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Prologue:
A Financial Guide for U.S. Immigrants, Milemoa

Immigrating to the United States brings new opportunities but also challenges with an unfamiliar financial system.
From the concept of credit scores to complex financial products and tax laws different from Korea, it is easy to feel financially illiterate during the early stages of settlement.
To bridge this information gap and build a stable foundation for life in the U.S., the Korean immigrant community ‘Milemoa’ serves as an important guide, going beyond a simple website.

Milemoa originally started as a personal blog focused on credit cards and travel information, but it gradually grew into a private community.
The community has become a key venue for “financial cherry-picking,”
where members share ways to earn and efficiently use airline miles and hotel points by taking advantage of sign-up bonuses offered by credit card companies.
The site’s unique structure is that the operator generates revenue through credit card referral commissions and does not run any separate advertisements or sponsorships.
In this way, Milemoa functions as an oasis for Korean immigrants, sharing practical financial knowledge for settling in the U.S.

Part 1.
In-depth Analysis of the Milemoa Community: Value Beyond Simple Information Gathering

Milemoa’s Identity:
A ‘Productive’ Financial Cherry-Picking Community

Milemoa is known among its members as the “American version of Sasasa” (people who live smartly), where information on financial cherry-picking using credit cards is actively shared.
One of the community’s most significant features is its unique membership base.
The majority of users are in their 40s and 50s and tend to see themselves as highly educated or professionals.
Because of this, Milemoa is highly regarded as a place to quickly obtain high-level information necessary for American life, such as healthcare, taxation, and immigration documents.

Users have also described Milemoa as “the only site in the US where Koreans can have productive discussions with relative politeness, without extreme slander or criticism”.
This is an important cultural asset that differentiates Milemoa from other Korean communities.

The members’ high level of education and professional backgrounds are a key driver in forming a network for exchanging high-quality information on all aspects of American life, beyond just sharing mileage tips.

The Productive Community Culture and Its Other Side

The value of information in the Milemoa community dramatically increases due to the expertise of its members.
For example, if an immigrant posts a question about tax issues or the healthcare system, members working in those fields often provide detailed answers quickly.
However, an important premise applies to this information exchange: the ‘AYOR (At Your Own Risk)’ principle.
This means that all information shared on Milemoa is not official professional advice, and the user alone is responsible for any consequences resulting from a bad decision.

This principle highlights the duality of Milemoa. On the one hand, it enables the free exchange of information, but on the other, it requires users to be clearly aware of the information’s reliability and limitations.
Due to the nature of anonymous communities, there is no way to verify if the person providing the answer is truly an expert in the field.
Therefore, users should not blindly trust the information on Milemoa but use it as a reference to gain ideas. For important decisions with legal or tax implications, it is essential to consult with a certified professional.
Critics outside the community also point out that some users boast about excessive spending or unethical behavior, such as buying and returning items just to get card points.
To use the information on Milemoa wisely, it is necessary to consider these critical perspectives as well.

Part 2.
U.S. Credit Cards 101: From Building Credit to Smart Use

Understanding the U.S. Credit System: Why Credit Score Matters

In the United States, a credit score is a key indicator of an individual’s financial health.
It not only affects credit card approval but also influences mortgage and car loans, and even job applications.
For new immigrants with no credit history, building a credit score is the most important first step toward settling in the U.S.
The most common way to build a credit score is to get a credit card and use it responsibly.

Choosing Your First Credit Card as a New Immigrant

Getting a regular credit card can be difficult for a new immigrant with no credit history.
The most realistic alternative in this situation is a Secured Card.

Everything About Secured Cards
A secured card requires a security deposit of at least $200 and up to $5,000, which then becomes your credit limit. Using the card and making timely payments on it reports to major credit bureaus, helping you build a credit history.
Popular secured cards include Discover’s ‘Discover IT Secured Credit Card’ and Bank of America’s Secured Card.
The Discover secured card has no annual fee and offers a 100% cash back match at the end of the first year. Both cards also provide a free FICO credit score, allowing users to monitor their credit score changes directly.

The Unwritten Rules of Credit Card Issuers: Know the ‘Rules’ and See the Opportunities

In the U.S. credit card market, each issuer has its own unique card approval rules. Understanding these rules is an essential strategy for effectively accumulating points.

• Chase’s ‘5/24 Rule’
  Chase’s ‘5/24 Rule’ is an unwritten rule that states if you have opened five or more personal credit card accounts in the last 24 months, your application for a new Chase credit card will be automatically denied.
  This rule includes cards from other issuers, so a common strategy for starting a credit card points game is to get Chase cards first. Recently, this rule has become so official that Chase customer service representatives directly mention it.
  It’s also important to note that cards where you are an ‘authorized user (AU)’ can also count towards the 5/24 rule. For new immigrants, who are often added as AUs to a family member’s account to build credit, this can unintentionally hinder Chase card approvals.
  If you exceed the 5/24 rule due to an AU card, you can call Chase’s reconsideration department and explain that the account is not a primary one.
  
• AMEX’s ‘Lifetime Rule’
  American Express (AMEX)’s principle is to give a sign-up bonus for the same card product only ‘once in a lifetime’.
  Therefore, once you’ve received a bonus for a card, you won’t be able to get it again even if you cancel the card and reapply later.
  However, an exception to this rule can be found in personalized offers sent via email or mail, which often do not explicitly state this rule.
  
• Citibank’s ‘8/65 Rule’
  Citibank also has its own application rules. You can only apply for one of their personal credit cards within 8 days and a maximum of two within 65 days.
  These rules are important guidelines for beginners to avoid application denials and build a planned card portfolio.

Part 3.
Mastering Miles/Points: A Strategic Approach for Maximum Value

Understanding the Points Ecosystem: Value Beyond Cash

The key to financial management with credit cards lies in how you use the points you’ve accumulated. While most points can be converted into cash (typically $0.01 per point), the true essence of miles and points is finding “sweet spots” by converting them into airline miles or hotel points to unlock value far exceeding their cash equivalent. This goes beyond simple savings and allows for premium travel and services that would otherwise be unaffordable.

Dissecting the Three Major Point Systems

The three major point systems in the U.S. credit card market—Chase’s UR, AMEX’s MR, and Citibank’s TYP—each have different characteristics and usage strategies.

• 1. Chase UR (Ultimate Rewards): Expanding Value with a ‘Transformer Card’
  
  Chase UR points offer various redemption options. Points can be cashed out ($1,000) or used as travel credits through the Chase travel portal ($1,250) , and they can be converted to airline miles for high-value redemptions.
  
  A crucial concept here is the ‘Transformer Card.’ UR points earned from Chase Freedom cards cannot be directly converted into airline miles.
  However, if you own a ‘Transformer Card’ like the Chase Sapphire Preferred, you can transfer the points from your Freedom card to the Sapphire card, allowing you to convert them into miles for partner airlines like United Airlines or British Airways.
  
  This process significantly expands the value of your points and is an essential strategy for immigrants starting their points journey.
  
• 2. AMEX MR (Membership Rewards): Journeying to Find a Sweet Spot
  
  AMEX MR points are a loyalty program for AMEX Centurion Design cards, with the advantages of no earning limit and the ability to combine points from family cards.
  
  MR points can be transferred to various global airline mileage programs. The true value of AMEX MR is in finding “sweet spots” through these transfer partners, such as business-class tickets on specific routes. For example, a savvy traveler might convert AMEX MR points to Qatar Airways Q-Suites to book a business-class flight from the U.S. to Asia at an extremely efficient point redemption rate.
  This kind of usage can lead to experiences that improve one’s quality of life beyond a simple monetary benefit.
  
• 3. Citi TYP (ThankYou Points): The Strength of a Broad Partner Network
  
  Citibank’s TYP points, earned on Citi cards, have the strength of being convertible to a wide range of airline and hotel partners.
  They are especially useful through partnerships with airlines like Virgin Atlantic and Turkish Airlines, offering broad redemption options.
  Furthermore, premium cards like the Citi PremierMiles card offer benefits that exceed the annual fee, such as free access to airport lounges 25 times a year and bonus miles and vouchers based on annual spending.

Part 4.
Financial Management and Taxes: Overlooked Tax Knowledge

The Relationship Between Financial Management and Taxes

In the United States, all income is taxable, and income from financial management is no exception. While the tax status of credit card sign-up bonuses and cash back is often debated, cashback and mileage rewards are generally not considered taxable income.

However, cash bonuses, such as interest on a deposit, may be taxable. Another form of income commonly encountered by immigrants in the U.S. is ‘tips,’ which must also be reported for tax purposes.

U.S. Tax Reporting Basics: A Detailed Guide for Tip Income

Tip income is defined as cash or non-cash payments given voluntarily by a customer. Both cash tips and tips received via credit card payments must be included in your total income for tax reporting. This is not just about paying taxes; it is an important way to prove your ‘legal income,’ which is necessary for financial activities like applying for a credit card or buying a house.

Here’s how to report tip income: If an employee receives more than $20 in cash tips in a month, they must report that amount to their employer by the 10th of the following month.

The employer then withholds federal income tax, social security tax, and Medicare tax from the reported tip income. This process ensures that tip income is officially recognized. If you have tips that were not reported to your employer, you must report them separately using

Form 4137 on your personal tax return and pay the employee’s portion of the social security and Medicare taxes yourself.

Epilogue:
The Financial Management Mindset for Successful U.S. Settlement

The path to financial management in the U.S., particularly within the Milemoa community, is not just about seeking short-term gains but about building long-term financial stability.
A new immigrant should first focus on building a credit score with cards like secured cards.
Once a credit foundation is established, you can start the ‘points game,’ strategically using credit card issuer rules like Chase’s ‘5/24 rule’ to accumulate points.
Finally, the ultimate goal of miles and points is to wisely convert them to premium experiences that enhance your quality of life.

However, throughout this entire process, it is crucial to always remember the Milemoa community’s ‘AYOR (At Your Own Risk)’ principle.

The information you get online is for reference only.
For important decisions concerning your personal financial situation and goals, you must consult with a certified financial advisor or tax professional.
In this sense, financial management in the U.S. is not merely about saving and accumulating money; it is a journey that requires a proactive mindset of designing and taking responsibility for your financial future.