At FTU in DC last weekend, I presented “You can still earn 5X everywhere.”  Many of the tips I presented involved reload cards, gift cards, and Bluebird cards, but I also showed how you can earn 5X almost everywhere without gift cards.  In this three part series, I’ll show you how.

The cards shown above on the left earn Chase’s Ultimate Rewards points.  The cards on the right earn Citibank’s Thankyou points.  In this post, I’ll focus on Ultimate Rewards.  The next post will cover the ThankYou cards and I’ll finish up with a post about what to do with charges that don’t fit into the above buckets.

Ultimate Rewards

Ultimate Rewards points are my favorite form of currency.  Really.  All you need is one of Chase’s premium cards (e.g. Sapphire Preferred, Ink Bold, Ink Plus) to unlock Ultimate Rewards full potential.  For a frequent traveler, the points are better than cash.  If you want or need cash, fine.  Ultimate Rewards points can be exchanged for cash with a value of 1 cent per point.  Or, book travel through the Ultimate Rewards website and get 1.25 cents per point value.  Better yet, transfer points to any of numerous partners and you can often get far more value.

Additional transfer partners not shown above include Marriott and Priority Club.

Some of the best redemption options for Ultimate Rewards points are via partners.  Here are a few examples:

• Transfer to United Airlines and redeem for international business or first class travel on Star Alliance flights.  Redemption value varies widely but you can usually expect to get at least 3 cents per point value and often much more (if you find saver level availability).
• Transfer to Southwest Airlines and redeem for “Wanna Getaway” fares.  For these fares, you’ll get 1.67 cents per point value.
• Transfer to Hyatt for luxury stays.  Hyatt’s award chart tops out at only 22,000 points per night for their most expensive properties.  When redeeming for expensive hotel nights (think $500 and up) you can expect to get over 2 cents per point value.
• Transfer to British Airways and redeem for short non-stop flights on BA partner airlines (American, Alaska, Aer Lingus, LAN, etc.).  One great example that I’ve taken advantage of is to use BA Avios to book American Airlines non stop from Detroit to NYC.  Non-stop round-trip flights are usually $700 and up for weekday travel, but I was able to book the same for only 9000 points.  That’s a value of over 7.7 cents per point!
• Transfer to Amtrak and redeem for bedrooms or special routes.  With Amtrak’s special routes, they charge only 1500 points each way.  I’ve used this deal several times to ride the Wolverine train from Ann Arbor to Chicago.  Prices fluctuate widely, but in my experience I usually get over 3.5 cents per point value.  You can also do well by using points to book otherwise very expensive bedrooms for long-haul routes.

Sure, Starwood points are arguably more valuable per-point than Ultimate Rewards, but Ultimate Rewards points are much easier to earn and faster to transfer to partners.

5X almost everywhere

By filling your wallet with the right assortment of cards, you can earn 5 points per dollar almost everywhere you shop day to day.  Here are the Chase Ultimate Rewards cards that will help you get there:

Chase Ink 5X

I’ve said many times that the Chase Ink Bold (and its twin the Ink Plus) is my favorite card.  I even wrote a secure message to Chase to profess my love.  My feelings haven’t changed.

Chase Ink cards offer 5 points per dollar for office supply purchases, cell phone, landline, and cable.  Just by using an Ink card to pay your cell phone, landline, and cable bills you’ll rack up thousands of points.  And, of course, don’t forget to use the card whenever you shop at an office supply store.  Since Staples, OfficeMax, and Office Depot regularly offer specials that I blog about (such as Free after Rebate items and other lucrative discounts), the Ink card provides many ways to rack up points!

There are multiple versions of Ink cards: Ink Bold, Ink Plus, Ink Cash, and Ink Classic.  The Ink Bold and Ink Plus cards are premium cards with high signup bonuses (50K!) and $95 annual fees that kick in after the first year.  These premium cards award 5X for up to $50K per year of spend.  The Ink Cash and Ink Classic are no-fee cards with smaller sign-up bonuses.  These cards award 5X for up to $25K per year of spend.  For details of how these cards differ, please see “Preparing for Miles“. 

All of the Ink cards are business cards.  Yes, you do need a business to qualify.  If you have a new business (rental property, buy/sell things, consultant, blog author, whatever…) you do not need to lie about your business income, even if your income to-date is zero.  Hopefully you have other income or assets that you can also list to help assure Chase that you’re credit-worthy!  For more information, please see “How to sign up for the Ink Bold (or Ink Plus).”  If you have multiple businesses, you can get multiple Ink cards and you should get the signup bonus for each one (at least, that was my experience).

Chase Sapphire Preferred 4.28X

If you had to settle for just one rewards credit card, for most frequent travelers I recommend the Sapphire Preferred.  While it doesn’t offer any 5X categories, it does offer 2X for all restaurant and travel purchases, and it offers a 7% annual dividend on all points earned.  So, regular earnings are really 1.07X, and 2X earnings are really 2.14X.  With no foreign transaction fees, this is a great card to have in your wallet when dining or travelling (although it does lack a PIN at the time of this writing).  Of course, the card offers a terrific 40K sign-up bonus, so that doesn’t hurt either!

The trick for getting nearly 5X when using the card for travel expenses is to take advantage of the Ultimate Rewards Mall.  By initiating your online shopping through Chase’s Ultimate Rewards Mall, you can earn extra points above and beyond those earned by your credit card.  So, when booking travel, go through the Ultimate Rewards Mall to a site like Travelocity (which currently offers 2 bonus points per dollar) and pay for your travel with your Sapphire Preferred card.  With 2 bonus points from the Ultimate Rewards Mall and 2X earnings for travel with the Sapphire Preferred, you will earn 4 points per dollar.  Then, if you factor in the Sapphire Preferred card’s annual 7% dividend, you would earn 4.28 points per dollar.  It’s not 5X, but its awfully close!

Chase Freedom 5X to 5.5X

The final piece of the puzzle is the no-fee Chase Freedom card which offers 5X in rotating categories each quarter.  For example, this quarter, from April through June, the Freedom card offers 5X for restaurants, movie theaters, and Lowe’s.  Note that 5X earnings are limited to $1500 in spend each quarter.

If you have a Chase checking account, you will also qualify for a 10% annual bonus on points earned (see “The new king of the Ultimate Rewards Mall“).  This means that regular spend earns 1.1X, and 5X spend becomes 5.5X!

Wrap Up

The cards detailed above give multiple opportunities to earn 5 very valuable Ultimate Rewards points per dollar across many types of transactions: office supplies, cell phone, landline, cable, travel, and rotating categories.  In general, if you have competing cards that earn 5X for the same categories, I’d recommend going with the card that earns Ultimate Rewards points whenever feasible.

In the next post in this series I’ll show how it’s possible to earn 5X ThankYou points across many other categories of spend.  And, I’ll show you how to make the most of those points.

More details about the cards shown above,and signup links for each, can be found on either of these pages:

• Best Credit Card Offers
• Preparing for Miles

Caution

The purpose of this series of posts is to show how it may be possible to earn 5 points per dollar almost everywhere, but that does not mean that you should.  Not everyone can (or should) get all of the cards I’ve listed.  While it is true that between my wife and I we have all of the listed cards, this is not meant to be personalized advice for you.  Is this right for you?  Only you can decide.  And, as always, I do not recommend signing up for rewards credit cards unless you always pay your balance in full every month.  Otherwise the cost of the interest payments will far exceed the benefit of points earned.

Secure message regarding card ending in 1226:

Dear Ink Plus,

I must say, I am flattered by your recent offer.  Words can’t describe how tempted I am!  You are, clearly, just as desirable in every way as your twin sister, Ink Bold.  I am intrigued, too, by your suggestion that we could try out our relationship for a while. As you said, six months is plenty of time to see how much interest we have in each other. 

Things were different with your twin.  When we began dating, she boldly declared that a relationship is not worthwhile if it does not pay off immediately.  That is where you two differ the most.  I took a chance with her and my life has been incredibly rewarding as a result.  Despite your differences, I have no doubt that the same would be true with you.

For now, I must turn down your offer.  It’s too soon for us, Ink Plus, especially considering my recent flirtations with others: Discover, Forward, Hilton, and Cash Plus. Its not you, but the pull of Ink Bold and these others that keeps me from saying yes.

You asked me to give you an answer before the end of the year, so this is it.  I beg of you, though, to please give me more time.  I know that in a month or two memories of my flirtations will fade, and then I’ll be ready.  Will you accept me then?

Yours truly,

FM

Related archive message dated 05/04/2012: Let’s just be friends

A couple of weeks ago I presented at Frequent Traveler University in Los Angeles.  One of the topics I covered was how to earn 5 points per dollar (or more) on all spend.  We started with a moment of silence for the end of Vanilla Reload cards at Office Depot (see “Office Depot discontinues Vanilla Reload cards“).  We then went on to discuss a number of opportunities that still exist.  Below is a brief outline…

1. Buy gift cards and use them

Many grocery stores, drug stores, gas stations, and office supply stores sell gift cards.  The trick is to use a credit card that offers 5X or more at one of these locations to buy gift cards that you can then use elsewhere.  See “Best Category Bonuses” to find credit cards that offer the best bonuses.

Example 1: Suppose you are about to make a big purchase at Lowes.  You can always stop by a different store first to buy Lowes gift cards (usually with no fee and no sales tax) and then use those gift cards at Lowes.  The advantage is that, depending on which card you use, you may earn 5 or 6 points per dollar when buying the gift card compared to 1 point per dollar if you made the purchase directly at Lowes.

Example 2: Go to a store in which your credit card earns a high multiple and buy a bank gift card (e.g. Visa, MasterCard, or American Express).  Use that gift card for all purchases in which you would normally have earned only 1 point per dollar.  Watch out for fees, though!  Most bank gift cards have very high fees as a percent of their overall value.  For example, most $100 cards have $5.95 fees.  That means you would be paying 6% in fees in order to earn 5 points per dollar.  It’s not worth it!  Instead, look for $500 cards with $4.95 fees.  Losing just 1% in order to earn 5 points per dollar is often a great deal.

Caution: When you buy merchandise with a gift card, you do not get the benefits such as extended warranty and purchase protection that many credit cards offer automatically.  Use gift cards only to buy things where you are sure those protections don’t matter. 

2. Buy reload cards

Prepaid reload cards are more versatile than gift cards because they can be used, indirectly, to pay bills that can’t usually be paid by credit card.  The way they work is that they come with a PIN number that is used online to load the money from the reload card into something else.  The “something else” could be your Bluebird account, your PayPal account, or one of many prepaid reloadable debit cards.  For more information, please see “The reload game is on.”  Currently, reload cards are no longer available at office supply stores, but can be found elsewhere.  As with gift cards, the trick is to use a card that earns a high multiple at a place that sells reload cards (see “Best Category Bonuses“).

3. Buy reload cards with bank gift cards

This is a combination of options 1 and 2, above.  The idea is to buy bank gift cards at a place that offers you the best points per dollar, then use that gift card to buy reload cards at a different store.  While I and many others have had success with this, it doesn’t always work. Some stores that sell reload cards won’t allow gift cards as a form of payment.  Note also that you now have two fees involved: there is the initial fee for buying the bank gift card (e.g. $4.95 for a $500 card) and then the fee for buying a reload card (e.g. $3.95 or $4.95 for a $500 card).  Make sure these fees are worth it before doing this!

4. Load a Target Amex card with bank gift cards

Full details of this technique can be found here: The 5X everywhere backup plan

5. Load an American Express Campus Edition card

The American Express Campus Edition prepaid card can be loaded at the register at Barnes & Noble campus bookstores.  Find a card that offers a high multiple at bookstores, and you can earn points by reloading this card.  Yes, it works!  More details can be found here: American Express Campus Edition

Caution

5X Everywhere techniques often involve some risk and hassle.  Please see my post “5X dangers and headaches.”

Discussion

As shown above, there are quite a few ways to continue to earn “5X everywhere”.  In my talk, I described ways to take things ever further, but I’ll leave those details for another day and venue.  Is it worth the hassle?  That really depends on your tolerance for this stuff.  Yes, its possible to earn far more points with these techniques than without them, but at a cost of time and sometimes great frustration.  I’ll follow up soon with a post about putting 5X into perspective.

The Mayan calendar ends on December 21 2012.  Many believe that the end of the Mayan calendar signifies the end of the world as we know it.  Is it possible, though, that the real meaning is the end of “5X everywhere”? 

OK, settle down, I made the title of this post purposely provocative in order to get your attention.  I don’t really think that “5X everywhere” is coming to an end, but rumors are spreading and it would be irresponsible of me not to warn you of the possibility…

Background

“5X everywhere” is a technique for earning 5 points per dollar for all spend (see   “One card to rule them all“).  This technique relied on, among other things, being able to buy Vanilla Reload cards at Office Depot.  Some believed that “5X everywhere” was dead when Office Depot stopped carrying Vanilla Reload cards (see “Office Depot discontinues Vanilla Reload cards“).  Many of us, though, continue to earn 5X everywhere the easy way (see “Almost too good to be true“) or the hard way (see “The reload game is on“).  Recent rumors, though, make me wonder if even these techniques are near an end…

The rumor

A couple of readers have recently and independently reported the same story:  when they went to Office Depot to buy gift cards with their Chase business card, the cashier told them that Chase has stopped awarding 5X for gift card purchases.

Is this true?  I know that on my most recent statement I still saw 5X for gift card purchases.  Is it even possible for Chase to distinguish regular purchases from gift card purchases?  I don’t know.  What if you buy gift cards and a pack of gum at once?  Will Chase somehow see the details of the transaction and be able to award 5X for the gum, but not for the rest?  It seems unlikely to me.

Why spread a rumor?

You might wonder why I would bother reporting this with so little information either way.  Normally, I wouldn’t.  But this feels similar to something that happened before where rumors eventually evolved into fact…

Vanilla Stories

I first wrote about Vanilla Reload cards in May 2012 in the post “One card to rule them all.”  A few days later, I received an email from a reader who was told by an Office Depot manager that Office Depot would no longer carry Vanilla Reload cards.  Naturally, I was worried about this, but soon found that it wasn’t true.  At least, it wasn’t true nationwide.  Office Depot kept selling them. 

A week later, I received a very similar email.  The gist was the same: Office Depot would stop selling Vanilla Reload cards.  And then, a week or two later, I received another email just like it.  About once a week I heard the same story.  But Office Depot kept selling the cards.  In fact, in some cases, the same store that reported the end of Vanilla would restock and continue selling them!

In November, things changed.  The rate at which I received these reports spiked up suddenly.  It was time to take the reports seriously.  So I called a number of Office Depot stores and heard the same story.  The end had come for real.

From rumor to fact

So, the Vanilla rumor evolved from fiction to fact in a period of 6 months.  What about this new one?  Will it pan out?  Or, is there just a single misinformed cashier spreading this misinformation?

Reader input

Have you recently bought gift cards at Office Depot with your Chase business card?  Did you hear anything like this from the cashier?  Did you receive the full 5X points on your statement?  Unfortunately, its not easy to check.  See “Chase Ink: Check your X” for details.

Last month I posted a rumor that said the sign-up offer for the Ink Plus was going to improve (see “Ink Plus better offer is on its way“). As of last night, the rumor seems to have been proven correct. On Chase’s Ink signup page, you’ll see that they now offer 50K points after $5K spend instead of $10K spend as with the previous offer. This is true for both the Ink Plus and the Ink Bold. The Ink Classic and Ink Cash spend requirements also dropped (from $5K to $3K), but so did the point bonus (from 25K to 20K).

I expect that these new offers will be available for a while. Maybe a month, or maybe until the end of the year. Really, this is just my best guess based on what little I know (which is really pretty little).

As of right now, the new offers are only available directly through Chase. Affiliate links available to bloggers (like me) still show the old offers (which could be advantageous for those who want the 25K signup offers for the Ink Cash or Ink Classic). I expect that blogger links will get updated sometime next week. While, for many people, that’s not a good reason to wait before applying, there is a reason you might want to wait a day or two, at least. Several people in the comments of this Million Mile Secrets post are reporting that they go through the entire application process only to be told in the end that the offer is no longer available. It sounds like Chase has some technical issues to clear up.

For those who signed up for the Ink Bold or Ink Plus recently and want the better offer, I’d suggest calling Chase and referring to the new public offer (which can be found here). Ask them if you can be matched to that offer.  It seems to be hit or miss whether Chase is allowing the bump to the new offer.

See also: How to sign up for the Ink Bold (or Ink Plus)

Heard it from a friend who heard it from a friend who… – REO Speedwagon

I have an unconfirmed report from a person with a friend “in the know” that on November 11, the Ink Plus signup offer will improve.  Reportedly, the spend requirement to get 50,000 points will drop from the current $10K in 3 months to only $5K.  My source thinks that the Ink Bold offer may improve as well.

Reason to believe

A couple of weeks ago, the Ink Plus sign-up page temporarily showed this better offer when accessed from affiliate web sites like mine.  This proved to be an error, and Chase quickly shut down that page.  However, new sign-up offers can’t just appear out of thin air (I don’t think).  Instead, it seems likely that Chase was preparing this new offer and accidentally released it too soon.

Now, while I do believe the better offer is coming, I don’t know if November 11th is really a date set in stone.  Even if Chase has given that date to employees, that doesn’t mean things won’t change between now and then.  That being said, I have no reason to disbelieve the date, so I’d give it better than even odds.  Plus, my friend Carol will be turning 50 on that date, so that can’t be a coincidence can it?

Seeing it coming

If Chase holds true to form, affiliates (i.e. bloggers like me) will be told a day or two ahead of time that they must disable their sign-up links to the Ink Plus (and to any other card affected) on a certain date.  At that point, you’ll see a slew of blog posts contemplating the meaning of this (e.g. “Will the sign-up bonus get better or worse?”,  “Is Chase changing the bonus categories of the card?”,  etc.)^*.

^{* Answer key: 1) Better; 2) No}

Which Ink offers will change?

Immediately after the accidental launch of the new Ink Plus sign-up offer, affiliates were told to disable links to the Ink Plus, Ink Cash, and Ink Classic, but not the Ink Bold.  The next day, the links were restored.  I thought it was strange at the time that the Ink Bold was excluded.  My guess now is that the Ink Bold may be the only Ink card in which the signup offer stays the same.  Hopefully we’ll see improved offers not just for the Plus, but for the Cash and Classic cards too.  Note, again, that this is just speculation on my part.

What to do?

If you’re thinking of signing up for an Ink card, you can simply wait until November 11 (or so) and see what happens.  If you’re eager to get an Ink card right away, though, I’d recommend the Ink Plus over the others.  The reason is that the Plus is the card most likely to get a better offer, and Chase is usually very nice about letting people switch to the better offer if they applied recently.  If you’ve already signed up for the Ink Plus, wait for the better offer to appear and then call or send a secure message to Chase asking if they can switch you to that offer.

See also

• Considering and Reconsidering Ink
• How to sign up for the Ink Bold (or Ink Plus)

Many people who live or work near well stocked Office Depot stores have been happily reaping the benefits of earning 5 points per dollar on all purchases through the trick I presented in the post “One card to rule them all.”  Lately, with the arrival of American Express’ new Bluebird product, that trick has become even more profitable since it is now possible to earn 5X not just for credit transactions, but for bill payments as well! (see “Bluebird takes flight and changes the game“).

In order to play the 5X everywhere game, you need two things: you need a Chase Ink card (see “Considering and Reconsidering Ink“), and you need to be able to buy Vanilla Reload cards at an Office Depot store.  The first is relatively easy [see "How to sign up for the Ink Bold (or Ink Plus)"].  The second can be a challenge.

While many of us have been happily buying Vanilla Reload cards as needed, many others have been seething on the sidelines.  Some have no Office Depot stores anywhere near them.  Some live in places where Office Depot doesn’t carry Vanilla Reload cards and/or seem to be always out of stock.  These groups need a backup plan!

5X Backup Plan Overview

The key to this backup plan is that the American Express for Target prepaid card can be reloaded at Target cash registers using any credit card.  Since Visa, MasterCard, and Amex gift cards can be used like credit cards, they can also be used to reload the Target Amex card.  If you’re able to earn 5X (or more) by strategically buying bank gift cards (or prepaid cards), you can load those cards onto the Target Amex card.  Then you will have the almost as good “one card to rule them all.”

Step 1: Get the American Express for Target card

In order to get the American Express for Target card, you need to go in person to a Target store that carries them. You can find those stores here.  Unfortunately, finding the store is just half the battle.  It can be surprisingly difficult to find this product in a store that carries it, and even then there are challenges to getting the card.  For details of how to get the card, see “How to get the American Express for Target card.”

Note that the card that you buy at Target is just a temporary card and cannot be reloaded.  You should wait for your permanent card to arrive before proceeding to the following steps.

Step 2: Buy bank gift cards or prepaid cards for extra points or cash back

If you’re unable to buy reload cards, Vanilla Visa cards are a great alternative.  These can be loaded once at the register, up to $500, with a tacked on $4.95 fee.  Here are some ideas for how to buy Vanilla Visa cards and other bank cards for extra points or cash back:

• Use a Chase Ink card to buy the Vanilla Visa card at Office Depot.  You will earn 5X Ultimate Rewards points. Often, if Vanilla Reload cards are out of stock, it is still easy to find and buy Vanilla Visa cards.
• Use a Hilton HHonors Amex card to buy the Vanilla Visa card at a drug store, grocery store, or gas station. You will earn 6X Hilton HHonors points.
• Use a Blue Cash Preferred card to buy the Vanilla Visa card at any Grocery Store. You will earn 6% cash back (soon to be limited to $6K in purchases per year)
• Use any American Express business card with OPEN Savings to save almost 7% when buying Visa gift cards at OfficeMax (see “10% off everything and 7% off everything else“).  Note that this trick is highly dependent upon your local OfficeMax allowing gift cards to be used to buy other gift cards.

Note: If you don’t understand the difference between Vanilla Reload cards and Vanilla Visa cards, please see the post “The many flavors of Vanilla.”

Step 3: Load the gift cards onto the Target Amex card

You have to go in person to Target to use credit cards or bank gift cards to reload your Target Amex card.  Target charges $3 per load so the best value is to load the max allowed $1000 at a time.  Don’t worry if your bank gift cards are in smaller denominations.  The Target register is smart enough to drain the gift card and then ask for payment for the balance.  I have successfully used as many as 5 forms of payment for a single load, and I don’t see any reason why you couldn’t do even more.  Even when using multiple forms of payment to get to $1000 (really $1003, due to the load fee), the load fee is charged only once.

Just as an aside, it used to be possible to pay for the reload with Target gift cards, but in the past several months Target has been cracking down on this option.  The last time I went to Target to reload, a big message appeared on the register that said that Target gift cards may not be used as payment for this transaction (or something like that).

Step 4: Use your Target Amex card (almost) everywhere

The main advantages of the Target Amex card over using individual gift cards are:

• Ability to make larger payments.
• No need to carry many different gift cards.
• Card is fully registered to your name and address and so it works well for online purchases (unlike Vanilla Visa cards which only allow registration of your zip code).
• ATM use.  You can withdraw money at any ATM.

Unlike the Bluebird card and generic American Express Prepaid cards, though, the Target Amex card cannot be used outside the United States.  Specifically, the FAQ states: “can not be used outside of the U.S., Puerto Rico, and the U.S. Virgin Islands.“

Fees

• When buying gift cards and prepaid cards there is usually a fee for each card.  The best value is usually the highest denomination card available (e.g. $4.95 to buy a $500 Vanilla Visa card).
• Target charges $3 per reload in-store
• Amex charges $3 per ATM withdrawal after the first free withdrawal each month.  Note that ATM owner fees apply as well.  One good option for many are Costco ATMs which charge only $1.25 per withdrawal.  You do not need to be a member to use their ATM.

Limits

• Number of cards: Each person is allowed up to two cards.  Only one may be purchased in a day.
• Maximum balance: $2500 per card
• ATM withdrawals: Limited to $400 per day

Wrap Up

The backup plan described here isn’t quite as good as “One card to rule them all” and it is a far cry from what is now possible with Bluebird (“Bluebird takes flight and changes the game“), but it can be a good option for those who otherwise can’t play the 5X Everywhere game.

In addition to providing a 5X everywhere alternative, the Target Amex card has some other nifty uses.  For example, I’ll follow-up soon with details of how best to use this card to meet credit card minimum spend requirements.  Additionally, for those sitting on lots of bank gift cards (for whatever reason), the Target Amex card offers a pretty easy option for liquidating those cards!

Related Posts and Links

• How to sign up for the Ink Bold (or Ink Plus)
• How to get the American Express for Target card
• Using the Target Amex card to run up spend
• One card to rule them all
• Bluebird takes flight and changes the game
• Considering and Reconsidering Ink
• Where to buy Vanilla Reload Cards

Ever since I published a way to earn 5 points per dollar everywhere with Chase Ink cards (see “One card to rule them all“), many people have become interested in signing up for these cards.  Interest seems to have swelled recently thanks to all of the hubbub regarding the new Bluebird card (see “Bluebird takes flight and changes the game” and “Bluebird lands. Questions answered“).  With Bluebird and a Chase Ink card its possible to earn 5X not just for all credit transactions, but for virtually all payments of any kind.  So, its no surprise to see increased interest in Chase Ink cards!

In this post I’ll try to cover everything you need to know about the process of getting an Ink card, including what is likely to happen after you are approved.

Types of Ink

Chase offers four different Ink cards, all of which work with the 5X everywhere technique.  The Ink Bold and Ink Plus cards are identical except that the Bold is a charge card (which must be paid off in full each month) and the Plus is a credit card.  The Bold and Plus cards offer 50K sign-up bonuses (after $10K in spend), are limited to $50K in 5X spend per year, and have a $95 annual fee after the first year.  The Ink Classic and Ink Cash cards offer 25K sign-up bonuses (after $5K in spend), are limited to $25K in 5X spend per year, and have no annual fee.  All four cards earn 5 points per dollar at office supply stores and cell phone, landline, and cable bills.  Points earned on the Bold or Plus can be transferred directly to airline miles and hotel programs.  Points earned on the Classic and Cash can only be transferred indirectly to those programs.  To do so, you would need to first transfer points to a card that can do the transfer (such as the Bold, Plus, or Sapphire Preferred cards).

Do I need a business?

Chase Ink cards are business cards intended for small business owners.  I get asked often if one can get an Ink card if one doesn’t have a “real” business.  The answer is yes, most likely.  You just need to be creative about what you consider to be your business.  Good examples include selling items at yard sales or online, writing a novel, writing a blog , owning rental property, consulting, etc.  When determining whether to approve your application, Chase will consider your entire income, not just the income (if any) from your business.

How do I fill out the application?

There are some questions on the application that might not be obvious as to how to answer.  Examples include “Type of business” and “Tax ID”. 

Please see my post “How to sign up for the Ink Bold (or Ink Plus)” for step by step instructions. 

Despite the title of the post, the instructions show how to signup for any of the Ink cards (Bold, Plus, Classic, or Cash).  The tips in that post can even be helpful for signing up for other non-Chase business cards, but the specific screen shots and options shown are specific to Chase.

What if I get turned down?

After applying, you are likely to get a message saying that your application is under review.  At that point you could simply wait a few weeks to see what happens, or you can proactively call the reconsideration line to get an instant decision.  Whether you’re anxious to get a quick answer, or if your application was declined, your next step should be to call the business reconsideration line:  Call 800-453-9719.  They generally answer quickly (Monday through Friday during business hours).

Here is an example of such a call (contributed by a reader who was initially turned down):

Rep: I see that the original decision was declined, but I can see if we can be of any further help by asking few business related questions.
Me: Yes, please.

Rep: What kind of business are you in?
Me: Online sales.

Rep: What kind of goods do you actually sell?
Me: Electronics, housewares, etc.

Rep: How long have you been in this business?
Me: Almost an year.

Rep: What were your sales for the past 1 year?
Me: $9000

Rep: Source of income on application shows XXX USD. Do you confirm?
Me: I do.

Rep: I see you currently owe balances on two personal cards. How much of the balance do you pay on these cards each month?
Me: The minimum payments for both of these cards together is $130, but I pay a total of $350 every month to clear the balances faster.

Rep: I am now able to assure you that your application has been approved with an initial spend reserve of $5000. The more you use the card, the higher the reserve will go.
Me: Thank you so much.

Quick soapbox aside: Note that while this reader was approved despite having balances to pay down on other cards, I don’t generally recommend getting new cards until you have paid off all existing balances and have proven to yourself that you can pay balances in full each month.

The scary follow-up call

Once you’ve had your Ink card in-hand for a week or two you are likely to get a call from Chase.  They’ll ask you lots of questions about your business and how you intend to use your card.  Some people get scared by this call because it seems like Chase is “on to you” (as if you’re doing something wrong).  In reality, they’re just trying to understand their customer better, and they’re making sure that the allowed amount of spend is big enough for your needs.  After a recent call like this, the agent doubled my spending limit!

Online account access

Another issue people face when they get their Ink card is that the card doesn’t show up on their online account (if they already have a personal account with Chase).  When you first get a business card, you need to setup a new business account with a different ID than your personal account.  Once that is done, you can optionally call Chase and ask them to add your personal cards into your business account so that you can see everything in one place.  For some reason, Chase doesn’t allow you to go the other way: you can’t add your business cards into your personal online account.

More about Ink

• See “Preparing for Miles” for a list of cards that offer special category bonuses (including the Ink cards) and elite status perks.
• See “How to sign up for the Ink Bold (or Ink Plus)” for step by step instructions.
• For tips on how to meet Ink minimum spend requirements, see “How to spend $10,000 in three months, and earn 90K Ultimate Rewards along the way.”  Note that this was written before Bluebird.  It’s even easier now with that new card!
• For a complete explanation of how to earn 5X everywhere, see “One card to rule them all.”  Also note that the bottom of that post has a complete set of related links that will (hopefully) tell you everything you need to know about 5X everywhere techniques.

Please let me know if you have any questions!

Recently I’ve heard from several people who are trying to max out the Ink Bold (or Ink Plus) 5X benefit before the end of the year.  Don’t do it.  Slow down.  Let me explain…

Background

The Chase Ink credit and charge cards offer 5 points per dollar for purchases made at office supply stores, and for internet, cable and phone services.  The Ink Bold and Ink Plus cards allow 5X for up to $50K in spend per year, whereas the Ink Classic and Ink Cash limit 5X to $25K per year.  Since the discovery of ways to earn 5X everywhere (see “One card to rule them all“), and multiple ways to do so (see “Vanilla Reloadables“), some people have been eager to max out these benefits.

Dangers

There are a few reasons not to max out the Ink benefits too quickly.  Foremost is the danger of getting your Chase accounts shut down.  Please see “Why Chase cancels accounts (and how to protect yourself)” and “Inking 5X: What’s safe?“  Secondly, the $50K (or $25K) clock is not based on the calendar year.

The $50K Clock

People who are rushing to max out their $50K (or $25K) benefit before the end of the calendar year need to know that the clock is not based on the calendar year.  Just to be 100% sure, I asked Chase to clarify the $50K annual limit.  Here was the answer:

Annually means the year beginning with the account open
date through the first statement after the anniversary of
your account open date, and each twelve billing cycles
thereafter.

So, if you got approved for your card in August, then you have until next August to max out your 5X benefit.  That’s why I always say there is no reason to spend more than $4K per month in 5X categories ($4K x 12 = $48K – close enough to $50K in my opinion).

Of course, just because $4K per month is the most I recommend spending, that doesn’t mean it is safe for you to do so.  Once again, please read “Why Chase cancels accounts (and how to protect yourself)” and “Inking 5X: What’s safe?” if you haven’t already.

In April, I posted “Why Chase cancels accounts (and how to protect yourself).”  In that post I warned people about dangers in maximizing credit card perks (like the Ink Bold’s 5X office supply category).  Specifically, I wrote:

Use tricks that maximize credit card perks in moderation.  For example, buying Visa gift cards at Staples to help meet the Ink Bold’s $5K spend requirement (for the signup bonus) should be fine if you spread out the purchases over several months.  If you suddenly start spending $10K per month at Staples, though, I expect you’ll get noticed (in a bad way).

Since writing that post, the Ink Bold’s minimum spend requirements have doubled to $10K in three months, and I posted a better way to leverage the Ink cards to earn 5X everywhere by buying Vanilla Reload cards at Office Depot (see “One card to rule them all”).  Later, Chase unveiled a new Ink card (the Ink Plus) with the same earning structure and signup bonus as the Ink Bold.  All of those happenings have combined to lead many people to spend lots of money at Office Depot stores.  There’s little doubt that Chase is well aware of this phenomenon, and they’re probably not happy since a 5X payout is far more than they earn from merchant transaction fees.

Account closures

In my post about why Chase cancels accounts, I wrote about people who took extreme advantage of Chase’s AARP 5% cash back, and others who took advantage of Chase Freedom’s 10 points per transaction (when combined with a checking account).  Chase shut down those accounts without warning and with no explanation.  At that time, I had not yet heard of anyone getting shut down for overuse of the Chase Ink 5X categories.

After I wrote “One card to rule them all,” some people asserted that they or a friend had been shut down.  Often, though, comments like these come from people who intentionally want to scare others away.  They want the deal to last longer for themselves and hope that scaring people away will help.  I didn’t give much credence to those comments at the time, but I saw them as a fair warning nevertheless.

More recently, though, I’ve received a couple of emails about account closures that seem legitimate.  One person admits that he not only bought lots of Vanilla Reload cards at Office Depot, but also did many other things to “manufacture spend”.  In his case, Chase called to question him about his account activity, but when he failed to adequately explain his purchases, they shut down his accounts.  If history is a guide, he should eventually get paid 1 cent per point for his point balance, but it may take a while.  I have much less information about the second person who was shut down.  Apparently he tried to log in one day, but couldn’t.  When he called Chase, one of the managers asked him a number of questions about his Office Depot purchases, so he assumes that those purchases are to blame for his shutdown.

Both of these recent stories are scary for those of us who buy gift cards and reload cards at office supply stores.  Were these guys really shut down because of their Office Depot transactions?  There are other possibilities.  Auditors may have identified them as bad credit risks.  Or, their overall spending behavior may have triggered alarms.  Maybe they regularly spent more than expected.  For example, they may have been spending more on their Ink cards than what they reported their business income to be on their credit application.  There are many possibilities, but unfortunately we’re unlikely to ever know the truth for certain. 

So, what’s safe?

People ask me this all the time.  Can they safely buy $1000 worth of Vanilla Reload cards per month?  $2,000?  $3,000?  $4,000?

Sadly, I simply don’t know.  I expect that the answer varies depending on your circumstances.  If you are a big spender with a thriving business and a long history of excellent credit scores, then I’m sure you can get away with much more than someone with otherwise low spending patterns, small reported business revenue, and a short credit history.

My advice is to examine your own situation as if you were a Chase auditor.  Do your spending patterns look suspicious?  Are you a bad credit risk?  Are you an unprofitable Chase customer?  If you answer yes to these questions, then reduce your office supply purchases accordingly.  Also consider your own risk tolerance.  If you find yourself stressed out over whether or not Chase will shut you down, it’s probably not worth playing this game.

Protecting yourself

Some people proactively cash out their points or transfer them to their favorite loyalty program (United, for example).  The hope is that if Chase cancels their accounts they will at least still have profited from the points earned.  It seems unlikely that Chase will try to claw back points already redeemed. 

Personally, I highly value the ability to move Ultimate Rewards points to various loyalty programs as needed.  I don’t know right now whether I’ll want to move my points to United or Hyatt, for example.  I also don’t know who’s account I’ll want to move the points to.  It’s great that Chase allows you to move points to other people’s accounts, and I highly value that option.

Another possible way to protect yourself is to move keep points as Ultimate Rewards points, but transfer them to a friend or relative (assuming the friend or relative is less likely to get shut down).  The risk with this approach is the possibility that this action will cause your friend or relative to get shut down as well.  I’m not saying that’s a likely outcome, just that it’s possible.

For ongoing discussions about this topic as a whole, see this FlyerTalk thread. 

My plan

For now, I’ll scale back my Office Depot purchases a little bit, and increase my use of Chase cards for non bonus spend.  No, the sky isn’t falling:  I’m still not convinced that Chase is gunning for people who buy gift cards and reloadables at Office Depot, but it makes sense to be cautious.

Reader experiences

Has Chase called you to ask you to explain your office supply purchases?  Have you or someone you know had your accounts shut down?  Please comment below.