Travelling is expensive. But what if you could travel for free and stay in world-class resorts for entirely free. This is possible just by opening up credit cards and taking advantage of credit card rewards signup bonuses. The best part about all of this is that it takes just a few minutes to do and here’s how you can do it as well.
Let’s face it, credit card providers make their money from people who don’t pay it off on time or make the minimum payments. They end up paying somewhere between 20% – 30% percent interest on a credit card. This impacts their credit score and they end up paying astronomical interest on their purchases.
The thing to keep in mind is, this is not for people who have just recently got their first credit card and trying to build their credit. This is a more advanced technique where if you’ve already had a few credit cards going and have some history, then you might be able to apply for this. But it is not recommended for beginners, that are just getting started with building their credit history.
American Express® Gold Rewards
American Express is known for its luxury and is ideal for frequent flyers. American Express® Gold Rewards offers a Welcome Bonus of 25,000 Membership Rewards points when you charge $1,500 in purchases to your card in your first 3 months of Cardmembership but comes with a $150 annual fee. AMEX cards have a conversion rate of 1000 membership points which are equal to $10.00.
The 12,500 points can be redeemed for a one-way flight to anywhere in Canada and USA. With Air Canada, for every 20,000 points, you get 5,000 bonus points, which brings you to a total of 30,000 points. This is worth signing up for, considering you pay nothing and get 2 free trips to anywhere in Canada or the USA.
On top of the free trips, you also get a bunch of benefits like Lost or Stolen Baggage Insurance, Flight Delay Insurance, private lounge, etc. You also get $100 airline credit to be used towards free Wi-Fi, food, and other stuff.
TD First Class Travel® Visa Infinite Card
Similarly, TD First Class Travel Visa Infinite Card is also a great card that offers some great signup bonuses. You get 3 TD Rewards Points for every $1 you spend, 9 points when booking your travel through Expedia For TD online platform, which is about 4.5% returned points.The welcome bonus of 80,000 points is worth up to $400. You can get 20,000 points after your first purchase, then 60,000 points on purchases made during the first three months. The annual fee of $120 is rebated for the first year as part of the promotion.
TD also offers other benefits such as, Emergency Travel Assistance Services, Travel Medical Insurance, Priority Pass Membership discount; providing you access to 1,200 VIP airport lounges across the world, etc.
KEY TAKE AWAY POINTS
It is very important to note that you just don’t go out there and spend like an extra $1,500 on stuff you don’t need. Only do this if you’re going to be spending $1,500 anyway. All it means is you put it on a travel card instead of paying with like a debit card or a regular credit card. Otherwise, it’s not worth the 25,000 or 80,000 points.
Another point I want to mention, it is very important when it comes to this. The first thing is that a lot of people are worried it’s going to affect your credit score when you open up new credit cards and close them out. This is somewhat true, this is why it is not recommended for beginners.
This is only suggested if you already have established credit history, it’s not going to make a huge impact on your credit score. Your credit score is impacted only for 6 months, however, it is temporary and will resume back to normal.
I would not recommend this if you’re going to be buying a house, a car or getting a loan. The reason it impacts your credit is that once you open up a credit card, you get an inquiry, which is when the credit card company looks into your account and they see what sort of credit limits are given to you and how your payment history is. Since you are actively inquiring about credit cards, they get worried that you are taking up debt and you are seen as a higher risk.
Lastly, credit card companies offer amazing deals with their signup bonuses that are absolutely worth signing up for. But the key is to be responsible, by not over-spending and paying the card balance in full. If you know you’re the type to go to the mall and see a brand new TV, then buy it because you have credit cards sitting around and then not pay it off? Then I would suggest not getting into this. The proper way to do this is just spending the minimum on the card reach whatever threshold you need to get the bonus and then pay off the full balance. You do not want to start paying interest to credit cards because that negates all the benefits you get from signing up and reaping all the signup bonuses.