Author Topic: Help! Looking for ideas/strategies to earn credit card rewards on “rent”  (Read 1456 times)

LauraL

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Does anyone know of a way to pay an individual with a credit card without having to pay a fee? We just moved into our first house, and I pay my boyfriend “rent” toward the mortgage. Currently we do the transfer directly from my bank account for free through Venmo, but I’m wondering if there’s a way we can leverage my Citi DoubleCash card to make a 2% profit each month. Amazon Pay used to allow $1000 in free credit card payments to individuals per month, but they nixed that a few years ago. Apps/sites like Venmo, Zelle, and PayPal charge 2-3% per CC transaction, which would negate/outweigh the benefit. Can anyone think of a more lucrative way to do this?
« Last Edit: November 18, 2017, 03:06:44 PM by LauraL »

kasperle

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I've been thinking about this lately, myself. One thought I had was to put the transaction on a card that had much higher than 1-2% rewards. If you're interested in traveling, the sign ups for travel rewards credit cards may make the fees worth it.

From the introduction guide of Travel Miles 101:

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In general terms, a signup bonus is approximately 50,000 points; each should be worth at minimum $500 – $1,000 (and if redeemed exceptionally well, we’ve seen over $2,000 of value from one card).

Let's assume your rent is an astronomical $3000/month, and that the sign-up bonus is "only" $500.

A 3% fee would be only $90. This gives you $410 net profit, or a 14% reward bonus.

Of course, if your rent is cheaper, or if you find a better signup deal, then your return could be even higher.

LauraL

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Great point. I only pay $1000/month, so I’ll have to look into that idea.