Should I use credit card balance transfer offer or take ThankYou points?
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Should I use credit card balance transfer offer or take ThankYou points?
Posted: Tue Jul 25, 2006 3:55 pm
It's a fine card, but the 2% ThankYou points for the first year aren't as good as the 0% BT offer for the first year. You can't have both--you'd either have to take the BT offer and not use the card or NOT take the BT offer and use the card.
In my situation, the 0% BT will earn me 5% for, say, 90% of the limit of the card in the first year, riskfree. $10,000 limit, $500 interest earned roughly, plus $100 for the first purchase. (Use it the day you get the card at a grocery store, pay it back at once, then do the BT when your payment shows online.)
If you spend a lot on purchases each year and DO NOT have a similar card, you might do better simply using it for the rewards and skipipng the BT. I have some 1.5% cash rebate card, though. I figure the gift cards at 80% at face value (because you can get plenty through dealpass at 20% off face). So if I buy $5000 on the card and get 10000 points, that translates to a $100 gift card worth $80 net, roughly 1.6% with some hassles thrown in. Not enough of an advantage for me to give up the 5% cash return!
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
Last edited by Polonius on Tue Jul 25, 2006 4:34 pm; edited 1 time in total
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Guest: XeroK00L
Credit Expert (100+ Posts)
Posted: Tue Jul 25, 2006 4:28 pm
Not all gift cards are created equal. No one is forcing you to redeem for some retail store gift cards that you can get for cheap elsewhere. IMHO the best gift cards to redeem for, if you insist on redeeming for gift cards, are gas cards (everyone drives, right?). The last time I checked, there's no discount on any gas card anywhere, period. So by redeeming TY points for gas cards and using them, you lose just 5% of the face value due to the lost opportunity to use a credit card that gives 5% back.
And then again, there are always the two other options detailed above that will give you even better value for the points.
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Guest: quiznut1
Credit Expert (100+ Posts)
Posted: Sun Jul 23, 2006 6:51 pm
Quote:
If you purchase the gift cards from the ty network...it really isnt 2% since you will lose the rebate that you normally get for purchases........if you use it to pay off a student loan...you get the full cash value...so all of you college students...
Well, I feel you are only restricted in the fact that you could use cash back for anything you want. Gift cards of course you are locked into the particular merchant. However, being there is a Super Target close to my school, I know I will be spending money there for groceries so it will be fine.
Oh, and to the comment earlier, I was saying gift cards were indeed the best way to redeem your points, since 5,000 points equals a $50 gift card, as opposed to a $250 cash rebate at 38,000 points. You'd be able to get almost 8 $50 gift cards with 38,000 points, and 8 x $50 = $400.
Anyway, like I said, my goal is to use this card for 1 year, then hopefully ditch it for a better offer. I don't have that long of a credit history, and to guarantee a 2% return, even if it's in gift cards for a full year, I'll take it.
Any other comments on this offer and/or my decision to apply for this card?
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Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Sun Jul 23, 2006 10:29 pm
I dont think the gift card are better than getting cash back (if you can get that with the student loan rebate) with this card....but as discussed in the other thread on 2% cards...this offer is probably the safest bet for a card for 1 year.....you arent really getting 2% back when you buy the gift cards through ty network....if you use your cc at supertarget, you would be getting 5% back....that is lost when you use your reward for the gc's....one of the reasons that the dividend select is the better option (get cash rebate) than other cards that give points to the ty network...
100 bucks earned with the div. select....spend at target and getting 5 more bucks back=105 bucks
use 10,000 points and redeem for a gift card is worth 100 bucks.
It's even worse comparison if you are able to buy gift cards at a discount for 20% through another program....
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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Jul 24, 2006 9:09 am
Citibank has many sorts of gift cards/certificates available. I cashed in $700 of rewards for Amazon.com gift certificates and used them all to buy a new Intel-based Apple iMac for my wife this month! (I know Amazon has its own 3%-back card handled through Chase, but I was turned down for it earlier this year.)
Quote:
The best way to redeem points on this card for me is through gift cards
I thought that too. But I've been reading recently that the TY Network has an absolutely phenomenal travel department handled by an outside party that actually sames you a lot of money for tickets, car rentals, and hotels. Fat Wallet has a thread about this recently and I was amazed at some of the savings reported. I saw nothing on the TY Network site to lead me to think the travel service was anything special, but I'll be checking that out the next time I book a trip!
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: XeroK00L
Credit Expert (100+ Posts)
Posted: Mon Jul 24, 2006 12:26 pm
Quote:
Citibank has many sorts of gift cards/certificates available. I cashed in $700 of rewards for Amazon.com gift certificates and used them all to buy a new Intel-based Apple iMac for my wife this month! (I know Amazon has its own 3%-back card handled through Chase, but I was turned down for it earlier this year.)
Quote:
The best way to redeem points on this card for me is through gift cards
I thought that too. But I've been reading recently that the TY Network has an absolutely phenomenal travel department handled by an outside party that actually sames you a lot of money for tickets, car rentals, and hotels. Fat Wallet has a thread about this recently and I was amazed at some of the savings reported. I saw nothing on the TY Network site to lead me to think the travel service was anything special, but I'll be checking that out the next time I book a trip!
Yup, the point-to-ticket value rate from TY Network is absolutely phenomenal. For this reason alone I would highly recommend this card with the 2% promotion.
Also don't forget that with the student loan rebate trick you can get $25 cash back with 2,500 TY points. You just need some guts.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Should I use credit card balance transfer offer or take ThankYou points?
Posted: Tue Jul 25, 2006 3:55 pm
It's a fine card, but the 2% ThankYou points for the first year aren't as good as the 0% BT offer for the first year. You can't have both--you'd either have to take the BT offer and not use the card or NOT take the BT offer and use the card.
In my situation, the 0% BT will earn me 5% for, say, 90% of the limit of the card in the first year, riskfree. $10,000 limit, $500 interest earned roughly, plus $100 for the first purchase. (Use it the day you get the card at a grocery store, pay it back at once, then do the BT when your payment shows online.)
If you spend a lot on purchases each year and DO NOT have a similar card, you might do better simply using it for the rewards and skipipng the BT. I have some 1.5% cash rebate card, though. I figure the gift cards at 80% at face value (because you can get plenty through dealpass at 20% off face). So if I buy $5000 on the card and get 10000 points, that translates to a $100 gift card worth $80 net, roughly 1.6% with some hassles thrown in. Not enough of an advantage for me to give up the 5% cash return!
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
Last edited by Polonius on Tue Jul 25, 2006 4:34 pm; edited 1 time in total
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: XeroK00L
Credit Expert (100+ Posts)
Posted: Tue Jul 25, 2006 4:28 pm
Not all gift cards are created equal. No one is forcing you to redeem for some retail store gift cards that you can get for cheap elsewhere. IMHO the best gift cards to redeem for, if you insist on redeeming for gift cards, are gas cards (everyone drives, right?). The last time I checked, there's no discount on any gas card anywhere, period. So by redeeming TY points for gas cards and using them, you lose just 5% of the face value due to the lost opportunity to use a credit card that gives 5% back.
And then again, there are always the two other options detailed above that will give you even better value for the points.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: quiznut1
Credit Expert (100+ Posts)
Posted: Sun Jul 23, 2006 6:51 pm
Quote:
If you purchase the gift cards from the ty network...it really isnt 2% since you will lose the rebate that you normally get for purchases........if you use it to pay off a student loan...you get the full cash value...so all of you college students...
Well, I feel you are only restricted in the fact that you could use cash back for anything you want. Gift cards of course you are locked into the particular merchant. However, being there is a Super Target close to my school, I know I will be spending money there for groceries so it will be fine.
Oh, and to the comment earlier, I was saying gift cards were indeed the best way to redeem your points, since 5,000 points equals a $50 gift card, as opposed to a $250 cash rebate at 38,000 points. You'd be able to get almost 8 $50 gift cards with 38,000 points, and 8 x $50 = $400.
Anyway, like I said, my goal is to use this card for 1 year, then hopefully ditch it for a better offer. I don't have that long of a credit history, and to guarantee a 2% return, even if it's in gift cards for a full year, I'll take it.
Any other comments on this offer and/or my decision to apply for this card?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Sun Jul 23, 2006 10:29 pm
I dont think the gift card are better than getting cash back (if you can get that with the student loan rebate) with this card....but as discussed in the other thread on 2% cards...this offer is probably the safest bet for a card for 1 year.....you arent really getting 2% back when you buy the gift cards through ty network....if you use your cc at supertarget, you would be getting 5% back....that is lost when you use your reward for the gc's....one of the reasons that the dividend select is the better option (get cash rebate) than other cards that give points to the ty network...
100 bucks earned with the div. select....spend at target and getting 5 more bucks back=105 bucks
use 10,000 points and redeem for a gift card is worth 100 bucks.
It's even worse comparison if you are able to buy gift cards at a discount for 20% through another program....
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Jul 24, 2006 9:09 am
Citibank has many sorts of gift cards/certificates available. I cashed in $700 of rewards for Amazon.com gift certificates and used them all to buy a new Intel-based Apple iMac for my wife this month! (I know Amazon has its own 3%-back card handled through Chase, but I was turned down for it earlier this year.)
Quote:
The best way to redeem points on this card for me is through gift cards
I thought that too. But I've been reading recently that the TY Network has an absolutely phenomenal travel department handled by an outside party that actually sames you a lot of money for tickets, car rentals, and hotels. Fat Wallet has a thread about this recently and I was amazed at some of the savings reported. I saw nothing on the TY Network site to lead me to think the travel service was anything special, but I'll be checking that out the next time I book a trip!
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: XeroK00L
Credit Expert (100+ Posts)
Posted: Mon Jul 24, 2006 12:26 pm
Quote:
Citibank has many sorts of gift cards/certificates available. I cashed in $700 of rewards for Amazon.com gift certificates and used them all to buy a new Intel-based Apple iMac for my wife this month! (I know Amazon has its own 3%-back card handled through Chase, but I was turned down for it earlier this year.)
Quote:
The best way to redeem points on this card for me is through gift cards
I thought that too. But I've been reading recently that the TY Network has an absolutely phenomenal travel department handled by an outside party that actually sames you a lot of money for tickets, car rentals, and hotels. Fat Wallet has a thread about this recently and I was amazed at some of the savings reported. I saw nothing on the TY Network site to lead me to think the travel service was anything special, but I'll be checking that out the next time I book a trip!
Yup, the point-to-ticket value rate from TY Network is absolutely phenomenal. For this reason alone I would highly recommend this card with the 2% promotion.
Also don't forget that with the student loan rebate trick you can get $25 cash back with 2,500 TY points. You just need some guts.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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