First time for everything, right?
This hobby has taught me a lot. First, I was appalled by paying annual fees on credit cards. I mean, I had my trusty Discover card. Who needs a card that’s going to charge you just to use it? Plus, way before all of that, I thought all credit cards were evil!
Then, I thought people chasing status were crazy. I’m too tough for premium level service anyway, that’s for sissies. That may have changed too.
And up until recently, I thought buying your miles was nuts.
Well, that’s all changed.
I obviously love my credit cards, and I’ve dabbled in chasing status. Pretty soon, I’ll buy some SPG points. Here’s why:
- SPG is currently offering a 30% savings on the purchase of Starpoints.
- I’m still working on my personal SPG card spend (and these purchases should earn double SPG points).
- I’m planning on using them for an SPG (or Marriott) Nights + Flights package in the future.
- Generally speaking, SPG points are quite valuable. Many folks value them from 2.2-2.5 cents per point. This is mostly due to their flexibility, and the 5,000 point bonus for transferring to airlines in 20,000 point increments.
With all this in mind, I’ve decided it’s time to pull the trigger! I plan on buying 30,000 SPG points, the maximum allowed per year. Go big or go home, right?
Those SPG points will cost me $735 with the current promotion. Since I’ll pay with my American Express SPG personal card, I’ll be earning additional points. This may not always be the case for buying points, but the AmEx SPG happens to earn double on any points purchases. For example, I don’t think buying American Airlines AAdvantage miles on my Citi AAdvantage Platinum Select will earn my extra miles, since the transaction is processed through a third party. For whatever reason, SPG and Amex do let you earn double points, all the more reason to do go for it!
$735 charge x 2 points/$ spent on SPG = 1,470 SPG points
Added to the total purchased points (30,000 SPG), I’ll end up with 31,740 SPG points. Is it worth it? Remember, due to their flexibility, SPG points are consistently valued around 2.5 cents per point. As long as I beat 2.5 cpp, this seems like a decent buy.
$735 charge / 31,740 SPG points = 2.316 cpp
A great deal!
What makes this even better though, is the need to meet minimum spend requirement on my personal SPG card I opened up last month. I need to spend $3,000 in the first 90 days, for a bonus of 25,000 SPG points. That comes out to around 8.3 points per dollar spent, on that 735 charge, I’ll earn 8,820 SPG points from the bonus. My total haul will be the sum of all of these points:
SPG points bought + SPG Amex spend points + SPG sign up bonus points
30,000 SPG + 1,470 SPG + (8.3 points/$ x $735 charge)
30,000 SPG + 1,470 SPG + (~6,100 SPG) = Total haul of 37,470 Starwood points
So, 37,470 Starwood points for a total cost of $735. This brings my value down to 1.9 cents per point! That’s a fantastic deal on some valuable points, and I’m excited to purchase them later this month!
I’ll update once I’ve purchased them. Just a quick post for tonight, since I was itching to update you all with my latest news. Enjoy your weekend!
Hat tip to Reddit for convincing me this wasn’t the worst idea in the book, which I happened to believe, until I read some savvy analysis by some dedicated Redditors.