Last week I detailed how I was going to rejiggle my credit cards.  I had decided to apply for American Express Blue Cash card given the bonus structure, 5% on Gas and Groceriees and 1.5% on everything else after spending $6500.  I decided to a little more research as I had some doubts if the $6500 was done on calendar year basis or 12 month rolling basis based on when the card application was made.  Given that we’re more than mid way through September, it doesn’t make much sense for me to use a card that would only be paying 1% and .5% respectively if determination was made on a calendar basis.  My initial determination was that it was determined on a calendar basis.  I eventually called American Express directly, and the nice woman I spoke with indicated that it was done on a rolling basis. However, by this point I had already gone ahead and applied and recieved for a Starwood Preferred Guest American Express card.  Even though I did speak with someone, I still have some lingering doubts.

The annual fee ($45) for the first year is waived, I get 10,000 bonus points for just signing up, and I am eligible for another 15,000 bonus points.  Those last 15,000 points come with a big catch.  I need to spend $15,000 in the first 6 months of having the card. That’s $2500 a month which is more than I put through all my credit cards currently. I have no desire to change my spending habits as that would be a cardinal money sin. Never put the carriage in front of the horse.  I still plan on using my Chase Freedom for gas and groceries, given the high 3% payout rate on those items.  However, I do want to get those extra 15,000 points.  I’m not going to change the amount I spend, but I can change how I spend it.  I still use quite a bit of cash. In any given month, I spend about $300 in cash.  If I can convert most of my cash spending into credit card spending I should be in good shape. One area where I tend to use cash is when I settle up bills out with friends.  I can actually take advantage of those situations by collecting the cash and paying the entire bill on my card.  If I’m disciplined, I believe I can hit the goal of 15,000 spent on the credit card in 5 month.  At that point I should have 40,000 Starwood points (10,000 signing, 15,000 bonus for spending in 6 months, 15,000 just from regular accrual rate of 1 point per $1 spent).  36,000 points entitles me to 3 nights at The Westin Maui Resort & Spa, Ka’anapali which in December costs about $365/night for a total value of $1095.  If I earned all the points via spending, I would be achieve 3% payout ratio on all spending which is difficult to beat.