I used to be a hardcore credit card rewards junkie and wrote frequently on the subject (I even had a separate blog dedicated to it!). I considered it a game, and tried to win big each year by signing up for multiple cards with massive welcome bonuses, while optimizing rewards with specific cards for everyday spending (think groceries, gas, travel, etc.).
But credit card rewards aren’t nearly as lucrative as they used to be. Back in the day, it was nothing to get tens of thousands of travel points, or $200 to $300 in cash back, for minimal effort and minimal spending.
Often you’d get a bonus immediately upon approval, or after your first purchase. Easy! Or, spend $1,000 within the first three months. Still pretty easy. Best of all, these cards typically waived the first year annual fee.
But today these minimum spending thresholds have ballooned out of control. Card issuers are fighting back against “churners” like me, and so many credit cards now come with an annual fee, hefty minimum spend requirements, and often require you to hold the card past the one-year anniversary mark (and pay another annual fee). No thanks!
That said, it’s a game I still enjoy playing and I’ll take a swing at a fat pitch whenever I see a juicy credit card offer hit the market.
Related: I applied for 13 credit cards last year. What happened to my credit score?
I don’t apply for as many cards as I used to, but I have my daily drivers – the cards I keep in my wallet for everyday spending. Those include:
Then, I like to scan the market for new offers and time those applications around any planned one-time spending that is coming up in my budget. I call this ‘light’ churning.
For instance, I’ve already mapped out our spending and saving plan for 2025. Our youngest daughter needs braces and we’ll be shelling out about $7,000 early in the year.
I signed up for the TD First Class Travel Visa Infinite card, which offered 20,000 TD Rewards upon first purchase, and an additional 115,000 TD Rewards points after reaching $5,000 in spending within 180 days. It also came with a $100 travel credit when you book at Expedia for TD.
Perfect! I’ll pay for the braces in the new year and earn 135,000 TD Rewards points, and then redeem the points through Expedia for TD to book a hotel and/or rental car for our trip to Italy in April.
We’re also planning a small office renovation (built-in desks, shelves, cabinets) early in the year that should cost us around $10,000.
To pay for that, I signed up for the American Express Aeroplan Business Reserve Card, where (with a referral link) I can earn 70,000 Aeroplan points when I spend $10,500 within three months.
I’m confident I can turn 70,000 points into $1,750 in travel rewards value (at 2.5 cents per point), so even the steep spending and $599 annual fee will be worthwhile.
Have you noted any large one-time expenses coming up in 2025? Strategic credit card applications can help turn those already planned purchases into future travel rewards.
This Week’s Recap:
My last weekend reading update (VEQT and Chill for Life) generated a ton of traffic, comments, and emails from readers.
Many thanks to Rob Carrick for linking to that post in his latest Carrick on Money newsletter.
Speaking of newsletters, The Wealthy Barber David Chilton is back and absolutely crushing it on social media and with his new podcast. His email newsletter neatly summarizes the video and podcast updates, and it’s a must-read for your inbox. Sign up for it here.
Dave, call me if you want to chat about retirement spending or advice-only planning on your podcast!
Weekend Reading:
Short and sweet before the holidays.
Natasha Knox explains the money trauma of financial fawning – when we prioritize the financial needs of others to the point of neglecting our own well-being.
It’s a good time of year for Robin Wigglesworth to remind us to never ever make financial predictions – especially about interest rates.
A Wealth of Common Sense blogger Ben Carlson answers the age-old question about investing in stocks at all-time highs:
“You have to get used to dealing with all-time highs. They happen regularly, around 7% of all trading days since 1950. On average, that’s one new high every 14 trading days or so.”
Here’s Ben Carlson again sharing the four types of investing mistakes.
Mark Walhout walks you through the five big decisions that retirees need to think about as they plan out their retirement investment plan. He says, if you get these 5 decisions correct, you will be able to enjoy a virtually stress-free retirement when it comes to your investment portfolio:
Here’s more on the new study that suggests holding 100% global stocks is the way to go through life, even in retirement.
Finally, Andrew Hallam says you could be making this $1M mistake without realizing it.
Thanks very much for your readership and engagement this year, and all the best to you this holiday season!
