A Steal of a Deal: How I’m Maximizing a Tiny Purchase with Big Credit Card Rewards
Hello, savvy travelers and credit card enthusiasts! As you know, I’m always on the lookout for amazing deals and clever ways to leverage our credit cards to earn maximum rewards, no matter how small the purchase. Today, I stumbled upon something so unexpectedly great that I just had to share it with you all immediately. Are you ready? Buckle up, because we’re diving into the world of small-dollar spending and big-time credit card points!
The Discovery: A Budget-Friendly Find
While browsing online earlier today, I came across a rather appealing deal: the Montana West X Wrangler Small Quilted Wallet Bifold RFID Wallet for women, in Jeans Blue, for the unbelievably low price of $8.00 plus tax and $7.99 shipping. Yes, you read that right – a grand total of approximately $17, depending on your local sales tax. Now, a wallet might not seem like the most exciting travel-related item, but stick with me. The real value here lies in the opportunity to use this purchase to our advantage within the credit card rewards ecosystem.
Moreover, the wallet itself is quite stylish and functional, featuring RFID protection, which is increasingly important for travel security. So, even if you don’t need a new wallet, this could be a great backup or a thoughtful (and very affordable) gift.
Why This Deal Matters: The Power of Small Purchases
At first glance, an $8 wallet might seem insignificant. However, experienced credit card users understand that every purchase, no matter how small, is an opportunity to earn rewards, meet minimum spending requirements, or trigger valuable credit card perks.
First, consider earning rates. I have many credit cards that offer a minimum of 1% cash back or 1x points per dollar spent. While $0.08 or 8 points earned on this purchase might seem paltry, remember that those points add up! Furthermore, many cards offer bonus points on specific categories.
Second, think about minimum spending requirements. Many credit cards offer substantial sign-up bonuses after you spend a certain amount within a certain timeframe. For example, a card might offer 50,000 bonus points after you spend $3,000 in the first three months. While larger purchases certainly help, smaller purchases like this wallet are just as important to reaching those spending goals.
Third, minimum spending requirements also apply to retaining elite status. Some cards may require a minimum spending threshold to maintain certain benefits. Again, every purchase counts.
Fourth, and perhaps most importantly, small purchases like this can be a great way to keep your credit card active. Financial institutions sometimes close inactive accounts, so making regular purchases (and paying them off, of course!) is a great way to prevent this from happening.
My Credit Card Strategy: Maximizing the Rewards
So, how am I planning to leverage this wallet purchase for maximum rewards? Here’s my strategy:
1. Choosing the Right Card: The key is to select the credit card that offers the best return for this particular purchase. In my case, I’ll be using my Chase Freedom Flex card. This card features rotating quarterly bonus categories that earn 5% cash back (or 5x Ultimate Rewards points) on up to $1,500 in combined purchases in those categories each quarter. Check your bonus categories and choose the card accordingly.
2. Utilizing Shopping Portals: Before making any online purchase, I always check if I can earn additional rewards by going through a shopping portal. These portals partner with retailers and offer bonus points or cash back simply for clicking through their site before making a purchase. For example, I can check Rakuten, TopCashback, or other airline or hotel-branded shopping portals to see if any are offering bonuses for the retailer selling the wallet. Even an extra 1% or 2x points can make a difference, especially if you make many small purchases.
3. Meeting Minimum Spending Requirements (If Applicable): As I mentioned earlier, if I’m working towards a minimum spending requirement on a new credit card or to retain elite status, this purchase will contribute to that goal. While $8 is a small amount, it all adds up! Remember, every dollar spent gets you closer to unlocking those valuable bonus points or elite status perks.
4. Stacking Rewards (If Possible): Look for any opportunities to stack rewards. For instance, if the retailer offers its own loyalty program, you might be able to earn points or rewards in addition to your credit card rewards and shopping portal bonuses.
5. Using a Targeted Offer: Check your credit card apps to see if there are any targeted offers for the retailer. These offers could be for additional points or statement credits. If you see a targeted offer, activate it before making the purchase.
Beyond the Points: Thinking Creatively
While earning rewards is a primary goal, this wallet deal also highlights the importance of thinking creatively about how we use our credit cards. Here are a few additional ideas:
* Small Gift Opportunity: As I mentioned before, the wallet could make a thoughtful and affordable gift. If you have a friend or family member who could use a new wallet, this is a great opportunity to give them something practical and stylish without breaking the bank.
* Backup Wallet: Even if you don’t need a new wallet right now, it’s always a good idea to have a backup on hand. This wallet could be kept in your car, luggage, or office for emergencies.
* Teaching Tool: This purchase could be a great opportunity to teach your children or other family members about responsible credit card use and the importance of earning rewards. Show them how you’re maximizing your points with even a small purchase.
* Donation Item: Consider donating the wallet to a local charity or organization. Many charities accept donations of new, unused items, which can then be given to people in need.
Essential Credit Card Best Practices
Of course, it’s crucial to emphasize responsible credit card use when taking advantage of deals like this:
* Always Pay Your Balance in Full: This is the most important rule of credit card use. Paying your balance in full each month avoids interest charges and keeps your credit score healthy.
* Don’t Overspend: It’s easy to get carried away when chasing rewards, but always stay within your budget. Don’t buy things you don’t need just to earn points.
* Track Your Spending: Keep track of your credit card spending so you know how much you’re spending and earning. This will help you stay on budget and ensure you’re maximizing your rewards.
* Monitor Your Credit Report: Regularly check your credit report for any errors or fraudulent activity. You can get a free copy of your credit report from each of the three major credit bureaus once a year.
* Protect Your Information: Be careful when entering your credit card information online. Only shop on secure websites and never share your card details with anyone you don’t trust.
How You Can Find Similar Deals
So, where can you find similar deals that you can leverage with your credit cards? Here are some of my favorite resources:
* Deal Websites and Forums: There are many websites and forums dedicated to finding and sharing deals. Set up alerts for specific keywords or retailers to be notified when new deals are posted.
* Social Media: Follow your favorite retailers and credit card companies on social media. They often announce special deals and promotions on their social media channels.
* Email Newsletters: Sign up for email newsletters from retailers and credit card companies. They often send exclusive deals and offers to their subscribers.
* Credit Card Apps: As mentioned before, regularly check your credit card apps for targeted offers and promotions.
* Price Comparison Websites: Use price comparison websites to find the best deals on the products you’re looking for.
Final Thoughts: It’s All About Strategy
While an $8 wallet might seem insignificant, it highlights the power of strategic credit card use. By choosing the right card, utilizing shopping portals, and meeting minimum spending requirements, we can maximize our rewards on even the smallest purchases.
Remember, the key is to be mindful of your spending, pay your balance in full each month, and stay within your budget. By following these best practices, you can enjoy the benefits of credit card rewards without getting into debt.
Happy travels (and happy shopping!)! I hope this post has inspired you to think creatively about how you can maximize your credit card rewards. Now, if you’ll excuse me, I’m off to buy my $8 wallet! Don’t forget to let me know in the comments if you plan on grabbing one!
