July 28, 2023 | View Online | Sign Up
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We’re currently eating our way through France, and it’s easily the most expensive time we’ve had in a while. But, it does draw my attention to the underappreciated perk of an effective credit card strategy: the “but at least” benefit.
“I just dropped $250 on dinner…but at least I got 4x points per dollar.”
“I just booked us into a 2 Michelin-starred restaurant for $400 a head…but at least that earned us a flight from London to Glasgow.”
“I just ordered my twelfth glass of wine…but at least…crap, I’ve lost my wallet.”
There are limits to every theory...Let’s get to the points.
In this week’s cheatsheet:
The ultimate beginner card
The bill that could kill us all (bit dramatic)
Are lounges really worth it?
Yes, I’ll look at the dessert menu,
Steven
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| CARD OF THE WEEK
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The Ultimate Beginner Card
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If you’re just getting started in the world of points and miles, I know it can be overwhelming. Picking your first travel credit card is a daunting task but we think we have the perfect one for your wallet: the Capital One Venture Rewards Card. Let me break down why it's the perfect product for newly initiated points enthusiasts.
💳 It’s not an expensive card to have in your wallet
When you’re taking your first steps in this game, it can be daunting. Hefty annual fees look and feel like throwing money away with no return, especially when you won’t reap the benefits for a few months. But this card’s palatable $95 annual fee is less than an over-the-top night out in most of the country (or just two drinks in LA).
🤑 It lets you earn on autopilot
If you’ve been reading this newsletter for a few weeks, you might be overwhelmed by my personal strategy. My partner and I have an armory of cards for different things, allowing us to maximize points. This card removes the complication and sets a flat earning rate of 2x points per dollar. Sure, you can’t grab 4x points per dollar on specific purchases, but it balances out by covering every purchase you make.
🤩 The welcome bonus is enormous for a card this affordable
The card comes with a 75,000-point intro bonus after spending just $4,000 within the first three months of opening. That’s a bonus only usually seen on much more expensive cards. Here’s just a taste of how much travel that could get you:
Up to 10 domestic US one-way flights on United by transferring your miles to Turkish Airlines
A one-way business flight to Asia by transferring your miles to Virgin Atlantic or Air Canada and flying ANA
A round-trip from the US to Europe by transferring your miles to Air France, British Airways, Virgin Atlantic, Avianca, and more
Multiple nights in a Wyndham Hotel by transferring your miles to Wyndham Rewards
It’s a tremendous card worthy of a space in anyone’s wallet, never mind the newcomers, but if you’re ready to take your first big step…well, you know what to do.
Learn more here.
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| TRAVEL HACKING NEWS
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The Bill That Could Threaten Our Loyalty Programs
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If you’ve been reading for a while, you might remember mentions of The Credit Card Competition Act, a bill that could potentially threaten our points and miles. Unfortunately, it’s back, and the risk is still there. Here’s a rough overview of what it means for us.
What is the Credit Card Competition Act of 2023?
At risk of over-simplification, the act would require banks to offer an additional network, other than Visa or Mastercard, to process their credit card transactions. This would, in turn, create competition with interchange fees (the fees merchants pay).
Isn’t competition a good thing?
Usually, yes. But in this case, it depends on who you ask. Merchants, especially big retailers, are enthusiastic as it lowers their current fees.
Would they, in turn, drop the cost of their goods? Probably not. That’s an opportunity for businesses to earn extra money with no perceivable difference to the consumer as we were already paying the price for a product.
But with fewer fees, reward and loyalty programs are likely to be the most affected. Much of the revenue gained from fees is reinvested in rewards programs, which in turn, encourages spending. It’s a cyclical process that benefits both the banks and the consumers.
What could happen?
A similar bill was introduced in the past, geared toward debit cards. The bill passed successfully, and within several years, almost all debit card rewards systems disappeared. On top of this, many free checking accounts also closed, disproportionately affecting those at the bottom of the socioeconomic ladder.
With less income, banks will protect their bottom line. Those decisions ripple across the entire system and could result in the loss of the travel rewards setup we now currently enjoy and make credit less accessible.
I encourage you to read up on it more, as it’s a big deal, whatever side of the fence you sit on.
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| 2X YOUR REWARDS
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Double Your Credit Card Rewards with a Single Click
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What if we told you that you could double your credit card rewards whenever you shop online? 🤔
Here’s a secret – it’s called Kudos, a free browser extension that helps you earn more at over 15,000 stores. For instance, if you usually earn 3% back from your credit cards on sites like Booking.com, Priceline or even Uniqlo, you’ll now get 6% with Kudos.
And did we mention that Kudos is
completely free?
Add Kudos to your desktop or iPhone in just 2 clicks and shop like normal. Then sit back and relax because Kudos saves the average user over $750 per year. Or, if you think like us, that’s one roundtrip ticket to Europe. 😎
Stop leaving money on the table – join our other readers and use code SMARTPOINTS to start doubling your credit card rewards with Kudos today.
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| LOUNGE LIFE
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I'm not opposed to Bugles...but would I call them a luxury travel perk? Ah, who am I kidding, I'm not picky. Bugle me up.
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Are Lounges Really Worth It?
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Lounges are one of the most coveted perks of any credit card. And why wouldn’t they be? The concept feels like the epitome of luxury travel, and they can be–free food, comfy places to rest, cocktails at the drop of a hat, what’s not to like?
But the operative word there is “can.” And when considering spending hundreds of dollars on a card with lounge access, is “can” worth it? Here are a few reasons to reconsider splashing on a luxury card if you’re only doing it for the lounge.
🛫 Not all lounges are created equal
As with anything in life, some lounges are better than others. While one may be decorated beautifully, packed with comfy sofas, well-stocked bars, and brilliant food, others are simple affairs. The photo above shows me in the lounge at Sarajevo International Airport. It was okay–clean and comfortable–but if you’re only traveling once or twice a year, is a bag of nuts and plastic-wrapped croissants worth a $400 annual fee?
👥 They’ve never been more accessible
That sounds like a good thing, but it’s not. Once, lounges were an exclusive perk for the well-traveled or wealthy, but now, you can buy access or gain it with a multitude of credit cards and other programs. This has created overcrowding in many airports. I’ve been denied access to full lounges and sometimes left them because they’re so cramped and loud. Many programs have introduced new rules limiting guests, among other things. The oft-dreamed-about experience is more likely to be found in business or first-class lounges, where most of us can’t afford to go.
💸 You’re not saving much if you don’t travel a lot
For me, lounges are still valuable. I can take up to forty flights and long days in the airport can add up when you factor in food prices. Being able to grab free grub does amount to a valuable saving for me. But if you’re traveling once or twice a year, it’s not making a huge difference.
💳 What can you do?
Lounge access can be bought for around $50, sometimes less, depending on the individual location. If you don't travel much and were willing to spend $400 a year for a card just for the lounge access, you're basically paying $400 for one visit (which is not very financially smart).
Instead, you can look at other cards with limited lounge access. Cards like this one offer stripped-down access that accommodates 95% of travelers. You don’t need unlimited access.
Remember, some perks are built to sound amazing. Always look at your individual situation.
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