• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • 100 Words

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

When Credit Card Companies Fight, Travelers Should Rejoice

By Craig Ford

get free travel with credit cardsWe all know competition is good. It’s good for we, the people. For instance, I tend to closely watch offers in an effort to get free travel with credit cards. And I’ve noticed there have been some outstanding credit card sign up bonuses over the years.

Consider some of the following offers from the past:

  1. American Airlines had a 75,000 miles sign up bonus offer. That’s enough miles for three domestic flights in the USA.
  2. British Airways had a 100,000 miles sign up bonus offer. That’s enough miles for four domestic flights in the USA.
  3. Capital One had a sign up bonus miles match of up to 100,000 points. Those 100,000 points translate into $1000 worth of travel.
  4. American Express has several targeted offers where they offered 75,000 – 100,000 American Express Rewards for signing up. That’s enough miles for several domestic tickets.

On the other hand, I remember a time when people were getting excited about a credit card that offered 30,000 bonus miles.

A Reason to Celebrate

That means that anyone who is willing to use credit card sign up bonuses to get free travel has a lot of reasons to celebrate.

At the turn of the century, a really, really good offer would get you just enough miles for a free flight. But times have changed. Today, the possibilities are outrageous. Getting up to four domestic tickets in exchange for a credit card application is crazy lucrative for travelers.

We can only hope that companies continue to try and one up each other.

Why do credit card companies offer these rewards?

Look; the people who run these promotions are smart. They wouldn’t be doing it if they were losing money.

In fact, they do it because what they get in return is normally more than what they are offering.

Here are some of the things the credit card company assumes:

  1. Many people won’t use their miles. I know a lot of people who have accumulated miles and then go to make a booking and get really frustrated. As a result, they vow to quit collecting frequent flier miles. Of course, this is unfortunate because the miles could be valuable if the person were willing to educate him or herself on the best ways to get reward flights.
  2. Some people will likely get the card and keep it, or forget to cancel it. This means they’ll collect annual fees even after the first year. Now the promotion starts to generate real profit.
  3. People will use the credit card. Duh. When you use a credit card, the credit card company gets paid. The vendor will pay a fee for the convenience of accepting the cards, and the credit card company is the one that gets paid.
  4. Some people won’t pay their bills. When credit card companies can charge $39 for a late payment and have a 25% interest rate, it’s easy for them to make some serious cash.

So, if that’s how they make money, you’ll win if you outsmart the credit card companies. Pay your card on time. Pay your balance in full each month. Cancel the card after a year of usage to avoid annual fees. And take the time to use your air miles.

In the end, you win when credit card companies fight.

If one had decided to sign up for credit cards to get the travel bonus at the start of the year, they could have easily have earned over $4500 worth of free travel this year with five applications.

For some people, this little game is not worth the time, effort, or hassle. However, if you want to learn how to travel cheaply, then this is a great time for taking advantage of credit card sign up bonuses. It’s also a great way to start building your account balances for a free flight.

Photo Credit: Claudio Gennari

December 28, 2022

Comments

  1. 1

    KC says

    Competition is great. Gotta love it when the consumer gets a better deal. Bring on the fights!

Trackbacks

  1. How to Ensure You’re Getting the Most from Your Wallet - Len Penzo dot Com says:
    January 27, 2018 at 4:45 pm

    […] if you can get a better deal. There are a lot of cards that offer great cash-back rewards, or even travel rewards, and have no annual fees. If your current card isn’t giving you anything more than points, or […]

The Question of the Week:

If the government eliminates cash, to what degree will that impact your freedom?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: Par for the Course
  • The Continuing Chronicles of Elaine, Part 7
  • Three Reasons Why Credit Unions Are a Great Choice for a Car Loan
  • Bad Habits That Make You a Target of Credit Card Fraud
  • Lessons In Tax Law: Why You Should Never Try To Bribe The IRS
  • Why Paying Off the Mortgage Early May Be a Big Mistake
  • Black Coffee: Welcome to the Fun House
  • A Georgia Teacher Shows Why It Always Pays to Read the Fine Print
  • Why Extended Warranties Sometimes Do Make Sense
  • 10 Ways to Get the Most from Your Next Business Conference

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. Scientists Say This Clever Trick Can Help You Break Your Overspending Habit
  2. 2. 4 Online Shopping Mistakes You’re Making and How to Avoid Them
  3. 3. When Is the Right Time to Use Your Wealth Insurance (Gold & Silver)?
  4. 4. Dear Friend: Here Are 41 Reasons Why I’m Not Lending You the Money
  5. 5. Home Repair Scams: Here Are the 9 Biggest
  6. 6. Trying to Save Money on Gas? Here’s Proof That Driving Out of Your Way Rarely Helps
  7. 7. How I Fought My Parking Ticket and Beat City Hall
  8. 8. Are You Frugal or Cheap? Here’s How to Know the Difference
  9. 9. Historical Gold & Silver Benchmarks for Wages and Commodities
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2023 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2023