We all have family or friends who just don’t “get it.” Either they think points and miles are a scam, or they don’t want to put in the effort. Other times, they aren’t sure they’ll be able to travel and don’t want to get “stuck” with points they can’t use. Or sometimes, they know the rewards are worth it but don’t want to ding their own credit.
While that last part (about credit) is understandable, the other excuses really grind my gears. Nothing makes me crazier than people who want to travel for free but refuse to earn rewards!
Still, you can usually convince a few people to earn their own points and miles. Here are a few arguments and strategies I have used in the past.
“You can always turn your points in for cash if you can’t travel.
Since I almost always suggest the Chase Sapphire Preferred for newbies, this one is a no-brainer. If they don’t end up traveling, they can always redeem the huge signup bonus for cash back at a rate of one cent per point. If your friend likes gift cards, that’s another angle to take. Who wouldn’t want a few hundred bucks in gift cards to spend on Christmas, birthdays, or dining out?
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Earn 50,000 bonus points when you spend $4,000 on purchases in the first 3 months from account opening. That's $625 in travel when you redeem through Chase Ultimate Rewards® Read Review » |
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“Opening a new credit card might actually boost your credit score.”
While opening new credit can ding your score right away, increasing your credit limits can improve your credit utilization rate, and that can boost your score. That’s not always the case, of course, and there are a lot of factors that play into your credit score. Still, this is a good – and normally true – argument to make.
“You can usually try it for a year before the annual fee hits.”
Since most rewards credit cards waive the annual fee the first year, your friend won’t have to pay out-of-pocket to try things out. Since most people assume credit card rewards will cost them money in some way, this is a solid argument if they’re considering a card that is fee-free the first 12 months.
“The signup bonus is almost always worth it!”
While some people don’t spend enough on credit to earn a lot of ongoing rewards, signup bonuses might be enough to sway them. The 50,000 point signup bonus on the Chase Sapphire Preferred card is basically $500 in free money if you never pay interest, right? Who wouldn’t want an extra 500 bucks?
The Bottom Line
There are plenty of reasons people are reluctant to join this hobby, and many of them are completely understandable. Still, there are times when it pays to explain all of the benefits and alternate uses of points. Maybe you want your friends to travel with you, but you know they couldn’t afford it without rewards. Or perhaps they keep saying they should sign up but never do.
At the end of the day, it’s up to each of us to decide what we’re comfortable with. And some people wouldn’t touch this hobby with a ten-foot pole. While I don’t understand people who think this way, it’s not my job to fix them, either. Generally speaking, when fewer people take advantage, there are more points and miles to go around.
Have you ever convinced a family member or friend to earn their own points or miles? Why or why not?
[Image via Getty]