I'm fascinated by this kind of thing. How many points can you make just by spending with credit cards, and how far do those points go? For the sake of this blog post I'm not going to count the sign up bonuses you may get for signing up for credit cards. I'm going to use numbers from the Bureau of Labor Statistics on what the average person spends per year. The BLS says that number is $51,933 per year.
Figuring that out was easy. Now the hard part begins. There are a countless number of ways to earn miles and points - from credit cards to shopping portals and dining rewards. So, for simpleton's sake, I will only use two cards. Two cards that I have: the Chase Sapphire Preferred and the Barclaycard Arrival Plus.
The CSP gets at least one point per dollar on everything, except travel, and dining where you get two points per dollar. The Arrival Plus gets a flat two points per dollar on everything. Now that we know that, let's figure out how many points you can potentially earn in a year.
Of the $51,933:
-How to Make an Extra $300 Every Year
-VIP Perks You Didn't Know You Had
-Will Credit Card Churning Hurt My Credit Score?
What does this add up to?
When all said and done we spent $32,399 with credit cards. As for points, it breaks down like this:
This is a hypothetical situation I came up with. It's possible this scenario doesn't fit your spending habits at all. It also doesn't count the extras you could earn, like through an online shopping portal, or dining rewards. Or, my personal favorite, using my Chase Freedom card to maximize the 5% cash back bonuses they offer, then transferring those points to my CSP account.
What this scenario does, however, is give you a rough idea of the points you could rake in through credit card rewards. Seems worth it to me.
Do you think credit card rewards are worth earning?