PSA: Heard a couple at the airport talking about their 'free' hotel stay

I was waiting for a flight to Chicago last week and overheard two people bragging about how they got a five-night hotel stay for free by using a credit card sign-up bonus. They were really excited, but then one mentioned the $6,000 spending requirement they had to hit in three months to get the points. That's a huge trap if you're not already spending that much normally (or if you have to buy stuff you don't need). It made me realize these 'free' travel deals can actually push you to spend way more than you save, which is the opposite of budget travel. Has anyone else found a truly low-pressure way to use those points without going into debt?

4 comments

4 Comments

kai_webb913mo ago

Remember my cousin buying a bunch of gift cards to hit a bonus.

angelarivera3mo ago

Wait, he bought gift cards just to get a sign up bonus? That's a terrible way to hit spending limits. The fees eat up so much of the value you're supposed to get. I knew someone who did that and basically ended up paying more in fees than the bonus was worth. It turns a good deal into a complete waste of money.

wyatt1351mo ago

Are you counting the fee as a percentage of the whole spend though? Like if the gift card has a $5.95 fee and the bonus is $200 that's still a great deal, you're netting like $194 before you even factor in the points you earn on the purchase itself. I've done it with Visa gift cards from Staples when they have no fee promos and it worked out fine for hitting a big sign up bonus on an Amex. You just gotta be smart about where you buy them and read the fine print first.

murphy.tessa3mo ago

Yeah, @kai_webb91, just watch out for those activation fees.