One of the eternal conundrums many frugal travelers face is managing their relationships with each of the banks they do business with. Many of us carry at least one credit card from each of the major credit issuing banks, reaping the rewards of our relationships with those banks. In turn, many of us often receive additional offers from those banks to deepen our relationships with them, ranging from free money to additional points earning opportunities.
When it comes to using banking options to multiply points and miles options, should we use the generous opportunities that come our way to earn even more frugal travel options? As with everything in life, it all depends on how we earn points and how much information we want to disclose to our creditors.
First off, let us consider the good options that come with expanding a banking relationship. In some situations, frugal travelers can get better offers for their credit cards when applying in a branch instead of over the Internet. When applying with someone in person, travelers may get either additional points, lower minimum spending requirements, or some combination of both. In addition, a banker trying to build a relationship may have more sway with reconsideration lines, in order to turn decisions towards the frugal traveler.
In addition to up-front offers, travelers may also receive more opportunities to earn points and miles through their relationships. For example, Citi offers the opportunity for checking account holders to earn as many as 1,000 ThankYou Points every month for utilizing normal account benefits. This includes directly depositing checks, using bill pay services and combining accounts. An additional 12,000 ThankYou Points for seemingly nothing isn’t a bad way to go.
Although there are plenty of excellent options for frugal travelers to earn more with their banking relationships, there are also some downsides as well. Because travelers are putting more eggs into a banking basket, every aspect of their relationship is up for additional scrutiny. As a result, those who wish to gain points through credit card sign-ups could have more road blocks from their banks because of their relationship.
In addition, banks are more apt to pay attention to the transactions of those in their systems already. Travelers who get too loose in applying for bank cards or earning points through credit cards are (anecdotally) at a higher amount of risk to have their accounts frozen or shut down. When this takes place, travelers cards could be canceled, with the potential for all their points and miles to go down the drain.
Does it make sense to take advantage of banking bonuses? While some travelers may find a great reward for their banking habits, others may put themselves at unnecessary risks for their situations. Those travelers who maintain normal habits with their banks and keep high balances can find even more opportunities to earn bonuses, which gets them closer to their next trip. However, those who are in it solely for the points may want to consider keeping business and personal lives separate, keeping boundaries on all accords.
While earning bonuses and getting easier access to cards may sound tempting, it also comes with a certain amount of risk. By understanding the potential on both sides, travelers can make the best decisions about their points earning now and into the future.
Do you bank at the same place you earn points? Share your experiences in the comments below!
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