Jenn is a residential house cleaner and owns her own business. That’s a huge bonus when trying to accumulate points. Why? Because if you own a business, you have access to business credit cards. One problem though was that even though she had owned the business for years, she didn’t have a bank account or any credit cards assigned to the business. She applied for the United Explorer business card but was put in purgatory until she was able to open a bank account. Once that was cleared up though, she was good to go with our 3rd United Airlines credit card.
The bonus on the United Business card was 75,000 after a spend of $5,000 in 3 months. This was the highest required spend that we had dealt with up to that point, I didn’t think it would be a problem, but Jenn was a little nervous about it.
The United Business card has a $99 annual fee, waived for the first year. It earns 2x points per dollar on dining, gas stations, office supply stores and United purchases, 1x on everything else. It also gives you a free checked bag on any flight and 2 one-time United Club passes annually. Also, on renewal if you have a business card and a personal card you get 5,000 point bonus each year you hold those cards.
I was also able to refer Jenn’s business from my personal United account which earned me an additional 10,000 points.
My First Redemption!
By this time, I was starting to feel pretty confident in our abilities to get points. It was also going to be our 25 anniversary so we decided that we would do a anniversary trip. I decided that we should visit Cabo San Lucas in Mexico, and Jenn was okay with me making the travel plans, which was unexpected. The issue for going to Cabo was that I didn’t want to use United miles because we were saving them for the flight to Munich. The two main airlines that fly from Chicago to Cabo are United and American. The problem was that Citi points don’t transfer to either one of those airlines. But, you can book a United flight through the Turkish Airlines Miles and Smiles program and they are a Citi transfer partner. I will go into greater detail on this in another post, but I was able to book 2 round trip tickets to Cabo San Lucas for 40,000 points and around $225. The $225 dollars is because while you can use points to pay for the flight, you can’t use them to pay for taxes, and Mexico has some pretty expensive taxes on flights, in this case, over $100 per ticket.
Ok, on to the point check!
Since I wasn’t working on a bonus, I went back to using my Citi card for everything because it has a lot of 3x categories and it’s transferrable points. I spent just shy of $2,300 and earned around 4,200 points. Jenn was using her personal United card and spent just over $2,300. She earned around 2,500 miles. I earned 10,000 United miles on the referral. Jenn also spent $800 on her business United card and earned 900 miles.
That left us at around 163,500 United miles and after the redemption and 52,600 Citi points.
What we did right
At the time of booking the flight, a round-trip cash ticket from Chicago to San Jose Del Cabo Airport was running around $450, so if you figure that the flights would have cost $900 and the taxes were $225, then I saved $675 on the flights for 40,000 points. That gave me a redemption value of right around 1.7 cents per point, which is what most people pegged the value of Citi points at, so I was pretty satisfied with the redemption.
What we did wrong
I also put a down payment on an AirBNB in Cabo. The rate for the AirBNB was $1200 dollars for 4 days. I don’t know if I would spend that much on that place again. It was very nice, but it was also $300 per night. Also, it sure seems like our spending was really high that month, so I have a feeling we spent a little over our budget for the month.
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