Being a savvy opportunist when it comes to credit cards, I look to open a new one whenever a big expense is coming up. If I’ve got to drop a few thousand in an instant, why not get something back for it? Introductory sign-up bonuses for credit cards are absolute meal tickets. From the lowly spend $500 to get $200 cash back, to the highly spend a few thousand and get a thousand worth of mileage points in return.
It was the latter category of card that I was looking to open. Due to make my annual pilgrimage back home to China in a few months, there was a hefty airline and hotel bill on the horizon. Capital One was offering 90,000 miles - on $6,000 spend - on its Venture card. Even accounting for the $95 annual fee, it’s a decent return just for being a member of the high-tier credit score club.
Which is rather perverse when you think about it. People like me who do not need the freebies are being handed gratis enticements left right and center. Meanwhile, low credit score users could really use that $200 cash return. But they’re shut out of the gravy train because those sweet sign up bonuses are for highly qualified applicants only.
It’s kind of robbing the poor to pay the rich. Capital One will never make a cent of interest from my accounts. The monthly statements get paid in full. It will take them a rather long time to simply break even on the initial introductory offer on transaction fees alone. Well, someone’s got to cover up that difference. And it’s the low credit score havers carrying a monthly balance and paying the usurious interest rate.
As much as we want everyone to be financially educated and make good decision, those of us taking advantage of the system have to realize the sweet deals and credit card churning will disappear, should a majority of people get their act together. Should we feel guilty that an entire underclass of poor decisions is undergirding our opulent opportunities?
Tough to say. I’ll still take the points, though.
Here we come…