Introduction: Understanding the Triple Dip Strategy
Welcome to the first day of December, which is the ideal time to tell you something I’ve always wanted you to know — Triple Dip Strategy. This one is for everyone, whether you’re already familiar with it or it’s new to you.
Let’s break down the Triple Dip strategy with an analogy. Imagine buying a theme pass park in December (Stage 1). For Year 2 (Stage 2), you enjoy all the rides. As the pass renewal comes up at the end of Year 2, you decide to visit one last time within 30 days to make the most of it (Stage 3). It’s like having three fun trips to the theme park but only paying for one pass. This tactic maximizes credit card benefits three times while paying only one annual fee. Here’s the breakdown:
How It Works:
- Year 1: Card Activation (Mid-December)
- Must obtain the credit card in early/mid December.
- Utilize the card’s perks for the remaining period of the calendar year (The benefits will reset on January 1st).
- Make sure your purchases show up in December Statement
- Year 2: Full-Year Benefit Utilization
- Enjoy the benefits of the card throughout the entire second year.
- The annual fee (AF) posts at the end of Year 2.
- Year 3: Annual Fee and Benefit Utilization
- Wait until January of Year 3 to use the remaining benefits for the first half of the year.
- Consider canceling or downgrading the card after benefit utilization.
Triple Dip Example: The Platinum Card from American Express
The Platinum Card from American Express comes with the following:
- Annual Fee: $695
- 150,000 Membership Rewards Points (by using Incognito mode) =$1,500 (1cent per point for simplicity)
- $200 Airline Fee Credit
- $200 Hotel Credit
- $240 Digital Entertainment Credit
- $155 Walmart+ Credit
- $200 Uber Cash
- $100 Shop Saks With Platinum
- $300 Equinox Credit
- $189 CLEAR Plus Credit
For simplicity, let’s focus on commonly used credits. If you triple dip on a $200 airline fee and $200 hotel credit, and utilize other credits like Uber Cash, Digital Entertainment Credit, Walmart+ Credit, Shop Saks with Platinum, and Clear Plus Credit at least once, the total value you can derive is a remarkable $2,700. This calculation takes into account triple-dipping on Hotel credits, and Airline Fee Credit utilizing other benefits, and factoring in the sign-up bonus value of 150,000 Membership Rewards points, equivalent to $1,500 at a 1 cent per point valuation, all while deducting the annual fee of $695.
Important Stuff to Know:
- American Express (AMEX) has a track record of not clawing back credits if you close the card within 30 days after the annual fee posts.
- Be mindful of AMEX’s policies on churning, and plan credit card applications and closures strategically.
- Timing is crucial. Apply for the card in mid-December to align with the strategy.
In a Nutshell:
The Triple Dip strategy aims to optimize credit card perks. Individuals can maximize value while paying a single annual fee by carefully timing card application, benefit utilization, and card closure. It’s a strategy used frequently by seasoned credit card users, but it necessitates careful planning and consideration of credit card terms and conditions. To make the most of the Triple Dip strategy, stay up to date on the latest credit card offers and promotions.
New to earning miles and points? Read my tips on how to collect them effortlessly [link]. I’ve got a beginner’s guide to credit card points and miles to help you start. If your credit card is declined or pending, don’t stress—it’s not over. Check this [link] for basics on the credit card application process and what to do with a reconsideration line. Explore my list of sweet spots to make the most of your miles and points. Enjoy your points and miles journey!
