Heard about this on a podcast and thought about it for a bit myself. Basically lots of credit cards have rewards for opening a line of credit with them, spend x and get y on your statement or 10000 points or whatever. Essentially what you do is get a new credit card, reach the necessary goal that is planned out using required purchases (rent if you can, groceries, bills, etc) and then paying off the card in full and never using it again. A lot of these rewards are really good like spend 500$ in one month and get a 300$ statement. That’s essentially a free 300$ since you used it for necessities and paid no interests. Flight points are pretty big too.
From my understanding the credit hit is small if not positive depending on your situation as the hard inquiries and new accounts is countered by increasing your available credit. All of these have a small impact on your score anyways so even if it hurts your score it’s like saying would you take a 20 point hit on your credit to save x money and earn this amount of free flights and all that.
Obviously the catch here is to only use the card enough to get the bonuses, only spend what you were gonna spend regardless (necessities), and never carry a balance. Once the bonus is acquired you stop using the card. If you’re vigilant about this I don’t see how this isn’t an insane way to outvalue the system. Have you all heard about this? What are your thoughts, good or bad idea?
Submitted May 11, 2022 at 12:07AM by sorcshifters https://ift.tt/p6VAjy8
