I Earned $550 in 3 Months With These Two Credit Cards

Like many people who move away from their hometown, I travel frequently during the holidays. No matter how much planning I do, the cost of flights can be a gut punch — this year it cost my wife and I $1,900 in airfare just for Christmas travel. I knew I needed to find a better way to save on travel in the future.
Daniella Flores, a CNET Money ERB member and side hustle expert
The average American saved $515 on travel last holiday season by using credit card rewards and points, according to an IPX1031 study, a Fidelity National Financial Company. I couldn’t pass up that saving opportunity.
After some research, I found two rewards credit cards that would net me $550 in welcome bonuses, plus score me an extra 30,000 miles and earn cash back on everyday purchases. Now that I’ve earned these rewards, I’m stashing the money in a high-yield savings account so I’ll continue to earn interest on the bonus. Here’s what I did, and how you can do the same.
The two rewards credit cards that earned me $550
I chose two credit cards that aligned with my lifestyle and spending: the Alaska Airlines Visa Signature® credit card and the Apple Card*.
The Alaska Airlines Visa Signature card
Choosing the Alaska Airlines card was a no-brainer for us. Alaska Airlines is our airline of choice every time we travel — a major airline in our state of Washington — and we typically use it at least three times a year. This card offered a welcome bonus of 30,000 miles, a $99 companion fare and a $300 cash bonus after spending $4,000 or more on purchases in the first 90 days of opening an account.
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Earning a welcome bonus can be an easy way to snag rewards for planned purchases. We used the credit card to pay for these flights, then paid off our credit card balance. We also decided to use this card to pay for a yard project. These two items were able to get us to the $4,000 spending threshold to earn the $300 welcome bonus. Since we’d already budgeted for the purchases, and paid the card off right away, we didn’t end up overspending and didn’t have to worry about credit card interest.
The Apple Card
The Alaska Airlines card would be great to help us earn rewards and discounts on future travel, but it wasn’t the best card for everyday purchases. So we found for another card we could use more readily: the Apple Card.
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We decided the Apple Card was the right fit for us because its rewards categories matched well with our normal spending. The Apple Card offers 3% cash back on Apple purchases and select retailers like Uber, Walgreens, Exxon and Mobile — all of which we shop regularly. You also get 2% cash back on all other purchases when you use your iPhone to pay with your Apple Wallet.
As an added bonus, we could earn a $250 sign up bonus by spending $2,500 in the first 90 days of account opening. Unlike most credit cards, the Apple Card came with something even more eye-catching: a high-yield savings account with a 3.9% APY.
I was able to earn the welcome bonus by putting my groceries, Uber rides, food delivery service charges and a new couch on the Apple Card. The signup bonus and any cash back we earn is automatically transferred to our Apple high-yield savings account. I love this perk because I’ll continue to earn interest on those savings.
Read more: Stop Making These 4 Mistakes When Cashing In Your Credit Card Rewards
How I redeemed the rewards for cash
The total cash-back earned from signing up for both cards was $550. However, I didn’t get this as an instant deposit into my bank account.
The Alaska Airlines credit card welcome bonus was applied as a credit to my bill, which reduced the total balance due on our credit card. This helped us save money on flights we already bought for Christmas.
With the Apple card, the bonus was added to my Apple Daily Cash, which was deposited into my Apple high-yield savings account. I’ll let it sit there and accrue interest until I’m ready to use it.
How I’m maximizing the rewards
I didn’t choose either of these cards for one-off cash grabs. These were carefully selected to achieve our long-term goals of saving on travel costs and building up a bonus stash of savings.
With the travel rewards earned from the Alaska Airlines card, I can potentially fly for free for two round trips, depending on the dates and distance of the flights I book. Because of the companion pass, my wife will also get to fly with me for $99 (plus taxes and fees). We’ll also earn miles on travel purchases we make with the card, which can be applied to future travel.
Our savings with the Apple card are a little different. It doesn’t offer miles like the Alaska Airlines card but automates cash-back into our savings account. Since I opened the account, I already have $321 saved, with more cash back automatically transferring each time I make a purchase with the card.
I don’t plan on touching the money in my new savings account, either. I plan for it to continue to grow on autopilot and turn it into a nice bonus rainy-day fund. This is a great strategy if you need a kick in the rear to build up your short-term savings.
The double-edged sword of rewards
There are two sides to every coin. Credit card rewards can either save you money or put you in debt. Learning how to use credit cards responsibly is essential to getting the most out of your rewards.
There is no use in signing up for a credit card to earn welcome bonuses if you can’t meet the spending requirements with your regular spending. As someone who recently dug myself out of debt, trust me, that will end up haunting you in more ways than one.
Most credit cards have rates averaging over 20% right now, which is significant. If you can’t pay your bill, you can rack up significant interest very quickly.
Finding the right card and welcome bonus to fit your spending is a great way to earn rewards — but only if you budget for the expenses you make. I’m happy with the two cards we chose because we’re earning extra money toward our savings. Plus I’m earning rewards on purchases I’m making, which can help me save on future trips. But strategies like mine only work in your favor when you’re not overspending to reach the welcome bonus. Otherwise, it may spiral into debt.
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*All information about the Alaska Airlines Visa Signature® credit card and the Apple Card has been collected independently by CNET and has not been reviewed by the issuer.