Look what showed up in my inbox today:
$20 for using the card one time? Sure, thanks! And look what showed up in my inbox a few days ago:
$20 for using the card five times? Sure, thanks!
Almost everybody who writes about credit cards focuses on the ones where you get a nice bonus up front and/or a 5% spending bonus on some category. Off the top of my head, I can think of three reasons for this:
- Everybody does it because everybody does it.
- The point/mile payouts are quicker and more guaranteed.
- There aren’t a whole lot of affiliate payouts for retailer cards.
Retailer credit cards don’t have huge sign-up bonuses, big promotional budgets, or the allure of free vacations. But based on my dabbling so far, I’m starting to think of them as dairy cows: keep a stable of them around and you can periodically score some milk.
Another good thing: since nobody’s talking about them and few people have them, you can talk (for now, anyway) without having to worry about killing a deal.
Which retailer cards should you get? There are two types of retailer cards: the kind you can only use at a particular retailer, and the kinds, such as you see above, which are cobranded Visa/MasterCard/Amex cards. In general, the V/MC/Amex cards probably have more potential since you have many more places to spend if there’s a really good promotion. And judging by their marketing, they apparently have a tough time persuading people to use the cards outside of that retailer which is why they’ll pony up $20 for minimal use.
However,the store-specific ones can be worth your while too: probably everybody knows what a good deal it is to get 5% off with your Target credit card (soon to be reissued as a MasterCard chip and pin, incidentally). And Frequent Miler is on the record as a fan of the Kohl’s card.
So consider a retailer card for your next round of apps. If you’re curious, here’s a list of Comenity cards and here’s a list of GE Money cards to consider, not that there aren’t other issuers as well.
Sure, it hurts to get a hard pull and a new account on your credit file but modest payouts and great promotions over a long period of time can more than make up for the lack of a sign-up bonus. Though I’ll admit to having somewhat different interests than a lot of you reading this: while many of you are looking for great trips on the cheap, I’m looking to save money for a family of six, whether that’s for cheap family trips or by reducing the cost of things I was going to purchase anyway. There is no one-size-fits all approach to credit cards, so it pays to think about what’s best for you and your particular situation.
CREDIT WHERE CREDIT IS DUE: I hadn’t realized this until I read the latest from George, but my pal Chasing The Points was the first one with the news about the Staples deal, so props to him on this one. I first read about it on Mommy Points, who said she saw it on Twitter but couldn’t remember the source. I’ve found myself in similar situations as a blogger, so I’ll cut her some slack there.
And while I’m discussing the excellence of Team Saverocity, my pal Matt has a nice post up: Finding, Not Killing, The Next Big Thing. It’s worth your time if you’re into this hobby at all, as he gives a good overview of who knows what in our area of the blogosphere.
And finally, to follow up on yesterday’s post, Andy at Lazy Travelers pointed out there’s currently a deal for a $19 per day all-inclusive resort in the Dominican Republic. Thanks Andy!
The problem with store cards is you’re going to need to get 10+ of these small promotions for it to be worth the hard pull. It’d be interesting to see somebody chronicle how many they get over a two year period or so, I doubt it’d be anything like 10.
Store cards are really better for those trying to rebuild credit as they are easiest to get (especially if using shopping cart tricks).
I dunno, you are letting them ding your credit to get like sometimes less than half the value of what a card can give you but still a full hard pull. (for example, some CCs may give like $500 of money or value right off, like say the Ink or Cap One–and arguably more, but a Gap card or something gives like $200.)
Re “CREDIT WHERE CREDIT IS DUE: I hadn’t realized this until I read the latest from George, but my pal Chasing The Points was the first one with the news about the Staples deal, so props to him on this one.”
I could be wrong, but I’m pretty sure the “news” was reported on FT long before any blogger reported it. Note time stamps of these posts on FT mentioning the $200 card at staples.com:
http://www.flyertalk.com/forum/22770844-post5.html
http://www.flyertalk.com/forum/22770951-post18.html
That’s not to say these were the first reports anywhere, but it wouldn’t surprise me if the blogger was tipped off by FT.
Yep, depends on the card. MilesAbound has found the BR card to be worth it, and I’ve certainly received my hard pull’s worth of benefits from the Best Buy card.
Mad props to whoever first shared this on the internet…
Well, yes, that’s the point. Might as well give mad props to staples.com for this one. 🙂 If we want to give credit where credit is due, shouldn’t it start with the blogger disclosing where they found it? You are one of the few bloggers that does this, so mad props for that.
Thanks for the mention, Nick. I’m really bewildered why these deals don’t get more traction with our crowd. These promos are so crazy cheap that even local expats buy them. It’s even cheaper than cooking (and drinking) at home. Sometimes, I have a feeling that miles and points have become the all-consuming and self-fulfilling purpose for many in this hobby.
The other reason to add a few of these a year is to have and to hold a fee free card.
My Old Navy Visa also got the $20 offer, in Jan or Feb.
Average Age of Accounts, the other AAA.
And just in case spending on these cards makes you cringe, you can often get the discount offer for opening an account while actually charging the purchase to another card. So the only thing it costs you is one hard pull.
Another strategy is to toss in a department store card or two to a churn, on the hope the pulls merge. Most of the department store cards I have are very old and I do occasionally get offers. But in my experience, they only come when you use the card at least a little. I no longer get $20 to spend at Nordstrom or the free birthday gift at Victoria’s Secret because any spending I do at such stores is typically put on a higher earning card – while the Nordie’s and VS cards remain in the sock drawer!