Here is a guest post by Christian. It’s his first time at bat here at TMFF so let him know if you want more.
My name is Christian.. I’ve been on active duty for about 4 months. I enjoy the points/miles world, personal finance, early retirement, and travel. I’m been a fan of the Military Frequent Flyer for some time. I also write on 2 blogs. 1. My13cents.com and Discounts-deals4military.com. I happy to write a guest post today and hope you find it useful/interesting.
Military Star Card 10% Off First Day’s Purchases
About 2 months ago I walked into the main PX and was asked by an employee if I wanted to apply for the Military Star Card. I said, “No thank you“.
I’m pretty selective when it comes to getting any new credit cards and this card does not come with any sign up bonus offer. I like to “save” my credit report hard hits for larger more lucrative credit card bonuses.
She continued trying to convince me to get the card and she mentioned 2 things that caught my attention:
1. There is only a soft credit hit when applying for the card
2. I would get 10% discount on all my FIRST day purchases. The only exclusions were that the purchases had to be at any of the military stores/gas stations/etc.
There are also some other nice perks of having the card. For example, I get 10% off food court purchases on my post, discount on gas, 2% rewards on all purchases, and other seasonal promotions.
This was enough for me to go ahead and get the card. I was instantly approved (I don’t think that is hard to do) for a credit line of $4500 (max CL is $6500).
The plan for using this card was to max out the credit limit on day ONE for the 10% discount. Of course I don’t spend thousands on gas, shopping, etc. That would be pretty stupid to spend thousands on shopping to get a 10% discount (unless there were things you were already planning on getting). I was going to go straight to the GIFT CARD RACK.
Some of the gift cards available at the gift card rack at the Exchange (Ft. Bliss):
- Tons of restaurant gift cards
- Hardware/shopping stores
- Vanilla Visa Gift Cards (including some variable load up to $500)
- PayPal My Cash
- Other miscellaneous cards
I wasn’t really interested in any of the restaurant/hardware/shopping gift cards because I can get discounts on those any time with gift card reselling sites.
My 2 other options for maxing out the $4500 in one day were the Vanilla Visa Gift Cards and PayPal MyCash reload cards. Vanilla Visa GC are issued by Bancorp, which have become very difficult to liquidate lately, especially with the Target Redbird card going the way of the dinosaurs. I could unload them on to my Bluebird/Serve cards at $49 at a time, but that would be very painful. Soooo….I decided to go with the PayPal MyCash reload cards.
I’ve never purchased these before, but there are some issues with this option. PayPal is known for closing down accounts if these cards are repeatable purchased and loaded onto your PayPal account. Once your account is closed, it could be a huge headache to deal with PayPal to get any funds remaining back to you. It can take months I’ve heard. Usually the do give you a warning or two before they shut down you account.
Well, I’ve never bought these cards before and I’m not on PayPal’s radar, so I figured I would be able to at least liquidate $4500 between my account and my wife’s account. They are very easy to load onto PayPal and once on PayPal, you can send money to “friends”/family or use it to make purchases with. I plan on withdrawing it over about a months worth of time.
I was waiting to get the physical Star Card in the mail to make my DAY ONE purchase, but it was taking over a month to get to me. Then I saw that there was a promotional week that would give you 15% back on your first day purchases instead of the normal 10%. You are able to use a receipt with your card number to make purchases so I went ahead and purchased $4500 worth of PayPal MyCash cards.
This also earned over $90 in rewards (the 2% rewards points on all purchases), so the net profit from this deal was over $700!
I don’t know if the 15% off first day purchases happens very often. 10% is still a pretty good deal though.