaction for years to come. In doing so, they will more than recoup the value of the original sign-up bonus they give you. As hefty as it may seem. Here’s some math:
If a credit card sign-up bonus costs a bank $500 to entice you, and you spend just $10,000 per year on your credit card, they will earn somewhere between $250 and $350 per year in merchant fees collected from retailers that accept your credit card. It doesn’t take long for them to recoup their initial outlay.
When you add to that interest on your unpaid balances and an occasional late fee, you can see getting your sign-up for one of their cards is very profitable indeed.
How you can play The Game
We can short circuit that income stream for banks by applying for cards and meeting their minimum spend requirements to collect the sign-up bonus. Then put that card in the sock drawer and get another new card with another new sign-up bonus.
It won’t ruin your credit. My wife and I have applied for and received over 300 credit card sign-up bonuses. Our credit scores are still in the high 700’s. My personal credit report with Experian is 278 pages long.
It takes discipline to only take on what you can keep track of, how often you can meet a minimum spending requirement and pay off the balance In Full each and every month. I like to think of it as us leveling the playing field. If a bank wants our continued business, they should continue to give us valuable rewards, not just at sign up.
As you go along in this game, you’ll find some credit cards are good for long-term rewards and worth keeping. Others are one shot in the dark cards. Make sure you know the difference.
Next Up? A technique for those that use Debit cards
About Rick Ingersoll
Rick Ingersoll is a long term travel hacker, manufactured spender and all around frugal kinda guy 😉 In his past life, he owned a mortgage banking firm specializing in helping first-time homebuyers. He helped the local Veterans office with the Vet’s credit questions, taught “Credit and Collections” at his local community college. In his second career, he founded the Frugal Travel Guy blog in 2007. He sold the blog to Internet Brands in 2012.
Rick was also instrumental in starting the Chicago Seminars, which brings together experts in the frequent flyer community to address an annual crowd of more than 500 participants. At one of those seminars, he was featured in an ABC Nightline program that brought the idea of travel hacking to the masses. The segment was so popular it was rebroadcast two additional times.
Yawn
Good to hear from Rick!
I think so too!
He is the reason I am in this hobby, thank you.
Welcome, Rick! Looking forward to reading your posts (although I’ll not have much interest in the debit card post – I’ve never in my life used one!).
Then you missed out big! A few years ago you could earn a good chunk of Delta and Alaska miles buying mo’s directly with a debit card.
It’s great to see Rick as a contributor.
Glad to hear it C.J.! I learned a lot from him back in the day and I think he offers an interesting perspective as an old-timer.
What a great way to start the day, a post by Rick. How awesome to see you here and sharing your wisdom.
Great to hear from Rick again!
Right? So glad to have him onboard.
Great to see Rick again!
I agree! 🙂
Good to see Rick blogging again!
Welcome Rick!! Thank you for all your help through out the years!!!
+1
Thanks for all your support. Even if you don’t use a debit card, the next posts for credit cards as well. I just made an extra $20 five minutes ago!
You just bought out or taking over Ariana’s blog site?
He’s contributing. Though if he wants to buy me out with a few million miles, I would not be opposed to that. 🙂
“Credit card sign-up bonuses have consistently been the most lucrative method of accumulating frequent flyer miles and points since the game started”
Rubbish. A decent MSer will earn vastly more miles and points than those relying on card signup bonuses. The days are long gone for repeat signup bonuses thanks to 5/24 and lifetime requirements. But no surprise from the King of Card Shilling.
There are pros and cons to both. Card churning is easier than MS. Some churners will pick up 20 cards per year and pocket around a million miles. MS’ing a million miles takes more time, effort and involves more risk. Though you’re right RE the difficulty of regular card churning in light of stricter churning rules.
As a fellow MS’er I agree that you can earn lots by MS. But I like the hourly rate of applying for credit cards way better than stand in line at Walmart. You can’t make $600 per hour MS can you?? BTW, my wife and I have 14 new credit cards this year, so although tougher, churning is not over yet
Glad to see Rick on-board. He adds even more value to the site.
Glad to hear it!
I’m excited for the debit card article, this is a topic I’ve always wondered about, the possibilities etc.
+1
Stay tuned!
Wonderful to hear from Rick. He is always very understandable.
Agreed. 🙂
Rick,
Thank you for your write up. Do you have any suggestion for those of us starting but looking to buy a house sometime soon? I’ve been doing business cards to avoid having so many pulls on my personal but i always wonder when a bank do a review, do they do business cards too.
pa, I haven’t been active in the mortgage business for over 25 years BUT a good friend of mine and card churner just bought a house and they ask for an explanation on every personal card on her account. She did not have business cards. I would be prepared to tell them the truth that you apply for cards for the sign up bonuses, whichever type that show on your report. They will be most concerned that your balances are paid on time and in full. Congrats on the big step. BTW. She was approved by the way.
Good to see your post, Rick! Your blog was one of the ones that got me started in this hobby way back when.
Rick is the best.
+1
So glad to hear from you again Rick!. Remember meeting you on the Brooklyn Reality Tour.
“the average American applies for only one or two credit cards in their lifetime”
Really? Is there a source on that?
Gallup poll says 2.6 average cards held by Americans. It was a older bank study that suggested how long they hold a card by the average bank earnings from a new card acquirer due to the length of use. I’ll try to find it. IIRC a new college applicant will pay five figures in fees over the life of that relationship with just one card. I was dumbfounded by those numbers
Nice to see you here, Rick! I’ve learned a ton from you over the years. Do you plan on going back to the Chicago seminars? I’ve missed not seeing you there.
Yes, I’ll be there for tenth anniversary
Wonderful! I’m sure many of us will enjoy seeing you!!
Nice to see Rick back in the blogosphere. He was a big help to me when I first got started in the game. Welcome back Rick.
YAY!!!!! Rick is back!!!!!!!!!!! Best news of the day!!!!!!! My nephew visited for the 4th of July and he asked me for help on how to get started in this “game.” First thing I did was show him the ABC interview from years ago with Rick (on YouTube) and I told my nephew to browse online Rick’s posts, even if they were written ages ago because the basics are there. I cannot tell you how my gleaned info from Rick’s Frugal Travel Guy blog has enhanced my family’s life for many years. Welcome back, Rick! I’m just tickled pink!
Nice get AA!
You and Greg at FM were my main go-to’s for MS when I started in 2013.
Thank you very much for your valuable content.
~Cap
Sure thing! Thanks for following all these years.