If you are spending the money anyway…

So I’ve seen a few posts lately about return on spend on certain credit cards – this one by Rewards Canada nails it.

Yes, the SPG card from Amex is great, and it’s my favourite card but there is something we as Canadians can get amazing value on – The Amex Business Gold Rewards Card.

***Note – most people can get this card by just calling themselves a business – it’s not hard

I know some of my friends don’t think twice about points and what card to put a purchase on. In fact many would put a purchase on their PC Mastercard or CDN Tire Mastercard and be happy with the lousy return they get on that.

Ya, I said lousy. It is lousy. Sure if you are in that actual store spending on that card you’ll get a decent return, but otherwise? Meh.

I did a post on this exact spend idea a couple of years ago and because it has come up in conversation lately, I’ll bring it up again.

Let’s say you(as a couple) need to spend over $10,000 in the next few months.

Well, in the industry now, a 2% return on this is seen as pretty good.

So, $200 back on your $10,000 spend is nice, but wouldn’t you rather get like…$1000 back?


Image result for family travel


Is is easy, and requires you and your partner to get 1 new card each. $1000 back to spend $10,000.

  1. You get the Amex Business Gold Rewards Card and spend $5000 on it in 3 months
  2. You pick up 45,000 Amex MR points to do that.
  3. After you get card, you refer partner to that same card – you pick up 10,000 more MR points. You have at least 55,000 points.
  4. Your partner does same spend and picks up 45,000 Amex MR points.
  5. Between you is 100,000 Amex MR points worth MINIMUM $1000 in free travel

A couple of things to keep in mind.

You can’t share MR points – they have 45,000 and you have 55,000.

You can convert those to “family” accounts in travel programs like SPG and Avios to name a couple. – SPG is highly recommended – you’d have 50,000 SPG or 100,000 Avios.

Perhaps this is all once purchase? You get card, refer partner, then make purchase over $10,000 using both cards…

So, in this example and for many people I help out with this the person usually uses Amex MR points to “erase travel” That means the 55,000 points can erase a purchase of $550. The 45,000 points can erase a $450 purchase.

That is great, but really that is the least value.

You should take your time and learn where you want to put your points –  if you ended up putting these points into SPG and getting 50,000 SPG points in a family account that is roughly worth anywhere from $1500 – $2500 in hotel stays.

Convert to Avios? Gives you 100,000 Avios worth a similar amount in airfare.

In the end, it’s at least a 10% return on money spent – and the cards are free first year!


Image result for family travel disney




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