Using RadPad for rent to earn miles or points

PayPal has been around for as long as I can remember. Even before I had a proper understanding of how to pay a bill with a check I knew PayPal could pay my eBay bills. As I read, studied and applied my knowledge of collecting credit card points, cash back programs and cheap travel I would inevitably come across an article identifying rent as an easy way to earn miles if done properly. 

I had long seen a loophole with PayPal where you could purchase a PayPal My Cash card up to $500 from CVS with a Credit Card, deposit the My Cash funds into your PayPal and then pay your Credit Card bill off with the money you borrowed to purchase the My Cash cards to begin with. Do this 5 or 6 times on a brand new Credit Card to hit the minimum spend and now you have a cool 25,000+ points or miles in your account. Unfortunately, while this tactic is seemingly obvious, but ultimately frowned upon, it at least made me wonder what I could possibly do to maximize my credit leverage to pay my seemingly ever increasing rent.

This year I have a couple of credit card allegiances. Chase and their Ultimate Rewards pointsAlaskan Airlines with their easily churnable credit credit cards, companion pass and stopover availability, and Hilton HHonors now that they status matched me to Diamond through early 2017!

Why RadPad? As a “millennial” each and every day seems more and more difficult to function without technology. I can remember many years ago traveling by bus in San Francisco to Vons to grab my groceries. Thanks to Amazon Fresh I no longer have to leave my couch. In that same respect trying to locate a mailbox to mail a poorly scribbled upon check seemed damn near impossible, so the pursuit of paying rent from my couch became a must.

Enter RadPad, the service that lets you deposit funds into their system and they will mail a check for you (Hallelujah!). 

However, there’s a catch. While using a debit card will charge you no transaction fee, a credit card on the other hand will hit you up for 2.5% per payment (yuck!)

There must be some sort of loophole, correct?

Yes! You are correct!

Until recently I was very much unfamiliar with PayPal Debit Cards. In fact, I often laugh at friends or coworkers when they jump to use their debit card to pay for a meal at lunch or an entertainment purchase; I find no value in them. However, the Paypal Debit Business Card will actually allow you to Earn unlimited 1% cash back on eligible purchases, which yes, you guessed it, includes PayPal My Cash Cards

PayPal My Cash Cards can be purchased up to $500 per card and you can load up to $4,000 into your PayPal account each month. There is that pesky $3.95 fee per activation, but the 1% cash back using the PayPal Debit Card will cover the fee.

(It is important to note, the PayPal Business Debit card is easy to apply for and receive, their is no hard pull on your credit in order to obtain this card. All you need is a business account *also very easy*.

The reason for obtaining the Business account vs. the Personal account is the 1% cashback you will receive with the Business Debit Card. With the Personal Debit Card you will only receive .5% cash back.)

Let me put this all into play for you..


Steve’s rent is $1,500/mo. 

 

Steve purchases $1,500 worth of PayPal My Cash Cards, depositing funds over a 3 day period. Each card charges $3.95 for activation, putting him at a loss of -$11.85.

Steve then takes his PayPal Business Debit Card and deposits his funds into his RadPad account. With 1% cash back Steve has received $15 for this transaction and has recouped his -$11.85 in fees + netting an additional $3.15 back into his wallet.


That’s nice Steve, but what about the points?

Thanks for asking, voice inside my head.

I told you I was dedicated to Chase Ultimate Rewards, Alaskan Airlines and Hilton HHonors this year. Below is the point value return over a 12 month period, assuming I am making my PayPal My Cash purchases at CVS (I am sure with the Chase cards I can receive higher category bonus elsewhere, but CVS is the most convenient store for me to stop at and I value my time more than spending it in a car/bus to get an extra point or two…).


Chase
I will receive 1% cash back each month: $1,511.85 x.01 = $15.12 + $3.15 for PayPal DC = $18.27
$18.27 x 12 months = $219.24
TOTAL $219.24 cash back per year

or

I will received 1 point for every $1 spent: $1,511.85 x 12 months = $18,142.20 per year = 18,142 points
Plus, $3.15 for PayPal DC x 12 months = $37.80
TOTAL 18,142 points + $37.80 cash back per year

Photo courtesy of Markus Spiske

Photo courtesy of Markus Spiske


Alaskan Airlines
I will receive 1 mile for every $1 spent: $1,511.85 x 12 months = $18,142.20 per year = 18,142 miles
Plus, $3.15 for PayPal DC x 12 months = $37.80
TOTAL 18,142 miles + $37.80 cash back per year

Photo courtesy of Andrea Vincenzo Abbondanza

Photo courtesy of Andrea Vincenzo Abbondanza


Hilton HHonors
I will receive 3 Points per every dollar spent: $1,511.85 x 3 = 4,536 points
4,536 x 12 months = 54,427 points
Plus, $3.15 for PayPal DC x 12 months = $37.80
TOTAL 54,427 points + $37.80 cash back per year

Photo courtesy of Loic Djim

Photo courtesy of Loic Djim


Action Steps:

  1. Apply for PayPal Business Debit card
  2. Purchase PayPal My Cash card up to $500 with preferred Credit Card (*$3.95 activation fee per card)
  3. Load Paypal Business account with PayPal My Cash cards
  4. Fund RadPad with Business Debit card (*receive 1% cash back to cover PayPal $3.95 activation fee)
  5. Pay Rent through RadPad
  6. Collect Miles/Points, Rinse & Repeat monthly

Now, if you happened to grab a Chase Freedom, Ink or Sapphire, or a Alaskan Airlines Visa Signature, or even a Hiltons HHonors Visa Signature you’d be just adding these totals on top of the beautiful bonus you hit with your minimum spend anyhow. Check the links above for best redemptions for each award.

Hopefully this helped you decide to put the check book away and find your way over to RadPad


If you have found this post useful or have any other suggestions please share and add your comments below.

Thank you!

Steve