"What's in YOUR wallet?"

Occasionally I post on my blog with the tag what's in your wallet? It's my tag for posts about credit cards, specifically using credit cards to earn frequent flyer points, cash back, elite status, and other perks. Have you ever wondered why I use that tag? It's a meme from years ago.

The phrase is a reference to a hilarious series of commercials by Capital One, a big credit card issuing bank, back in the 00s. They showed a horde of Viking raiders in modern-day settings. The narrative was that paying high fees on other credit cards is like being plundered. Here's one of the earliest commercials, from 2000:

Watch on YouTube

Each ad ended with the memorable punch line, "What's in your wallet?"

Once the tagline was established as a popular meme, the commercials become more lighthearted. They shifted to showing the Vikings trying to fit into the modern world while enjoying the perks of their travel credit cards. Here's a commercial from 2003:

Watch on YouTube

The ad campaign continued wth the anachronistic, fish-out-of-water theme for several more years. Capital One shifted its ad messaging, from "People are getting plundered by credit card fees from other banks," to, "So many people have switched to Capital One that these Viking raiders have had to find real jobs." Here's one from 2006:

Watch on YouTube

The Viking ads continued until about 2010. Capital One kept using the punchline "What's in your wallet?" for at least a few more years. They switched to a conventional talking-head ad format, though, with celebrity spokespeople such as Samuel Jackson and Jennifer Garner telling us why CapOne cards are better than others. The Viking commercials are classic, though. And I continue using the meme as a tag for writing about profitable use of credit cards.

Credit Card Churning

Earlier today I wrote about how I use the tag "What's in YOUR wallet?" when I write about credit cards. How much is there to say about credit cards? A lot, actually, because I do credit card churning.

What's that? A simple definition: Credit Card Churning is the practice of opening new credit cards for their lucrative sign-up bonuses, charging just enough to meet the bonus requirements, and closing them within a year or so. Here are Five Things about how it works and whether it's something you might try for yourself:

1) Aim to churn a few cards a year now.
How much you can churn depends on the availability of lucrative sign-up offers. When I joined the game during its heyday 7~10 years ago there were plentiful offers, often multiple cards aligned with the same program, and few restrictions. My most prolific year was 2015, when I opened ten new credit cards. That's a lot compared to how the typical person uses credit cards; but hard-core churners I chatted with online were opening twenty a year. Since then the banks and points programs have tightened up their offers, in most cases putting firm restrictions on how frequently you can open new accounts. Lately I've been opening just 2-3 new cards a year.

2) Don't pay interest.
Credit card churning is not for everyone. You've got to be able to pay off your balance every month. That's not a credit card company rule but it is a virtual necessity for playing a winning game. Interest charges at the ridiculous rates banks impose, often 18%+, can quickly swamp the value of the points or cash-back you earn.

3) Keep a spreadsheet.
Part of making sure you avoid the trap of paying interest charges is making sure you pay each bill on time. With lots of cards it can get confusing! Even before I started churning I was already keeping a simple spreadsheet of all my cards, showing statement dates, balances, and whether I'd paid or not. As I ramped up my card portfolio from a few cards to more than a dozen this organization became critical. It helps, too, with tracking my progress toward each signup-bonus, tracking progress toward ancillary bonuses (many cards have side offers at $10,000 spent, $20,000, etc.), and knowing when annual fees are going to be charged— so I can avoid them by canceling cards not worth paying the fee for.

4) Earn points you'll use. Cash is king!
It can be tempting to sign up for what seems like the biggest or most compelling offer. But one thing you have to evaluate is how able you'll be to use the points you'll earn. Many of these offers are for cards that pay points in an airline or hotel's frequent customer program. Do you fly that airline? Do they have lots of routes that make sense for where you live and/or want to go? Ditto similar questions for hotel programs. You don't want to amass points you'll struggle to redeem. An increasing number of credit card programs nowadays are not tied to specific airlines or hotels but are, essentially, cash-back programs that also have options for points transfers to partners. These are the most flexible. Cash is king!

5) No, it won't kill your credit score.
"Are you kidding? That'll kill my credit score!" is a common objection to credit card churning. Actually it won't damage your credit score. Not if you do it right, anyway. You'll see small dips in your score after every new account opening, but as long as you pay your balances in full every cycle and keep your utilization rates low it'll go back up. And as you bulk up your credit history with more cards and more proof of regular repayment, your score may even climb higher than before. The one caveat is if you're planning to borrow for a home. Mortgage lenders look at more than just your credit score. They flag high total credit limits and multiple recent account openings as lending risks. So lay off churning for a year if you're planning to buy a house. Other than that, keep at it!

GoT Season 2: The Book of Tyrion

Season 2 of Game of Thrones is largely based on the 2nd book in George R. R. Martin's series, Clash of Kings. If it were a Disney Star Wars spinoff, though, it'd likely have been called The Book of Tyrion Lannister. That's because while the series continues with an ensemble cast with many important characters, Tyrion is clearly the character Season 2 is most about. And unlike Disney's The Book of Boba Fett, Tyrion is actually an interesting character. (See my review of TBOBF S1E6: Boba Fett Writes a Book About Someone More Interesting.)

Why is Tyrion an interesting character? Well, for one, actor Peter Dinklage did a fantastic job. He won an Emmy for Outstanding Supporting Actor in a Drama Series in 2011 for season 2. He racked up several more nominations & awards in successive years.

[Minor Season 2 spoilers below.]

Tyrion is written well, too. In Season 2 his character progresses through a classic dramatic arc. He rises from a position of being relegated to third-class status even in his own privileged family to acquiring more and more power through his own wit and wile. Meanwhile he grows as a person, ultimately exhibiting true leadership and selflessness in a climax that surprises even himself. And, he suffers a tragic setback at the end of the season.

One of the most enjoyable scenes with Dinklage occurs early in the season. In a bit of deft camera work that matches Dinklage's deft portrayal, Tyrion tell three secrets to three advisors to ferret out which is disloyal to him. The camera cuts smoothly from one meeting to the next, Dinklage's lines matching perfectly as he repeats the common elements of the secrets and then delivers the unique bits that can identify who breaks their promise.

Tyrion's setback after the season climax is disheartening but ultimately satisfying. Sure, I would have preferred to see him ascend even higher as a result of his success. But him being dealt an unexpected setback is in keeping with the show's theme that terrible people win again and again while good people lose.