Author Topic: Spending $3000 on home repair - should I open a new card?  (Read 1945 times)

Lanthiriel

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Spending $3000 on home repair - should I open a new card?
« on: June 30, 2015, 02:15:19 PM »
In August I will be replacing my current 20-year-old water heater with an in-line water tank and re-wiring my boiler to be cold-fired. Quotes are coming in at about $2,800, which is close to the minimum spending balance on a lot of rewards cards. Churning makes me a little uneasy, but I figure if I can leverage a (cash-backed) purchase I'm already making into a $500 bonus (or similar), I'm kind of a chump for not doing so, right? I would be able to pay it off immediately. The husband and I looking to take a vacation to Ireland next year, so I wouldn't mind a card that doesn't have international fees.

What do you think--should I open a new card? If so, which one?

klystomane

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Re: Spending $3000 on home repair - should I open a new card?
« Reply #1 on: June 30, 2015, 02:32:57 PM »
Chase Sapphire Preferred should work in most cases (and yours); you would have to spend an additional $1200 over 3 months to get the bonus.

Easiest way to get into credit card churning is to get Chase Sapphire Preferred and then the Freedom.

...then it becomes addictive and you'll wish you found it sooner.


*Edit
Ah, I lie...I didn't even consider what you were spending it on.

I would say Barclay's Arrival Plus in your case (2x points).


johnny847

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Re: Spending $3000 on home repair - should I open a new card?
« Reply #2 on: June 30, 2015, 02:41:26 PM »
...then it becomes addictive and you'll wish you found it sooner.

Yup. I have 13 cards now and I only got my first credit card (not a rewards card, but a secured credit card) 09/13.

CSP is a great card for this. Flexible points for transfer to partners or you just use the points through their travel portal at 1.25 cents per point.

An option that is really great is if you can fly with AA/US Airways. The Citi prestige offers 50k Citi TY points for $3k spend. Each point is worth 1.6 cents towards travel on AA/US Airways (1.333 cents towards travel on anything through their portal). Earns 3x points on airlines and hotels, 2x on restaurants and entertainment, 1x everywhere else.

Now, this card does have an annual fee of $450. BUT
Quote
Automatically receive an annual $250 Air Travel Credit, to be applied to flight-related expenses charged to your card, including airline tickets, baggage fees, upgrades and more
This unlike most airline credits can be applied to FARES as well as airline fees (such as baggage fees).
And more importantly, this is a per calendar year benefit. Meaning you can use this twice during your first membership year if you time this correctly, effectively making the card free and then some. And if you don't incur $250 in airfare to use this credit on, just buy a gift card (but make sure you buy it directly from the airline to get the credit).


Lanthiriel

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Re: Spending $3000 on home repair - should I open a new card?
« Reply #3 on: June 30, 2015, 04:49:31 PM »
Sounds like I need to do some more research on this credit card churning business. Thanks for the input!

klystomane

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Re: Spending $3000 on home repair - should I open a new card?
« Reply #4 on: June 30, 2015, 05:08:51 PM »
Sounds like I need to do some more research on this credit card churning business. Thanks for the input!

Johnny's advice is great, but I think more for people who are experienced with churning and know exactly what they want to do with their points.

If I were in your shoes, I would lean towards anything that gives you max points that you can use flexibly, hence the Barclay's.

johnny847

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Re: Spending $3000 on home repair - should I open a new card?
« Reply #5 on: June 30, 2015, 05:15:07 PM »
Sounds like I need to do some more research on this credit card churning business. Thanks for the input!

Johnny's advice is great, but I think more for people who are experienced with churning and know exactly what they want to do with their points.

If I were in your shoes, I would lean towards anything that gives you max points that you can use flexibly, hence the Barclay's.

True, it may be a bit much for somebody starting out.
In my defense, the Citi prestige does let you use the points through their travel portal (as in, book any flight) for 1.3333 cents/point, which is better than the other flexible options - $665 is better than using CSP's points through their portal ($500) or using the Barclaycard Arrival+ ($444.44).

Flexible cards are great. But if you want to maximize value, you have to know what airline you're going to fly on, and kind of accommodations you want. Is it worth the time doing this research? Perhaps, perhaps not. No one size fits all solution here.