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Credit Card Classes for Dummies: Part 1

Explanation of Sign-up bonus

In the previous post: Dummy Simple to Make Free Travel by Credit Card, I mentioned how to use points to make the hotel free. Some readers reached me to learn more about credit cards. So in the next serval posts, I will explain how to understand a credit card completely.

Let’s open the website of Chase IHG Premier Card. The first thing you need to concern about is the sign-up bonus, which would be the biggest reward you will get from the card.

As you can see, this card offers 140,000 points after $3000 spending in the first 3 months from account opening.

3 months for $3000 spending, means $1000 per month, it is a reasonable requirement, considering grocery shopping, eating, gas, clothes, insurance, and rent. We need to pay for lots of things in our daily life, and the price is inflating every day. So, this is what I said, if we can put essence spending into credit cards, we will earn huge rewards. You’ve already known how valuable these points are.

However, some people are considering multiple cards at the same time. $3000 spending for 1 card is not heavy, but if you are spending for multiple cards to chase the bonus, it could be dangerous. You may fall into overspending behaviors just for credit card bonuses. This is absolutely wrong! Because you are actually decreasing your cash flow by spending too much!

So, this is the No.1 Policy: Just spend what you need on the credit card to get rewards to increase your cash flow!

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