Description: The passage is about capital one 360. The author is going to talk about how to use your credit cards in order to pay your rents, in this case, you might travel for free, but you should realize that it is not for accumulating debt. You can also find some different options for travel goals.
It’s a passion for math Sebby and today we’re going to talk about how to use your credit cards in order to pay your rents, so one thing I want to mention especially to people who are new to this channel, the main goal of this is to generate points in order to travel for free and not to accumulate debt.
So if you are someone who doesn’t pay off their credit cards in full every single month, I probably wouldn’t do this, because you’re going to end up having a debt snowball, we’re going to look at a few options that are currently available as of early 2018, most of these are going to only make sense for sign-up bonuses for some other specific cards.
But the main idea that we’ve talked about for keeper cards and most other cards is that you want to get more value than you’re paying, for example, car gives you two percent and you’re only paying 1% in fees, then that makes a lot of sense, because you’re effectively arbitrage in 1% in value for free another way to think of it.
You can imagine if I offered to give you $2, but only if you gave me $1 back, there are some other considerations though especially once you start considering travel cards, because those are going to be travel points and not cash back, so they’re still going to be valuable.
But if you’re someone who doesn’t travel as much, then the points aren’t useful, if you are new to all of this and you’re not sure what card to get in order to maximize this, I recommend filling out a consultation on our website that way, we can talk about strategy and optimize towards our 5:24 and towards our other travel goals jumping into the options.
The first one we’re going to look at is roomie pay, so roomie pay is interesting, because the program has changed every single month, in the last few months for the March cycle, they charge the first 50 people 0%, the next 150 people 2% and the next hundred people after that 2.5%, everyone else after the first 300 people ended up paying 3 percents.
So if you are someone who has a lot of time, if you work by the computer a lot and you can quickly jump away to do this once a month, then this is a good option, because you can potentially be getting something like 0%, be aware that this is a big community even if you look at our subscribers.
There are a lot of people, 50 people is a very small amount of people who are going to get this offer and again even for March, I think it took about one to two minutes before the zero-percent group basically filled up, if you compare the numbers and I realize that we haven’t talked about the other numbers.
But the only two competitive groups are going to be the zero percent as well as the two percents, this means that you need to be in the first 50, with the first 150, after that, the first 200 people every single month for the third group, it’s not competitive, because for plastic, you’re also paying the same 2.5 percent, but plastic doesn’t involve you racing in order to get that spot.
The reason why this is an interesting program is that next month in April and May, in June, the program can completely change, they end up having more 0%, they have less, they don’t have a zero percent at all, we don’t know some pros of rumi pay is that their program seems to be improving.
So for January, if you look at the checks, they were handwritten and most of them ended up being late, another big advantage of rumi pay is that you can do peer-to-peer transactions unlike the other options which are targeted towards, you paying a company, one thing to be aware of Doug with that is that I do see Visa as well as American Express eventually jumping in, because that’s what they have done with plastic.
So initially, you could do American Express, you could do Visa for much anything and then afterwards, they saw how many transactions were going through, they jumped in and there were no peer-to-peer transactions, but some other categories are fine.
If you do fall into this situation, one thing you might want to consider doing is becoming the master tenant yourself or finding out a way for you to be the one that pays the company or the original landlord who typically ends up being a company of some sort.
The main reason is that your minimum spend is going to be a lot higher, it’s an apartment or four different rooms, everyone’s paying fifteen hundred instead of you paying the fifteen hundred, if you have your other roommates pay you and then you pay that six thousand, that’s a minimum spend there.
So this might not be an option for you, so you might want to skip this part and skip ahead a bit more, I’ll probably leave a time stamp to where you want to go to, but if you can pay directly, it might make sense, but you have to crunch the numbers when Payne directly.
It ends up either being a specific percentage or it ends up being a specific number and I’ve seen both, if it’s a percentage, it’s easy to compare, because you basically want to pick the lowest percentage, if you can pay directly at 1%, then that’s probably going to be the best bet unless you end up falling into that zero percent zone.
On the other hand, the other two options make significantly more sense, if it is a dollar amount, you need to calculate it, if they want to charge you fifty dollars and your rent is five thousand dollars, then that’s one percent and you can do the math yourself.
I’m not specifically pointing to that five thousand dollar number, you need to see what makes sense for you and whether the math adds up.
The final option we’re going to look at is plastic and here you’re going to pay a fixed two point five percent of fees before considering any other promotions one thing to be aware of though for plastic is that you can’t do any peer-to-peer transactions for Visa or for American Express in my experience.
When I was renting from old Chinese grandmother types, they still had a trust in place, so I wasn’t paying them directly, I was paying the trust, if you want to try out plastic, we have a referral link where you’re going to get five hundred dollars and fee three dollars after doing a five hundred dollar transaction be aware though that, it doesn’t have to be one specific transaction, it could be multiple to add up to five hundred.
So pick the option that makes the most sense for you, but if you are going to use it, if it is the most logical option, then it’s an easy way to support our channel, if you are going through any of these options and assuming that your rent is due on the first, then you’ll probably want to process about a twentieth way.
You make sure that the money can get there in time for most people, I think the logical flow is going to be to try broomy, pay first to see whether they can get the 0%, after that, you want to pick the cheapest option, so whether it’s paying directly, whether it’s roomie, pay a 2% or whether it’s plastic at 2.5% and again for all of this minimum spends probably make the most sense.
If you are not looking to hit minimum spends, the city double cash might make sense especially if you get that 0%, the mxs PG card, if you value the SPG points high enough and there are a lot of different options, but you want to make sure that you’re getting positive expected value.
So you’re paying less, then you’re getting more back, the reason why I wanted to do this video is that there was a lot of uncertainty around this and for a lot of people, they don’t realize that they can pay their rent using their credit card.
It’s an easy way to hit minimum spends, so I hope that was helpful and let me know if you have any questions, my question for you is are you using your rent in order to hit minimum spend? Let me know in the comments down below, if you like this video, give it a thumbs up, it helps us out and if you know anyone else who’d benefit from what we talked about, feel free to share this video with them, because it’s probably going to help them out, hopefully, you like it, see you next time.