Reading Finance Punk, you have been told it is possible to travel for free and make tens of thousands of dollars off of big banks. But how?
Make $5,000 this month:
First, don’t do this. “Huh?” – You’re probably saying.
Although this can be done, it is risky and there is huge potential for mistakes that will put you into debt or cost you money. There are better ways to do this than going all in the first month.
Since we are all on the same page of not doing it – here’s how to do it:
Assuming you have a little credit history, haven’t opened more than a couple cards in the last 2 years, a score over 700, and an income of $30k or more, open an f-ton of credit cards.
Open eight credit cards today. These following eight credit cards, in this order, as close to simultaneously as you can:
- Chase Sapphire Reserve in branch 100k for 4k spend – $450 annual fee
- Chase Sapphire Preferred 50k + 5k for 4k spend
- Amex PRG 50k for 2k spend
- Amex SPG 35K for 5K spend
- Amex Platinum 75K for 5k spend – $450 annual fee
- Citi Premier 50k for 3k spend
- Barclaycard Arrival+ 50k for 3k spend
- CapitalOne Venture 40k for 3k spend
“Why the above cards in that order, Finance Punk?” – Because, you have to follow the rules of each bank.
The first two cards are from Chase, who will only approve 2 cards per 30 days and will only approve most of their cards if you haven’t opened 5 or more cards in the last 24 months – this has you opening 8 in one day. Hint, 8 in 1 day is more than 5 in 730 days.
American express is pretty lenient, but, they do have a 2 credit card per 90 day policy and a 4-5 credit card max. Luckily, 2 of these are charge cards and don’t count towards those limits.
Citi will only approve you for 1 card in 8 days and 2 cards in 65 days. So, we can only do one today.
Barclaycard can be sensitive to inquiries on your credit report but, if you have a good credit score and none of their cards, they will most likely approve you.
CapitalOne is similar to Barclaycard and, on top of that, they will pull your report from all three credit bureaus. Since your report is going to be clean except for the 7 cards you applied for prior, today, they will most likely approve you.
Spend $30,000 within 3 months:
You have 8 cards coming in the next couple weeks; now what?
First, you are going to get charged $900 in annual fees because of the American Express Platinum and Chase Sapphire Reserve cards you opened. No big deal because you will get $400 in airline credit from Amex Platinum and $600 in travel credit from CSR over the first 12 months (once now and once after January 1st).
Hey, you already made $100 depending on your accounting.
Now you have to be a real baller and spend $30k within 3 months to get all the bonuses…
OR be a real Finance Punk and spend $30k without spending $30k.
You need to manufacture spend for the majority of that $30K.
Manufactured spend – buying cash or cash equivalents with a credit card to generate rewards or paying for things with a credit card that normally don’t accept credit cards as payment (mortgage, car loans, student loans).
- Buy visa gift cards with a credit card and then buy a money order and then deposit that money order into your bank account and then pay off the credit card.
- Get an American Express Serve card and then buy visa gift cards with a credit card and then load the visa gift cards into the Serve account and then pay off the credit card.
- Buy American Express Gift Cards and then add them to Venmo and then pay a trusted friend with venmo and then have the friend give you the money and then put that into your bank account and then pay off the credit card.
- Use a payment service like Plastiq to pay for loans for a ~3% fee (gross)
Seems complicated, huh?
On $30k in a few months, it is complicated and risky and not worth it.
But, here is how to do it anyway because the name of the site is Finance Punk not Finance Upstanding Citizen:
Most of the above VGCs were purchased at Walmart and then turned into money orders at Walmart. Since this $30k is over 5 banks, it is more like $6k per bank. Since it doesn’t have to be done any faster than 3 months, it is less than $2k per bank, per month (since you will have regular spend, it is less than that).
-No risk in the banks eyes if someone who reported making $30K a year is spending $2k a month.
However, the $10k a month you are depositing into your bank account via anonymous money orders does not look good (Hint, it looks like you are laundering money). Lucky for me, I use a business bank account so depositing money orders makes sense.
You are in the 1% and you racked up a $30k credit card bill this month because that is normal for you or you manufactured that $30k spend because you are a finance punk. Either way, you did it!
What do I do with 500,000 credit card points?
After all of the bonuses and points from over $30k of spend, you will have 500,000 points! Convert that to cash and you will have made $5,000 this month (if you made the spend within a month)!
But that didn’t happen because we didn’t do this because this was just for entertainment purposes and I am going to tell you the right way to go about making tens of thousands of dollars off of big banks in coming posts.
Once you do start generating large amounts of credit card points, using further posts that provide good information on maximizing rewards (not this crazy, all in, Finance Punk approach), do not convert them all to cash for $0.01 per point. There is so much more value to be had:
- The ~100k points from Barclaycard and CapitalOne are only worth $0.01 per point so go ahead and convert that to $1,000 travel statement credit
- The remaining ~400k points from Chase, American Express, and Citi can be worth over $0.02 per point ($8,000) depending on how you use them and I will tell you how to do so in coming posts.