Really worth it?
Hi all, looking for some advice from pros here as I’m completely new to the miles game. *long post ahead*
Always been a cashback guy because I’m not into travelling (gasp), but Cardup has piqued my interest to get some value back from my insurance and tax payments. Since I pay my premiums annually, that lump sum exceeds the cashback cap of any >3% cashback card out there, so I have no choice but to dip my toes into the miles game. Citi Premiermiles is of course my preferred choice because I will likely be accumulating miles slowly and over a long time, and citi miles don’t expire.
Card: Citi Premiermiles
Annual expenditure on card: $4000 (assume I only pay insurance and tax, via cardup)
Miles earned per year: 5052 (from cardup calculator)
Miles needed for a return EY trip to Bali: 15k (correct?)
No. of years needed to earn this trip: 3
Equivalent cashback: ??
Basically, assume that I only intend to use a miles card to make use of Cardup. Is it worth to jump into this game, considering Cardup’s 2.6% fees?
What I mean by equivalent cashback is this:
Assume a 5% cashback card with no cap. I pay $1k premium via cardup = $26 in fees. 5% cashback on $1026 will give me $51.30, which offsets the $26 fees and essentially gives me $25.30 discount off the premium. So in this ideal scenario I should use cardup.
Now in the example above, 5052 miles per year means I can redeem a Bali trip after 3 years, which means I will have incurred 107*3=$321 in cardup fees.
Perhaps I’m not sure how to phrase this properly, but what I am trying to ask is whether this Bali trip after 3 years is equivalent to offsetting the $321 in fees AND giving me a discount on the $4k premium paid. If not, if I accumulate miles for a further trip, is there any scenario where I will be offsetting the fees incurred at the very least?