My Weird Hobby: A Credit Card/Bank Bonus Earnings Report

From what I understand, the credit card industry has a name for people like me: a deadbeat.  I use credit cards for convenience and pay my bill in full each month.  They don't make any money off me.

For most of my adult life, I had a very simple credit card setup of always more than one card and never more than three.  Prior to the fall of 2022, my lineup was: Amazon, Target, and Costco.  $0 fees, 5% back at Amazon and Target, and lesser percentages for all other spending.  The reason that the fall of 2022 is significant is because this is when I started traveling, and a lot of credit card rewards are specifically for travel.

I kept hearing about Credit Card Hacking, and claims like "I got a $40,000 trip for free" and "my family gets $15,000 in free credit card travel every year!"  Was I missing out?  How exactly would I go about getting my mitts on the goods? 

This is the story of what happened when I decided to find out.

I could talk about this stuff all day, and I have a feeling that I probably will, so I've done my best to put the juicy stuff first and then get into the weeds.  There is no point to this post other than for me to geek out on numbers.

How Much Have You Made and Was It Worth It?

Here is the TL;DR snapshot of the credit card rewards and bank sign up bonuses that I've gotten in the last 2.25 years (between October 2022 and December 2024).  As you can see, it is not tens of thousands of dollars but in my opinion it is quite a bit more than I was getting before.

I didn't want to list out every financial institution that I've done business with, so I only identified the accounts that I have something special to say about.

I also didn't want to just drop numbers without telling you where they came from, so here is the tea on that:

• Cash: self explanatory.  Cash that I received for opening new accounts.
• Travel redemptions: money that I was going to spend that I did not spend because I used travel points instead.  The break down on the $505 in the table is:
• Chase Sapphire $265: so far I've redeemed points for hotels rooms twice, specifically in the summer of 2023 ($125) and the summer of 2024 ($140).
• Hyatt $240: in September 2024 I spent two nights at a Hyatt.  The cost was $240 in cash or 10,000 points, so I redeemed 10,000 points instead of paying $240.
• Unredeemed travel: my estimate of the value of the travel points that I have not redeemed yet.  Until I cash in, I consider this to be "funny money" because I have not gotten a benefit from it yet.  The purpose of stockpiling points is that right now I have a good job with a fat paycheck, but in a few months I plan to ditch the job and lose the paycheck, and when that happens I will cash in the points for travel.  The goal is to get these points spent by the end of 2026.  There are ways to redeem them for big bucks in free travel, but whether I end up doing that or not remains to be seen.  For now I've valued them at the "lowest case" scenario.
  
• Chase Sapphire:  I have 112,000 points: 80,000 were from the sign up bonus and the rest are what I have earned since then less what I've already redeemed.  These points have a value of 1.25 cents per point when redeemed through Chase's travel portal.  The math is 112,000 x 0.0125 = $1,400 in the chart above.
• Hyatt: I have 55,000 points.  Hyatt's point redemptions range from 3,500 to >30,000 per night.  There are a decent handful of 5,000 per night hotels out there, but I think it's more likely that I would fall on the 10,000 per night end of things.  Previously my Hyatt stays have worked out to $120 per night, so I went with 55,000 points/10,000 per night = 5.5 nights x $120 per night to get $660.
• Amtrak: I have 40,000 points and since I have yet to take an Amtrak trip and don't really know the score yet, I went with The Points Guy's valuation of 2.67 cents per point: 40,000 x 0.0267 = $1,068.
• Chase Freedom Unlimited: the secret sauce with this no fee card is that points can be transferred to the Chase Sapphire.  The sign up bonus was 25,000 points valued at 1.25 cents per point = $312.50

As far as the "was it worth it" part of the question, I believe that the answer is yes.  It is difficult to quantify what the rewards were back when I put most of my spending on my Amazon card and I haven't tracked the cash back from spending that I've gotten on the new cards.  That is why I'm stating an opinion instead of giving hard numbers.

If I wasn't interested in travel, I would get a no fee 2% cash back card to replace all of my non Amazon/Target/Costco spending and call it a day.  In a year where I spend $40k, that would mean a minimum of $800 in cash back (more for higher category things like the 5% at Amazon, 3% on dining and travel on the Costco card), so that's the benchmark that I will use to evaluate how much value I get from travel going forward.

Is Travel Hacking for Everyone?

Oh God, no.  I enjoy messing around with numbers, and I'm able to keep track of making five different credit card payments in one month without batting an eye.  I know a lot of people who would not consider this to be "fun".  Specifically the person that I am married to.

I have never carried a credit card balance so I don't know or care what my interest rate is, but from what I understand it is not nice.  It is a pretty standard personal finance recommendation to stay away from credit card hacking if you have credit card debt.

What I Pay in Credit Card Fees

Here is what I get for the annual fees - please note that these cards come with a lot more benefits that what I've listed, but I'm only claiming things that impact my bottom line.  For example, the Sapphire card comes with Door Dash credits, but I don't use Door Dash so I get $0 from that benefit.

• Sapphire: 
• $50 annual hotel credit for travel booked through the Chase portal.  The downside is that it's kind of a pain to use the portal, and the prices can sometimes be higher than you get by booking directly with the hotel or through other travel portals.
• Travel insurance.  I am not someone to buy insurance when it's not required.  Travel is a want and not a need, so if I'm ever not able to take a trip that's just too bad.  However...the fact that I have it has proved useful.  Last year I booked a non-refundable Airbnb for $300 but wasn't able to go on the trip because of a winter storm.  The process to file a claim for the $300 was very easy, and I got the money back in a few weeks.  My experience was a 10/10.
  
• The ability to transfer points to Chase's travel partners (hotels and airlines).  These point redemptions can be worth a lot more than Chase's 1.25 cents per point rate, and that's where the "tens of thousands of dollars in free travel" claims come from.
• I plan to keep the Sapphire for as long as I feel that the point redemption/travel insurance benefits outweigh the net $45 cost.  It's my primary card for travel spending. 
• Hyatt:
• One free hotel stay per year after the first year.  The best deal that I've seen on Hyatt is $120 per night, so the way that I think of it is I'm paying $99 to get something worth $120.  The ideal situation would be to use the credit for a much more expensive stay.
• I'll keep the Hyatt card for as long as I have one hotel stay per year, so indefinitely.
• Amtrak:
• Benefits of the annual fee include points for free travel, discounts, and a companion pass.
  
• This is the Card Most Likely to be downgraded to the free version.  I haven't taken an Amtrak trip yet, and there is no way to know how much train travel I will do in the future/whether Hubs will be available to take a trip with me to get the benefit of the companion pass.  My rule is that if I don't take a train trip in 2025 that I have to downgrade this card to the free version in 2026.  The more I think about it I should probably just downgrade it before my 2025 fee is due.

What About the Two Other Credit Cards That You Named?  What's the Deal With Those?

Yep, there are good cards out there with no annual fees.

• Capital One Savor One: this was the first credit card that I got when I was dipping my toes into the credit card hacking waters.  At the time I was reluctant to pay an annual fee, and I liked the 3% cashback on groceries.  I knew that it had something to do with travel but I wasn't sure what.
• What it has to do with travel is that it gives me access to the Capital One travel portal.  I've seen some mighty good deals there.
• It also gives 5% cash back on travel booked through the portal.  That combo proved to be pretty sweet last fall when we went to Chicago.
  
• Chase Freedom Unlimited: this card pairs nicely with the Chase Sapphire card.  It gets 1.5 points back on everything compared to 1 point for the everything category on the Sapphire.  It's a faster way for me to rack up Chase points and oh it didn't hurt that it came with a 25,000 point sign up bonus.
  

Will You Get More Credit Cards?

Maybe.  Right now I feel that I'm in a good place and adding more cards would just keep me at a break even point instead of increasing my payoff.

For example, the Capital One Venture X is very popular.  It has a $395 annual fee but that's offset by a big ol' sign up bonus worth $750, a $300 per year travel credit, and a $100 points booster after the first year.  People can't tell you fast enough that the $395 fee minus the $300 travel credit minus the $100 points booster is FIVE WHOLE DOLLARS THAT THEY'RE JUST GIVING AWAY FOR FREE!!!!!

The real reason that I don't have the Venture X is that I got denied for it.  Capital One thinks I have too many new credit card accounts (read: they know I'm a deadbeat who is just in it for the sign up bonus).  If I felt strongly about it, I could call customer service and ask to be reconsidered, but I don't feel that strongly about it.  

However, since Capital One doesn't want me, I've taken more time to think about it and decided that for right now I don't want them.  It would be nice to get the $750 sign up bonus, but I'm not really that interested in the $5 a year that I would get long term.  I've also heard that their hotel and airline transfer partners aren't as good as Chase's partners.  Down the road I might play in the Capital One or AmEx sandboxes, but right now I'm Team Chase.

Whatcha Gonna Do With All of Those Chase Points?

Ideally I will transfer them to airline partners or to Hyatt.  Last year I looked at a flight to Portland on United, and the cash price of the ticket was $1,200.  The points price was 80,000 and woo hoo I can transfer my Chase points to United, and if I put in some extra legwork I might find another transfer partner with a better points deal to book the flight through.  Getting a free hotel night here and there is all very well, but getting "free" $1,200 plane tickets is even better.

Hyatt is a special snowflake because their point values are very good.  The only thing is that there aren't a ton of Hyatts in the US, and also I don't stay in hotels very often since I prefer Airbnbs.

Dude What's Your Credit Score?  Does Getting New Cards Mess it Up?

Nah.  I see a temporary boost every time I get a new card.  As you can see, Vantage doesn't like that the average age of my credit is under five years and the number of credit inquires I've had.  The only issue that I've had is that I opened too many cards in too short a time, so certain lenders will not give me new cards (Capital One, Amex, Citi).  If I ever wanted a card from these folks badly enough, I'd pick up the phone.  As it is I've taken the hint to focus on Chase, who loves me as long as I'm under 5/24 (no more than five new cards in the past 24 months).

 

How Often Do You Use Each Card? How the Freak Do You Keep Track of The Payments?

Most of my spending goes on my Amazon, Sapphire, and Freedom Unlimited cards, so it's not that much to keep track of each month.  When I get a new card I use it for my everyday spending until I meet the intro bonus requirements, and after that I only use it for what it's good for.  For example, when I got the Hyatt card I did all of my spending on that until I got the bonus, and now I only use it at Hyatt.

Every once in a while I'll get notices from the credit card issuers when I haven't used a card in a while, and when that happens I make a small purchase so that they don't cancel the card.

I said before that I'm All That when it comes to keeping track of my spending, but also I like having a second set of eyes to make sure that I don't miss anything.  I use a free tool called Empower Personal Capital for a snapshot of my accounts and spending so that I have an all in one place to see what's up.

What Are the Disadvantages to These Cards?

I wouldn't say that it's a disadvantage, but it seems to me that there is some over promising in the travel hacking world in the "tens of thousands of free travel" department.

Getting the Chase Sapphire Preferred sign on bonus of 80,000 was amazing, but I don't have a way to repeat it.  After that sweet, sweet sign up bonus my points are coming from my spending.  I currently charge about $40k on credit cards a year, and I don't foresee a radical increase in spending anytime soon.  It's true that some of my spending is in categories that get more than 1 Chase point per dollar, but a lot of it is 1 point stuff.  That's 40,000 points per year (well actually it's 60,000 because I now do all of my one point spending on the Chase Freedom Unlimited that gives me 1.5 points per dollar).  But still, you get what I'm saying...we're talking in the ballpark of a thousand dollars in travel instead of "tens of thousands of free travel".

One common way to get credit card points is through referral bonuses - you give someone a link to sign up for the card and you get a points referral bonus.  That's why there are so many social media posts on credit card hacking.  I watch YouTube videos on travel hacking because it's my idea of fun, but I can't help but notice that it's very rare to see a negative review.  I have used links from creators that I like to sign up for cards, but I also feel that it's a conflict of interest.  Because I feel kinda icky about it, I have chosen not to use referral links in this post.

I also think that there is a line between entertainment and obsession in chasing rewards.  I have a high level understanding of which card is good for what, but I don't over optimize.  I *could* use my Costco card every time that I get gas for 4% and I *could* use my Savor One at the grocery store for 3% back, but instead I use my Chase Freedom Unlimited and get 1.5 points per dollar to further my End Goal of stockpiling Chase points. 

The other major disadvantage of travel hacking is that it takes time.  Right now I've got a nice stash of points, but that's after 2.25 years.  It also takes time to move points to transfer partners, so it's not a very spontaneous hobby.

Any Other Tips?

If you're on the fence about getting one of these cards, I say wait and keep your eyes open.  Sometimes there are special deals on the intro bonuses.  Here are two personal examples:

• The Chase Sapphire normally has a 60,000 point bonus, but in May of 2023 the bonus was temporarily increased to 80,000 points.  I'd been thinking about getting the card for a looooong time, and the extra bonus was what got me to make a move.
• Same story with the Amtrak card.  The normal bonus is 20,000 points, and I got the card at a time when it was increased to 40,000 points.
  

How Can I Find Out About All These Sweet, Sweet Checking Account Bonuses When You Didn't Even Bother to Say What Banks They Were From?

This is a fair question! My two sources for finding new account bonuses are:

• Nerd Wallet's best checking accounts page.  Right now the pickings are slim, but it's been a decent source in the past.
  
• Google!  The search "new checking account bonus" gives me a list of both local and online banks with new sign up bonuses.

My Tips n'Tricks for whether I get a new checking account are:

• I only get accounts with banks where I clearly understand what I need to do to get the bonus, the steps aren't too complicated, and there are no account fees to eat into the loot.  
• An example of an offer that I signed up for recently was a $300 bonus if I direct deposited $1,000 within the first 90 days of the account being open, and no fees as long as I keep $500 in the account.  $300 is a nice number and it's easy for me to change my direct deposit and keep $500 in the account.
  
• An example of an offer that I would not get is something that I just pulled up on Google.  The bank says you can get up to $700 for opening a new account, but when I drill into the details, the $700 comes from a series of much smaller bonuses for four different accounts that I have to jump through hoops to get.  I would have to make purchases on my debit card, which is something that I don't normally do.  I'd be better off looking for two more deals like the first example.
  
• I keep these accounts open for a year, just to be "nice".  If I ever found a bank that was easier to deal with than the bank that I've had an easy time dealing with since I was 18, I would consider switching it to my primary checking account.  So far I haven't found that unicorn.
• Use Raukten!  That account that I listed as having a $425 bonus was actually $300 from the bank and $125 from Raukten.
• Checking account bonuses are considered to be interest, so they are taxable.  I'm not sure exactly how much tax I've paid on these bonuses, but it's a tiny percent of our household income, so not much.

What Are Your Future Hacking Plans?

Going forward I plan to live my life and have a good time.  At the end of next year, I'll check and see if the benefits that I'm getting from these cards are greater than the 2% cash back standard.  When/if I get tired of traveling, I will most likely switch to a cash back strategy.

As long as I keep working, I will most likely continue to dabble in the world of checking account sign up bonuses.  Once I no longer have direct deposit then I'll be out of that game.

Where Can I Learn More?

Blogs: Purple and Kyria 

YouTube: I don't have specific videos to recommend, but I've picked up tips from all of these folks: Rob and Allie, RD Guarantee, and Daniel Braun

Congrats on making it to the end of this post!  If you dabble in credit card hacking, what is your biggest coup?