Question- “Spending $10,000 on a purchase – which card?”

Note – this information is also good for spends less than $10,000 -it’s more about getting near 10% back on credit card purchases.

I had a friend just ask me this question -after he had already spent the money. karen2

Now, he used the Amex Gold Rewards Card which got him 10,000 MR points.

Let’s call this option 1.

Option 1 gets him either $100 in travel credits through Amex (1% return) or if converted to Avios points he could actually get one ROUND TRIP flight from our area, Detroit to NYC/Philadelphia/Washington,DC or Charlotte (Avios short haul flights)

That’s a better option and I’d say worth at least $200 or a 2% return on money spent MINIMUM.

Option 2 is pretty nice as well – he just recently got the Amex Starwood Card and that would get him 10,000 Starpoints.

That is enough for a FRI/SAT/SUN weekend in a Starwood Cat. 2 hotel such as these ones.

I have done numerous posts on Starpoints and would conservatively put that as a $350 weekend or better, so lets call that 3.5% return on money spent (or better)

Here is an article from last year – that gets you a 5% return easy.

In general, I would say put all purchases on the Starwood card – they are the most valuable points in the industry according to numerous bloggers.

The thing is…you need to be aware of credit card bonuses out there for Canadians and know when to get what card.

This is one of those situations. This article explains what I mean.

What he could have done is this:(knowing he was about to spend $10,000)

Option 3 Got the Amex Business Gold Rewards Card for himself.

(After spending $5000 first three months you are awarded 40,000 MR points plus the 5000 you get for spending)

This card is still FREE FIRST YEAR karen1

It is the third one down when you click the link.

Referred his wife (spouse/partner/friend all work) and received another 10,000 points.

She also gets the same 45,000 points for the $5000 spend.

Knowing the vendor takes Amex and knowing they could put the purchase on 2 cards – BINGO! In 1 transaction (he uses card for $5000, she uses card for other $5000) they pick up 100,000 MR points between them (can’t be split – 45,000 + 10,000 for him/45,000 for her)

At the VERY WORST they are getting $1000 in travel for that, or a 10% return on money spent. Many bloggers put the value of MR points at $.02 each when converted to airline miles so that is actually more like a 20% return on money spent.

Do you know what 100,000 MR points converted to Avios or Aeroplan can get you?

Avios – 5 round trip flights Detroit – Miami (as 1 example)

Aeroplan – 4 round trip flights Detroit – wherever in Canada/continental US

In this game, knowing the bonuses out there and timing can go a long way.

Option 1 gets him 10,000 MR points.

Option 3 gets them 100,000 MR points – on the exact same purchase!!!

Know what is out there!

Obviously there are other cards out there – but many give you a 2% return at best – because Amex gives bonuses you win with them!

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