Traveling with Credit Cards - Are you doing it right?
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- Опубліковано 29 чер 2024
- A lot of us like to use our credit cards to help us travel. But here's another way to do this that you may not have thought of? Can I use Cash Back Credti cards to Travel First Class? Are Travel Credit cards always more valuable? Well, see for yourself with 4 example that may indicate the no annual fee cash back card is a great option! This video was inspired in part by the following video by “All The Hacks” please check it out: • Cash Back vs. Points: ...
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the last comment about spending money on points and sometimes using it to hit a minimum spend just blew my mind. something so obvious but something I've never thought of. I've got lots of ideas churning in my head now.
Mission accomplished. Glad I got you inspired!!
Great video! I've been trying to explain to people that if you're not hitting 2cpp with your transferable point redemption, you will more than likely be better off with a cash back setup. Especially for domestic economy travel, but since people are so focused on "team travel," they lose sight of the other good options that are available that will more than likely give them a higher return on spend (excluding welcome offers).
Exactly!!!
Fax. But hotels are little more tricky at .2+ cpp than flights.
except I don’t get most of my value from the points multipliers and the “travel” cards have much better SUBs which is where I get all of my value
Very eye-opening! I always watch to the end.
I always appreciate it!!!!
I enjoy how you think outside the box unlike the same old thing.
Thank you for the kind words.
I like your thinking Luke, thanks for the video
Thank you sir. Just trying to show folks a different technique.
I always watch to the end. Great video and I like the new frames.
Thank you sir!!
Like the thought experiment Luke. Thanks for the video. Going to think about this one more.
It’s funny how no one would ever consider buying points for $800 but they’ll spend those points like crazy even if it was $2k worth of points!!
Always learning in this space.
Thanks for watching, Stacy!!
Underrated techniques!! Tell em uncle Luke!
Trust me Sendo, no one will watch this video. They all want the shiny new metal card!!!
When Chad did a Chad's Prespective, Last week on this topic.He said it wouldn't be a popular opinion
@@SledgeIncTeam nope because folks don’t understand that those points are actually money. They’ll spend tons of points are awful redemptions but they won’t part with cash because they think the points were free.
Great information + video!
Thanks for watching Jimmy!!
One of your best videos yet.
Thanks for the kind words.
Thanks for discussing an original approach to travel rewards that I’ve not seen/heard any UA-cam channel discuss. I’ve often wondered if we all could obtain more or equal value forgoing the common credit card rewards route. It seems we can. Taking this approach doesn’t involve all the other benefits some rewards credit cards provide-travel protections, lounge network, etc-but if people don’t care about those things, this provides a ton of value. Plus, as you state, using this method to maximize value and travel internationally in Business/First class already provides lounge access. My only small concern is the expiration of points purchased, but that probably depends on the airline or hotel from where you purchase the points. Great job.
Super insightful video Luke, there'a absolutely good value in strategically purchasing points, especially when one's exhausted most SUBs or just can't get US credit cards. Like you, I've found good value in purchasing Hilton points when it's been on sale.
Yes sir!! I always buy the HH Points
i like the ebbs and flows :) different times different “teams”
thanks for all the advice over the years
Thanks for watching!!
The content with credit card videos these days is so much better than it used to be. Keep it real, homie!
Thanks for watching!!
Waooooo ! Excellent video!! You talk something that everybody said!!! Thanks
Thank you. There a lot of ways to draw value from credit cards and cash back cards never quite get their due
Nice!
Very thought provoking video. I can definitely see where in certain scenarios using cash back to buy points could be more beneficial than using a travel card and earning/transferring points. This video has forced me to consider cash back in a different light. Well done sir
Thanks for watching!!
I did something similar around the holidays. Made more sense to buy points. Thanks.
@@marilyncs7840 nice work!
I like to purchase Hilton points with a new credit card where I am meeting my minimum spend requirement to earn a sign up bonus. This way I am paying even less that .5 a Hilton point.
Yes sir. Always a great idea.
Thank you for the video. I will have to crush the numbers for my situation
Yes! Always make sure the numbers work for you!!
I’ve done over 2 million points and I’ve never purchased, I’m excited to learn something new today!
Nice!!
I did this with my IHG card. Once I hit the bonus, I had well over 454,000 points. With the 4th night free perk with of this card, I could have stayed 12 nights at an Intercontinental for $3000 in spending. That’s $250 a night!!!!
@@adrianarceo2809 hopefully that’s cheaper than the original cash price!!
At the time I was booking the stay in Los Angeles the rooms were going for about $800 a night. This price included taxes and fees.
@@adrianarceo2809 yeah that’s a nice move, man!!
This is a great perspective that I never really thought about before. Definitely worth utilizing this trick to acquire more points.
Thanks for watching!!
That's pretty cool! I've almost always written off buying points because the examples I've seen are all pretty bad deals (like buying a point for 1.2 pennies for it to only be worth 1 penny, or generally only 80% of the value). But, if they're on sale, I can see this being awesome!
There are a lot of possibilities out there that most UA-camrs won’t talk about. Because, well, because they don’t know much about traveling on points and miles haha.
This video was kinda mind blowing. I never considered using cash back cards for traveling. I'm definitely going to rethink my setup and strategy.
Thanks for watching !!
Buying points is definitely something to learn more about especially if it's to hit a minimum spend. It seems like there's some solid value out there and I haven't seen a lot of information about it on UA-cam
Well Jacob, that’s because the information on UA-cam is mostly basic. “This card earns 3x on dining…….”
I really like this and agree with what you say, utilizing this would enables one of cashbacks superpowers, pooling cashback into an compounding interest bearing account. They can hedge against devaluations.
It is also why anniversary points is one of my favorite perks to look for when using cashback from one card to pay for another cards annual fee
Nothing wrong with a little compounding!!
I’ve leaned from both you and Cesar that there is power in $0 AF cards. If a no AF card can out earn a co-branded hotel or airline card that has an annual fee, generally that co-branded card isn’t worth it.
Great stuff man, buying points for minimum spend is crazy! I buy Hyatt points to top-off for stays, but this may have opened a new strategy I need to think about!
Love your content.
- Ivan
Thank you sir!
Thanks for a thoughtful, out-of-the-box video that is not another Sapphire video!
Hahah. Stay tuned for my new new sapphire review!!!!
No, Luke, don't give in to the dark side!
@@cws-07 have you see the new sapphire bonuses??
@@LukesPointsandMiles I have and the bonuses are great, but I would just rather not see a video about them from each UA-camr that I follow. I would much rather watch a video such as the one I am commenting on now. Keep up the great work!
Great video Luke. I buy Hilton points regardless whether I'm working on SUB or for a specific redemption. IMHO, most folks when it comes to travel redemptions are not doing thus exercise of using a no AF cash back card to then buy points. People want simplicity and not going to do the extra work for a marginal savings.
You are probably right
How marginal is the difference over 10 years? Thousands of dollars? How marginal is exactly what we do? We get a tiny percentage back in the first place?
This is why US Bank Altitude Reserve is my favorite card, whether you like it or not we all used money to buy points/miles anyway. Maybe in form of spending or directly buying pts.
What I meant was to maximize your earnings
Yeah I still think the altitude reserve is an inferior option for anything it does but it’s a nice little card for folks that want to believe.
I've never thought of this. I am new to the game, but have around 1k sitting on cash back cards. Neat idea for sure.
I’m primarily a travel card guy but I love the techniques with 5% cash back cards!!
Brother Luke out here preachin'!!!! People see someone do something on youtube and take it as gospel! My Hilton stays near the venue on Friday or Saturday night ALWAYS get about 1 to 1.3 CPP. I buy the max every year!!! Buy em to earn a SUB, now you are doing it right!!!! Thanks for rhe video!!! May have to change you to PROFESSOR Luke!!!
Haha I’m no professor. Just a regular dude with basic math skills. Haha a
Great points here man. Also, if you buy the points with your cash back card, you’re still getting a little back on that purchase as well lol with the right card of course.
Absolutely!!
This is why I stopped spending on the IHG card, much better deal to just buy the points.
Absolutely but I spend at ihg properties with it
@@LukesPointsandMiles Me too. I also use it for misc travel since my other travel card only covers hotels, air, and cruises.
Great thought provoking video. Uncle Luke, besides Hilton and IHG, do you buy other points/miles prospectively without a specific trip in mind? Some of the programs have expiration dates if no activity and you could end up with stranded points/miles in a program without a good application for them.
I would not buy any points that I thought there was a chance they would expire. I’d be conservative
We need to sit down one day so we can chat, and I can learn how to buy points! I've only done it for top-offs, but I'm starting to learn that there are other great use cases - especially when there are 100% bonuses!
For sure. For some reason, folks think points are free and they have a tough time seeing them as currency. So they’ll spend points and not think about it but they don’t want to spend cash even though the points have a cash value and/or opportunity cost. Plus it thought to say “spend $800 and get tons of free travel”. Haha.
100% agree with you Luke👍👍👍 I just recently purchased Aeroplan points with 85% promotion, redeemed 87.5K to fly 18 hours on Singapore airline business from EWR to DPS in 2025, I'm so excited 🙏♥️
Oh nice move!!!!!
@LukesPointsandMiles I will be thinking of Carlos on that Singapore business flight ❤😊
@@crystalgiannone2683 ahaha. He loved it!!!
I sometimes use my surpass card for dining to built up my Hilton pts
Right on!
@@LukesPointsandMiles can’t beat free stays
But Luke, I want my hotel elite status and free nights award 😂
Can’t argue that. Those things definitely have value.
@@LukesPointsandMiles unless its the Hyatt card ;)
@@dylanschang6386 ha!!!
🙌🏼
Thanks for watching!
Wow. Thanks for the info. I’m lost but will have to look into this further. I like these little travel treasures. I wonder if these companies accept visa gift cards as payment. That could help one strategy I’m thinking of.
I would think so but for the deepest discount you need to buy a large amount of points and I’m not sure if they would let you pay with multiples.
Good video, never really looked into the value of points on sale. I don't have to travel business class and are fine with economy. That said I'm going international this summer for 3.3 cpp in economy. I would rather use less points and go on more trips.
3.3 cpp is not bad at all. Nice work
This is a useful video. I have to downgrade a Sapphire card in about 2 months and perhaps this will be the use for the Freedom 5x categories when I no longer have an AF card with Chase.
Not a bad use for them
This strategy makes me wonder whether or how the US Bank Altitude Reserve Real Time Rewards can be more useful when purchasing points toward a specific award redemption.
Not sure if points will code as a travel purchase
Buying pts typically don’t code as travel. But if I know of brand or site than does…that’s gold. And pls share. 🙏😅
If anything. Because im eying USBAR next, A strategy such as what Luke presented (similar to mine) make me 2nd guess USBAR value as team pts AND cash/hybrid (kinda my thing). I already had questions about it. Hmm
I Rock a Venture X catch all, a Costco 4% Gas card, AND 4 X BOA 5.25% custom cash back cards. You better believe they're getting smoked...
Haha!
Uncle Luke in here doing simple math 🧮 💳
Folks don’t want to follow the math. They want to follow their feelings. Haha
1 - Thank you for showing that this exists and transferable points aren’t absolutely the best.
2 - Thank for ruining this for those of us that did know about these angles bud 😂
No worries!!😉
What is your view on utilizing cards for cash back and then investing them for long term. A simple $150 a month over 25 years will turn into $100,000+
I’m think it’s great but most folks are already investing
The minimum spend is definitely an eye opener. But how are you getting 5% cash back on these cards, these are not category spend, so its usually 1% back.
Obviously not all sold will be 5% but there are a lot of cards with a lot of categories that give 5%. I didn’t mean to say that there are cards that earn5% on everything but there could be a hack for that…..
This might be a dumb question but in your opinion, what’s worse: making a bad redemption (like transferring Amex to Hilton) or not being able to redeem at all? I feel like airlines are getting more restrictive and solid CPP redemptions harder.
No such thing as a bad redemption. As long as you’re not getting the terrible value every time
I am TEAM SUB
Subs will go away after 40+ cards.
Wouldn’t 5x on citi custom cash in citi points better than using that cash to buy other points that are more than 1 cent per point?
Also would purchasing points count towards spend requirement to signup bonus as you mentioned, since that’s “cash-like” txn?
Purchasing points isn’t cash like it a cash equivalent and yes - Citi Custom Cash might not have the best example of a 5% cash back card since some folks can transfer out to partners
Great point UNC.
I have a quick question. Is there any way to prevent American airlines points from expiring? My points are set to expire on the 8th but my flight isn't until the 16th of May. I am going to message them before the date if there's no other way around.
Any activity restarts the clock.
@@LukesPointsandMiles will message them. Should have been restarted. Thank you.
How about that Anthony Smith win. I knew he was going to fraud check that Brazilian. Big weekend on the sports book
Not much of a fan of smith. Hes a less than entertaining journeyman.
The “.05 cents” at 4:12 is a little confusing. Technically, would it not be .5 cents, i.e., half of one cent?
Yeah it’s a typo. Sorry. It should’ve half a cent
wait can you purchase miles using a credit card? and that counts toward minimum spend on a SUB? thats too easy...
Yes yes and yes. 👏
Luke what spending category will be the 5% related to the Custom Cash while buying points?
I should’ve been more clear. I don’t mean that folks are going to want 5% cash back while buying points. I meant that earning cashback at 5% or everyday categories. Taking that cash back and purchasing points.
Understood. I rewatch your video three times. It was my mistake.
Purchase max Hilton points, then would that require a Hilton card for max redemption?
No. Redeeming them is the same with or without a Hilton card
👍🏼👍🏼
Thanks for watching !!
I may have missed this in the video and this may be a simple question (I’m new to this game), but do buying points qualify for points multipliers? Like does it qualify as a travel purchase so cards that get additional points on travel purchases double dip in a way?
Points will generally code as “other”
@@LukesPointsandMiles catch all card it is. Thank you!
I just thought about this, when buying points how does it code a travel purchase? If so would it be eligible for the higher travel multiplyer also I know Chase for example gives credits for some purchases like 10% back on IHG or Choice. So i wonder if it could be stacked?
Lots of possibilities
At least with British Airways, buying Avios does not code as travel. That’d be too good to be true. I think I read somewhere that Air France miles are sold via a third party, too.
@@bgurley412 I don’t know of any points system that codes as travel.
The concept of buying miles at discounted rate for "OUTSIZED VALUE" has become well established in points and miles communities.. Picking a couple cards that have poorer earning multipliers in comparison to pure cashback earners (when outright purchasing points) is just cherry-picking.. The simple fact is the hotel/airline cards you're featuring are never going to be competitive for everyday purchases when compared to pure cashback, which is primarily for those that do NOT travel OR the uninformed. I would share the way to get 5x or 6x multipliers on daily spend, but if I did it would get nerfed...
Jesse, I honestly have no idea how to respond to this comment. But thanks for watching.
First
🥇
Where is CJ?
He’s working
He’s lurking?
Does the Redstone will affect 5/24?
Of course.
@@LukesPointsandMiles Damn. Thank you Luke.
Perhaps I have my math wrong but I think the screen graphic @5:54 should read .005 for 'half a penny'
My mistake. Typo
@@LukesPointsandMiles All good, brother. Just means I was paying attention haha