The luxury of credit card points

amother

OP ↓

Yesterday at 8:40 am

It really bothers me, when posters say "I don't spend on vacation, I use points".
The fact that you use points is a luxury that so many of us don't have.

Instead we use our points for Amazon Cards to buy basic shampoo and toilet paper for the month.
Or the cash back option to at least pay something down towards the balance
Or as a charity option, to direct a donation towards ones school. Fundraising so the school will charge less tuition.

Yes, we get less value compared to a trip to Florida. But at least we get more of our basics covered.

It's just tone deaf. When a poster says she can't afford midwinter and she gets told "use points". That's a very "let them eat cake" mentality.

amother

IndianRed ↓

Yesterday at 8:50 am

Well it's kind of silly frankly. DH and I looked into it and most of the time (except maybe some sign up bonuses, you can get the same amount in cash back anyway and spend on whatever you want-- it's not a special cheaper airline ticket). It's like when people think they get a free phone with their phone plan every couple of years but the cost is built into the monthly bill.

But yes, points are a luxury for those that can afford to spend large amounts on a cc and pay it back.

amother

Tealblue ↓

Yesterday at 9:05 am

I hear your point and I’m not trying to be offensive. but I am very intentional about earning and spending my points. if I am working towards a trip I plan points for 6-9 months in advance maybe more. it starts by opening whatever credit card is giving best sign on bonus and then putting the biggest purchases we have on them to maximize earnings. I made a ‘deal’ with school to put tuition on credit card, I put shul membership on. camp etc. It’s all planned out so I spend the least amount of actual money on the trip. but since ir sounds like your larger point is that all vacations are a luxury and those that can’t pay their bills don’t take them: I hear that. I guess im more in the middle where my bills are covered but if I had to pay cash for vacations I couldn’t do that, so instead im strategic about points in a way they benefits my entire family

amother

↑ Tealblue ↓

Yesterday at 9:11 am

amother Bottlebrush wrote:

Its not tone deaf towards you, its gaslighting to themselves.

They use points to take vacations they cant afford and excuse it as "points" instead of being responsible.

this is rude, judgmental and ultimately: incorrect. BH I have no debt and cover all my bills. but there are things that I see a luxury (vacations are one. cleaning help is another but I don’t have any) that I can get by being clever. I am not irresponsible in the least and I very much live within my means. however travel and vacations are something that my family and I enjoy and find is the best way for us to bond and create memories that enrich our lives. we all spend money and time differently. I have issue spending time researching points and then using them rather than money for the luxury of travel. but I am by no means irresponsible. I’m fully paid up BH for yeshiva/camp/shul as well as maaser. how exactly am I being irresponsible ?

amother

Chestnut

Yesterday at 9:11 am

amother OP wrote:

Thank you for the education. I actually had no idea people used points in this way. We save ours to upgrade airline tickets for long overseas flights. Always have. We'd never spend on business class, but don't mind using the points to do it because they're "just sitting there anyhow". I genuinely didn't even know they could be used for amazon cards or cash back. DH deals with this stuff, not me.

(Although I have never told someone to "just use points" for a vacation. I'm just not the type to ever tell another person what to do with their money. Or their cc points).

amother

Black ↓

Yesterday at 9:14 am

You also have to know yourself and know if you can handle credit cards and if you won’t go into debt. If you think of a credit card as free money it can get you into trouble. Basically only spend what you can afford and if you can get bonuses like from points, great. Nothing to feel guilty about. And besides, if you have a United card, what are you realistically going to get with the points?

amother

Moonstone ↓

Yesterday at 9:15 am

DH and I signed up for multiple credit cards over the last couple of years. Using the sign-up bonuses, we were able to fly my daughter to seminary and again for pesach as well as take a trip to Floridalast spring first class. It is not for everyone. Many people get into trouble with credit cards.

One has to be very calculated but it can be lucrative. We could have redeemed for cash to pay our bills, but the direct redemption instead of the flights for my daughter would have resulted in it only about half the cash value and we would’ve had to pay for the flights ourselves anyway.

The trip to Florida, including hotels, costed the equivalent of redeeming $800 worth of points. Paying cash for the same flights and hotel would’ve been approximately $3700.

These are not direct point redemptions. They are transferring one program to another and sometimes a third and using partner airlines and other means to get maximum value. it does work, but it’s not for everyone.

amother

Hawthorn ↓

Yesterday at 9:18 am

amother Seagreen wrote:

We couldn't afford to go on vacation using cash, but by using signup bonuses and spending what we would have anyway, we were able to get a nice bonus and use those points for vacation.
Yes, we could have used those points for cash/rent, but bh we have what we need and this was a nice extra.

That's what op is trying to say. Some people are struggling even to have what they need and they can't use their points for anything other than essentials.

amother

Watermelon

Yesterday at 9:19 am

amother Tealblue wrote:

This.
I work very very hard for my points.
And only because they get me my vacation. I wouldn't be spending actually cash on vacation. The 1 point earned on purchases isn't what's paying my vacation.
It's opening multiple cards a year to get sign up bonuses.
One new card worth 100k points is enough for midwinter I'm Florida I'm a cheap hotel out of the way and cheap tickets. 2 new cards I can get decent hotel more central location more expensive tickets and car paid for.
Some years I don't use half the points I earn so it's just accumulating.

Even when I was on a very tight budget, I penny pinched in every other way hut didn't touch my points for anything else other than vacation.

I will literally open a new card for tuition.
I will open a new card for summer camp.
Anytime something pops up that I feel I can spend on a new sign up bonus I do it.

It's exhausting to keep on top of but that is my vacation fund.

It can be a slippery slope for people who can't pay the full balance every month, which is another reason it's not recommended.

Also, my points redemption is way higher for my vacations than it would be for toothpaste. I have another card that gives me cash back, (6% cash back on groceries) and that I absolutely would use to pay my everyday bills if I had to)

amother

↑ Hawthorn ↓

Yesterday at 9:21 am

amother Tealblue wrote:

I think thos poster was not referring to the people who are able to cover all their bills. There are many who can't cover all their bills, but they take a vacation with points and justify ot because they're not paying out of pocket, they're "paying with points". That's what she was referring to.

amother

↑ Seagreen

Yesterday at 9:23 am

amother Hawthorn wrote:

That's what op is trying to say. Some people are struggling even to have what they need and they can't use their points for anything other than essentials.

She was saying we are dumb and irresponsible for using the points for vacation instead of Amazon gift cards. I was explaining that not everyone sees it that way.
Everyone should do what works for them. This works for us. It is my husband's hobby and he enjoys figuring out how we can enjoy ourselves on a budget. You do you, but don't tell me my way is worse than yours.

Genius ↓

Yesterday at 9:27 am

If I go on vaca with cash, I’ll be kosher? I’m trying to figure out the problem here.
Your problem is that some people have a few cents more than you do? That they can use those pennies on luxury when you can’t? Seriously.
The offenses keep piling up.
(Why are you calling it cents and pennies?! Do you know how many rolls of toilet paper can be bought with that amount?! Actually I do. Doesn’t mean that somebody else is fooling themselves because they have the luxury of spending it on luxuries.)

amother

↑ OP ↓

Yesterday at 9:29 am

amother Electricblue wrote:

This thread reeks of jealousy. Some ppl think credit card point are a luxury some dont. Some think cleaning help is a luxury Some dont. Just because someone uses credit card points for Vaca doesn't make them privileged or entitled.

No. Im saying that acknowledge that being able to use credit card points for vacations is a luxury that so many can't imagine because they are using their credit card points for toilet paper.
And that sign up cash bonus that they're hustling for, that goes for pads, for the electric bill, for the Dr copay.

Just recognize the privilege that you have the luxury of points.
So many nowadays don't.
And when a woman says she's overwhelmed or exhausted, don't lecture her to take a vacation with points.