.5% is a 100% Cost Increase – A Huge Difference

As I am gearing towards $30,000 of spending on my American Express Starwood Preferred Guest Card, I had the opportunity to purchase gift cards at 20% off and resell at 79% of the face value or 10% off and resell at 89.5%.

The .5% is the difference between buying points at $.01/point and $.005/point. Also note that a .5% is a 100% increase in cost. Because of that, I almost always avoid gift card churning when buying points at $.01/point as it is costly.

The only time I can justify buying points at a penny would be to hit spending goal bonuses. I wound up buying both the 20% off (Barnes and Nobles) and 10% off (Nordstrom) in order to hit the SPG gold status.

I still have about $3,500 left in spending from now to the end of the year. I am still on track to spend $30,000 with the SPG credit card.

4 comments… add one
  • Would it just be cheaper and less hassle to get the Amex Platinum card? Or are you prevented from getting the bonus?

    • You’re right it would be less hassle getting the AMEX Platinum. After charging so much on the SPG card and with the extra benefits of the Platinum, I am highly considering opening it.


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