Random thought as I ponder some of our various activities. In addition to the benefit of sign-up bonuses, and manufactured spend for miles/cash back, I believe our activities reduces our risk for exposure to credit card breaches (as publicized by Target, Home Depot and many others).
If I am a card churner...apply / meet minimum spend / get bonus / close account, it is quite likely that if a retailer has a breach, by the time the data is sold to the dark market, I have already shut the account and moved onto the next card.
Maybe I am purchasing gift cards at a 5% back retailer and then use those gift cards at other retailers (net 3.8% back). My real credit card information is only exposed/stored at a single retailer. Only gift card information is stored with the 99 other retailers that I frequented that month, and as above, if the gift card information is breached, the card is likely already spent down.
Now for the contrary position...if I have dozens of open credit accounts and too many to diligently keep up on (so I autopay them), I have the opposite risk of not catching some unauthorized spend on the account.
Net: managed smartly, in addition to the financial benefits which we are striving for, we also may inadvertently be reducing our risk exposure to credit card data breaches. This could be another 'point' to those you are trying to convince that this game is worth playing. 3.8% back and 99% reduction in breach risk is pretty compelling and could overcome the 'nuisance' of dealing with VGC.
If I am a card churner...apply / meet minimum spend / get bonus / close account, it is quite likely that if a retailer has a breach, by the time the data is sold to the dark market, I have already shut the account and moved onto the next card.
Maybe I am purchasing gift cards at a 5% back retailer and then use those gift cards at other retailers (net 3.8% back). My real credit card information is only exposed/stored at a single retailer. Only gift card information is stored with the 99 other retailers that I frequented that month, and as above, if the gift card information is breached, the card is likely already spent down.
Now for the contrary position...if I have dozens of open credit accounts and too many to diligently keep up on (so I autopay them), I have the opposite risk of not catching some unauthorized spend on the account.
Net: managed smartly, in addition to the financial benefits which we are striving for, we also may inadvertently be reducing our risk exposure to credit card data breaches. This could be another 'point' to those you are trying to convince that this game is worth playing. 3.8% back and 99% reduction in breach risk is pretty compelling and could overcome the 'nuisance' of dealing with VGC.
