So I applied for the Chase Sapphire Preferred travel credit card last year and have been very intentional about trying to build as many travel points as possible since. My motto is if I'm already spending the money, I might as well get rewarded for it. I never go overboard purchasing things on my credit card that I otherwise couldn't afford. Instead, I use my credit card anytime I would have normally used my debit card and just pay it back off in full the same month. I use it any time I am buying food, gas, clothes, etc. which is probably pretty normal. But recently, I used it to put a $10,000 down payment on a car which is probably not the typical go-to LOL.
I was blessed to be in a really great position financially where I had a great paying job with a company-provided car and no student loans. Up until the end of last year, I also had a roommate to split the bills with. I've always been really good at saving money and knew from early on that I wouldn't be in a position to keep that company car forever. So I was actively saving that money most people would have been spending on car maintenance, loan repayment, and full rent for when I'd finally need to get my own car. That time came this past February after I got a new job and moved back to Atlanta.
I decided to purchase a Toyota Corolla and, although I couldn't pay in cash completely, I wanted to put as much down as possible to keep my overall balance and monthly payment low. I also realized that this was the perfect opportunity to rack up a ton of travel points if the dealership would allow it.
I checked my total spending limit available on my card to make sure I wouldn't get too close or run over (they recommend no more than 30% but I passed that just this once knowing I would pay it off as soon as it cleared). After that, I asked the dealership if I was allowed to pay using a credit card and they said sure. So I swiped that bad boy!!! I made sure to transfer the saved money to my credit card to pay it off immediately.
By the next billing cycle, I got 10,000 points added to my travel balance. Based on the redemption value of 1.25 cents per point, that's $125! Depending on when you fly and from where, that can cover roundtrip flights within the U.S and even to a couple of places in the Caribbean or Central America! For example, that can potentially cover a flight to Guatemala, Costa Rica, Puerto Rico, or Panama. I used mine to go towards Guatemala, which I'll tell you about soon!
Moral of the story, take advantage of those big expenses!
It can be a down payment, rent, furniture, moving expenses, school costs, large maintenance bills, etc. If you have to pay for it anyway, might as well get rewarded for it! Pay for it on your credit card, pay the card off, and reap the benefits. It's wonderful!
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