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The 4 Credit Cards I Use for Increased Spending
There are a lot of people out there who use increased spend to get millions of miles and points. Some people out there even do it as a full time job. A 2% earning card is their best friend. Using portals and websites to purchase gift cards online at close to no cost can rack a lot of dollars and points. I am more of a niche increased spender.
I tend to do my increased spending to get sign up bonuses or spending bonuses. But, there are a few cards that I use to get maximum profit year round. I use them when the timing is right and I shoot to earn at least 3% in profit.
The Credit Cards that Bring the Most Profit
Here are the list of cards I use to get out sized returns and the best place to use them.
1. Ink Plus/Cash
The Chase Ink Plus/Cash cards earn 5x Ultimate Rewards points per dollar at office stores. And, Office Stores sell Visa gift cards which are the all important tool.
They also have sales on 3rd party gift cards from time to time which can be profitable as well.
Where I try to focus is when these Visa gift cards go on sale. Particularly when they go on sale with an instant discount! A combination of these two sales are usually happening on a monthly basis. The instant discount sales are preferred though since you don’t need to send in rebates, which means limitations can not be enforced.
The last instant discount offered gave a $10 instant discount. This brought my out of pocket cost for 2 – $200 Visa gift cards to $3.90. For this purchase you would earn 2,020 points worth $20.20. When you add in the liquidation fee of $0.70 (I never split more than twice a Walmart – personal decision) the total cost is $4.60. This purchase would bring me a profit of $15.60 and a rate of return of 3.9% (5.85% if used for travel).
CLICK HERE to get more details and learn how to apply for this business card and other business credit cards!
2. American Express Blue Cash Preferred
The Amex BCP earns an amazing 6% cash back at grocery stores. Unfortunately it is capped at $6,000 per cardmember year. Grocery stores, like Kroger, sell $500 variable load Visa gift cards with a fee of $5.95.
Each gift card costs me $5.95 and has a cost to liquidate of $0.35 per card. For each purchase I earn $30.36. This gives me a profit of $24.06 per card, a rate of return of 4.8%.
3. Chase Freedom
The Chase Freedom is in most people’s wallet. It is an amazing card that fills in the gaps and covers areas the Ink Plus/Cash cards don’t. It has revolving categories each quarter that allow you to earn 5 Ultimate Rewards points per dollar on up to $1500 in spend per quarter.
Usually 2 out of the 4 (sometimes 3 out of 4) quarterly categories are easy to make a profit on. If we look at the Freedom calendar for this year it looks a little tougher than normal. Usually a grocery or pharmacy quarter is mixed in there. The best quarters are the 1st and 4th. Visa gift cards are easily accessible at stores that accept mobile wallets, and many Best Buy stores also sell Visa gift cards.
When dealing with mobile payments you are most likely able to find a store that sells $500 variable load Visa gift cards for $5.95 in fees. Add in the $0.35 in cost to liquidate and you have a total cost of $6.30 per card. For a $505.95 purchase you would earn 2,530 Ultimate Rewards points worth $25.30 in cash. That would bring you a profit of $19 with a rate of return 3.8% (5.7% if used for travel).
CLICK HERE to get more details and learn how to apply for this card and other travel rewards credit cards!
4. Discover It
The Discover card has a similar set up as the Chase Freedom does but it earns cash back instead of valuable Ultimate Rewards points. The Discover It card actually has better categories than the Chase Freedom this year. It has wholesale clubs in the 1st and 4th quarters. It also has the valuable grocery category in the 2nd quarter.
You should be able to find $500 variable load gift cards in all 3 of these quarters. Be careful of the wholesale clubs since most will sell One Vanilla cards, which are harder to unload with the death of USPS money orders. Their variable load cards are usually $1-$2 cheaper than grocery stores.
The numbers will be the same as the Freedom card above. The variable load card will cost at least $5.95 with a liquidation cost of $0.35. I earn $25.30 in cash back giving me a profit of $19 and a rate of return of 3.8%.
These are the cards that I currently have at my disposal that I use to make a profit while doing increased spending. Each card brings me a profit of at least 3.8%. Most of the cards I discussed do have limitations and do not allow as much bandwidth for the big time spenders. That is why I will be compiling a list of the top 5 cards for increased spending and I will be posting it tomorrow!
What cards do you use to make a profit? Let me know in the comments section!
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.