The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: FireDAD on December 19, 2019, 03:33:13 PM
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I am taking over a business that runs between $40,000 and $60,000 a month through a credit card for inventory. I am looking for the best way I can leverage this into additional income.
I know just enough about credit card churning to know that this amount would meet minimum spend requirements like crazy and I'm not really looking to open 4 new cards a month.
Rather than focus on constantly getting new cards for the sign up bonuses I'm looking for the best possible returns on such a large amount for the long haul.
Thank you all!
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What categories is this in? Look into the Chase Ink business cards, Chase Freedom Unlimited @ 1.5%, Citi Double Cash @ 2%, etc.
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What categories is this in? Look into the Chase Ink business cards, Chase Freedom Unlimited @ 1.5%, Citi Double Cash @ 2%, etc.
95% inventory purchases - Shoes, clothing, etc.
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Do you fly? If you care about spendypants flying and travel, you would have "diamond" status or whatever on any of the majors at $250K/year spend. That would be cool. An AMEX travel card would have some neat options for both flights and hotels. If flying was a major appeal (you live in a city with a hub airport, like to travel last minute a lot, value perks), then the airline card plus AMEX card would be the most fun.
For a true mustachian, there is a fidelity product that gives you 2% cash back to an investment account. That would put the most in your pocket over time, without chasing sign up bonuses or travel rewards. I think that is the highest cash-equivalent reward available.
Generally, where you get above the 2% threshold is if you redeem for luxury, non-mustachian travel things like first class. If don't care about that, I would get the best cashback card you can.
Also, for a while, the business cards had categories where you could get 5x points on an advertising spend, and 3x on gas or whatever. Since advertising was a major part of my biz expenses, I got one of those cards to match to that account. I think Chase phased that out, but it's worth looking into.
Generally, as a biz owner, the highest best use of your time is not chasing points. But it's fun. I'd go to a more CC specific forum like flyertalk or something for ideas.
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I find that I get the best return by paying attention. What unusual offers are out there. Some examples of what I'm doing this quarter:
Sears Citi Mastercard: 20X thank you points which can be converted into gift cards. My target is CVS. This works out to about 10% discount.
Citizens Bank Visa: 5% back until March 31. Funny setup where you receive 1.8% not but get the other 3.2% in April.
Discover: If you get a brand new one, watch the reward 5% categories. At the end of the first year, this is doubled for 10%.
Chase Freedom: Notorious for 5% rotating categories.
For category cards, I literally write on a piece of paper the % and what is included and tape it on the card. Yes, it can be work to keep track and shuffle cards. If you don't want to do that, fine.
Backup cards for me. Fidelity and Citi double cash. Both are 2% back.
I would not ignore sign up bonuses if you haven't already used up the good ones. Cap One and Chase are the first ones to get because they both have strict rules on how many cards you can apply for (any). The infamous Chase 5/24 rule, and less known, Cap One that I forget but was denied by them.
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The Capital One Spark cards would give you a $2,000 bonus after spending $50,000, then 2% back on all purchases after that.
https://www.capitalone.com/small-business/credit-cards/?external_id=WWW_WF985_ZZZ_SEM-COSB_ZZZGO_T_COSB_ZZZZ_c_Zg_65fca07e-8ce7-4517-9904-eaa666fc2696_366775493670_419&target_id=aud-380580878611:kwd-313408327412&gclid=Cj0KCQiAovfvBRCRARIsADEmbRI8O1rOGthgAFDkFm52qAixpcy_RSJjnLLXkKcRBG4_r3ZYjTJt5YEaAluMEALw_wcB
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Capital One Spark to start for sure! After that, I'd look for another juicy bonus or possibly go with one of the Chase cards like the Ink.