Credit Cards and Rewards/Miles, help needed.

[Ulrike]

I have been wanting to try and utilize a credit card to my advantage. So far we have never done this. We fly frequently (approx 8 RT flights coast to coast in a year). We spend quite a bit of money each month, usually just with our Debit Cards. If we use credit cards we try to not pay any interest, and only use them for large purchases.

I am thinking about maybe getting a credit card that I would use on most ALL my purchases and then pay it off, not just at the end of the month, but when I got home from the store, pay it online, just so I wouldn't get stuck with a bill at the end of the month that might accumulate.
My fear is that I might have the card accumulate and I end up paying more than I normally would have for things, due to interest,late charges, etc.
I would use it for grocery stores and anything that came up, just so I could accumulate some freebies. For example I just made a $600.00 purchase on a new dishwasher and thought maybe I should be using a card for this. We go on trips and spend $2,000-3,000 and I am thinking surely some credit card out there could reward me for this?

Anyone have any advise for me or any experience with one card or another that that has been exceptionally rewarding for them.

I'd really appreciate some help. If you have to you may message me, if it breaks specific rules about names of cards?
Thanks

thanks

 

[DeniseM]

Hi and Welcome to TUG!

We use the Starwood AMEX and the Hawaiian Air Visa for nearly every dollar we spend and pay them off every month. So it works just like a debit card and we never pay any interest. There is a modest yearly fee ($40-$50.) When you sign up, you can usually get an incentive of 20K points, or more. You and your spouse can apply for and get separate accounts to double the incentives.

The Starwood AMEX earns 1 miles per dollar spent and you can transfer the points to most airlines. The conversion rate is 20K points:25K miles for most airlines, so you actually earn 1.25 miles per point.

We use the Hawaiian Air VISA for any merchant that doesn't take the AMEX - maybe 20% of the time. We go to Hawaii every year, so that's out back up card. We transfer most of our AMEX points to Hawaiian Airline miles.

Recently we got a Chase British Airways card. We didn't need another card, but this was the best signing incentive I have ever seen. We each got 50K miles for signing up and another 50K miles for charging $2,000 the first 3 mos. We got our cards Nov. 19th and we both already have the 100K miles in our Accts. These miles can also be used for BA's partners for flights in the US and other places, as well as with BA. I don't know if that deal is still available, but here's the info.

 

[Pat H]

Please tell me that you have been accumulating frequent flier miles for all those flights. Do you have an airline that you fly/prefer to fly most of the time? If so, then I would get the credit card for that airline plus the Starwood Amex. If you don't have a frequent flyer # with the airline you prefer and a Starwood Guest # sign up online. You will then start to get offers for the credit cards. Some of them are very lucrative.

The one airline that doesn't work well with SPG AMEX is United. Instead of getting 1 mile for each point you only get half and no 5,000 mile bonus.

 

[NWL]

If you are looking to earn just airline miles, I would suggest you get the credit card associated with the airline you use the most.

We use our card to pay for everything and pay it off in full every month. No debit cards here! The points/miles really add up. Don't worry about accruing interest on your card. Since you will pay online, just make sure you schedule your payment before the due date. Many card companies allow you to set up Autopay. Pick a date, and it will get paid on that date every month.

Cheers!

 

[Dori]

I wish I could get a Southwest cc., but it is not available to Canadians. You get a nice sign-on bonus.

Dori

 

[Rose Pink]

pointsjunkie can give you lots of information on collecting points from various credit cards and other sources. You can contact her by clicking on the "users list" located near the center of the darker blue bar just below the larger TUG BBS bar. Find her user name and then you can pm her.

 

[LisaRex]

If you are looking to earn just airline miles, I would suggest you get the credit card associated with the airline you use the most.

Seconded.

Most airline branded cards give you double miles for purchasing tickets on that credit card. So, if you routinely fly United, get a United Premier Visa. If you routinely fly Southwest, get the Southwest Visa.

Before you do sign up for the card, go to that airline's folder on FlyerTalk.com and search for the thread devoted to that credit card. Or start a new folder that says, "I'm new and want to get a United branded credit card. What is the best bonus mile promo out there?" Give them a brief synopsis of your travel patterns (e.g. we fly cross country 8 times a year -- my primary wish list item is: free upgrades to first class/free seats in coach/free trips to Cancun, which is where we own a timeshare) and they'll help steer you in the right direction. Warning: most cards offer first year free, but a lot of the really meaty cards charge over $100 a year in annual fees. Don't be scared off because your return on that can be very high

For instance, I've earned 12 RT flights to Hawaii and 2 RT flights to Seattle in the past 6 years just by charging everyday items to my Delta AMEX gold card and United Premiere cards, retail value over $12,000. I've paid out about $1300 in annual fees. Not a bad return.

Of course, the presumption is that you will pay off the card every month. If you are not disciplined enough to do that, whatever you've gained will be quickly eaten up by interest charges. Here's a system you can use if you're not sure you can be disciplined enough:

• Sign up for web banking for your checking account.
• Open up a savings account.
• Charge your everyday items to your new airline branded credit card and be sure to save the receipts.
• Each week, total up your receipts and transfer that amount of money from your checking account to your savings account.
• When the bill comes, you'll have "escrowed" enough money in your savings account to pay for it. Then either transfer that money back into your checking or just pay for that particular credit card directly out of your savings account.

I have other tips but don't want to overwhelm you.

 

[roadtriper]

check out www.freefrequentflyermiles.com they have lots of good info on how to maximize your miles. I think the Starwood Amex is the best bang for the buck in most cases, if your airline of choice is one of the ones you can do the 20K starpoint = 25K airline miles. RT

 

[lvhmbh]

Do be careful, though, if you go International. Alot of credit cards (most) charge 3% on purchases even if they are in American dollars. We have a Capitol One to use when we're in Aruba as they do not charge the 3%. We can transfer the miles over to a number of airlines. Otherwise, we have a dedicated AA Mastercard we use for everything - including down payments on cars, etc. I just got 4 RT tickets in Business for Aruba with my miles. Linda

 

[Ulrike]

Thank-You for your responses.Don't know why this concept has been so hard for me to grasp.

No, shamefully I say I have not accumulated any miles ever for any of the many flights we have taken, but hopefully this will be the year I can turn this around. So good to hear all your benefits.

We do not use a regular airline. We go with what is most convenient and cheapest at the time, so it has varied. Will the Starwood card still be best then? Today I will do some more research and undoubtly have more questions.

 

[DeniseM]

If you fly a lot of differet airlines, the Starwood AMEX is a good choice because you can transfer the points to most airlines. Here is a list of their airline partners.

I'd watch for a good sign-up bonus.

About 20% of merchants don't accept the AMEX, so I would have a back-up card from my favorite airline for the other 20%.

 

[Timeshare Von]

Recently we got a Chase British Airways card. We didn't need another card, but this was the best signing incentive I have ever seen. We each got 50K miles for signing up and another 50K miles for charging $2,000 the first 3 mos. We got our cards Nov. 19th and we both already have the 100K miles in our Accts. These miles can also be used for BA's partners for flights in the US and other places, as well as with BA. I don't know if that deal is still available, but here's the info.

That was a great deal and given that B/A partners with American Airlines and Alaska Air, it was one I couldn't pass up either! I am looking forward to my four free trips to Alaska in the coming year or two!!!

 

[Ulrike]

Let me ask, if this makes sense...(still trying to grasp the concept)

regarding the StarwoodAMEX....
If I get miles per dollor spent and I spend $3,000 dollars, will I earn 3,000 points? A trip from LA to NYC is 3,000 miles.Will I have then earned enough for a one way flight?

If I get 10,000 points upon signing up, have I just earned enough for 3 one way tickets from LA to NYC?, just by signing up, almost 2 RT tickets?

Could this be? Sounds too easy.

We spend a good amount of money per month, is this something I would want to put my bills on as well? or just general spending money?

 

[optimist]

Let me ask, if this makes sense...(still trying to grasp the concept)

regarding the StarwoodAMEX....
If I get miles per dollor spent and I spend $3,000 dollars, will I earn 3,000 points? A trip from LA to NYC is 3,000 miles.Will I have then earned enough for a one way flight?

If I get 10,000 points upon signing up, have I just earned enough for 3 one way tickets from LA to NYC?, just by signing up, almost 2 RT tickets?

Could this be? Sounds too easy.

We spend a good amount of money per month, is this something I would want to put my bills on as well? or just general spending money?

Not as easy as that I am afraid Airlines charge anywhere from 30,000 to 200,000 (or more) to give away free tickets. It depends on whether you are flying domestic or overseas and whether it's coach or first class. Still, if you use the credit card for all your purchases, including the small ones, it adds up fast.
The most important part is to pay it off religiously every month and not accumulate fees.

 

[lvhmbh]

You need to be really religious about using the CC for everything. I rarely use cash - except to give my g-son and my nail tech who doesn't accept CC's.

 

[Pat H]

My kids would get so embarrassed when I would charge $1.50 on my credit card. I kept telling them that they don't realize how fast those small amounts add up. They didn't seem to mind when I sent them on their honeymoons in First Class though!

Another hint - sign up your credit cards for Dining Rewards on one of the airlines. Where I live there are very few restaurants that participate however I have gone out with my sister and some friends the last few months for dinner and used my card to pay for dinner. Two of the restaurants gave miles which was a nice surprise.

AA is the only airline that gives you lifetime elite status based on ALL miles accumulated not just flying. Somehow I accumulated over 1 million miles over the years and I am now Gold for life. Most of those miles were from promos, credit cards and shopping. The only thing is I can't remember what I used all those miles for.

 

[DeniseM]

Let me ask, if this makes sense...(still trying to grasp the concept)

regarding the StarwoodAMEX....
If I get miles per dollor spent and I spend $3,000 dollars, will I earn 3,000 points? A trip from LA to NYC is 3,000 miles.Will I have then earned enough for a one way flight?

If you spend $3,000 dollars you will earn 3,000 points. If you transfer 20,000 Starwood AMEX points to most airlines, you will earn 25,000 FF miles.

Each airline has a chart that tells you how many miles a flight costs. Maybe at one time in the distant past, there was a relationship to the actual air miles and the FF miles, but there isn't any more. When you go to the website and book using FF miles, it will tell you the cost in miles, instead of the price in dollars.

If I get 10,000 points upon signing up, have I just earned enough for 3 one way tickets from LA to NYC?, just by signing up, almost 2 RT tickets?

Could this be? Sounds too easy.

No - 10,000 points might get you one ticket on a commuter hop between two cities that are close together. For example - I just looked last night and a round trip ticket from SFO to Honolulu on American Airlines is 35,000 FF miles.

We spend a good amount of money per month, is this something I would want to put my bills on as well? or just general spending money?

To earn the Max. FF miles possible, we put every cent we spend on a credit card - groceries, doctor, bills, travel, dining out, auto insurance, homeowners insurance, car registration - literally everything except our mortgage. We use it just like a debit card and pay it off every month.

 

[LisaRex]

First order of business is to sign up for a frequent flyer account for each airline that you frequent. And then remember to book future flights using that number, so that you can accumulate an easy 6,000 miles each time you fly. These miles are independent of the credit card points that you can also earn when you book flights.

So, say you fly on American Airlines cross country. You will earn 6,000 American Air miles each (3,000 miles each way) just for booking under your frequent flyer number. If you use your Starwood AMEX card to pay for the flight, then you'll earn additional miles on a 1 point per dollar basis. If the flight costs $400, you'll earn 400 StarPoints.

Starwood Amex may be the best card for you because it allows you to convert StarPoints to most airlines at a 1:1 ratio with a 25% bonus if you transfer 20k miles. Notable exceptions are United and Continental which have a not-so-great 1 StarPoint = .5 United mile. Another card that you might consider is the Gold American Express card, which has a higher fee but has nice benefits for people who travel a lot (e.g. free flight insurance). Go to FlyerTalk and ask if you want people's opinions about which card is better for you.

Both the Starwood Amex and Gold Amex allow you the freedom to shop around for the best deal among several airlines. However, I'd consider targeting one or two airlines that I'd try to book with exclusively in order to consolidate my miles in order to reach the 30k threshhold.

 

[Ulrike]

Thanks I didn't know FF miles were different than actual miles, so when it people said miles earned I thought they meant actual miles.

We own 5 homes, would there be a way to pay them all monthly by credit card?
That would be quite a chunk each month. Does the money have to be in the charge account for very long? (more than 5 minutes?) to earn points for it?
How would one do this? Does anyone pay their mortgages on a credit card/

This just somehow doesn't seem like it would be allowed? Sounds too good to be true?

I appreciate the responses and am getting the idea little by little, but just not 100% yet.

 

[LisaRex]

Thanks I didn't know FF miles were different than actual miles, so when it people said miles earned I thought they meant actual miles.

FF miles can be accumulated via flying or via spending on a credit card that accumulates miles per dollar spent.

We own 5 homes, would there be a way to pay them all monthly by credit card?

There are very few banks that will allow you to pay mortgages with credit cards. There's little incentive for either party to allow it.

But cell phone bills, utility bills, newspaper subscriptions, groceries, gas purchases...these will all add up, esp if you own five homes.

 

[Rose Pink]

I do not use my cc to pay utilities as the utilities charge a fee to do so--and that fee far exceeds the benefits from the cc. I use it for just about everything else though.

As others have pointed out, you can use your cc to earn ff miles and there are various ways to do it. I don't enjoy playing that game though and opted for the simpler (albeit maybe not as lucrative) cash back rewards. I get cash back for each purchase. Once a year that money is deposited into my savings account and I can save it or spend it any way I like. It is simpler for me to manage.

Some cash back cards (such as Discover) won't let you get your cash until you've accumulated a certain amount. That shouldn't be a problem if you use it for everything. Discover also has a system that lets you convert cash rewards into cash cards for various merchants. For example, if you have $50 dollars in cash rewards you could opt to get $50 in cash or you could use that to "buy" a $55 gift card to XXX merchant (various merchants).

I use a very simple cash back visa card tied to my credit union. This makes it very easy to pay off as I can log into my CU account and simply transfer funds. I pay it off more than once a month because if I wait until I have a large cc balance, I may not have enough in checking to cover it. I am not that disciplined.

When I was looking into cash back cards, AMEX seemed to pay out the best percentage-wise but AMEX is not accepted everywhere and that would cut into my overall percentage.

Many people game the system with more than one card but be aware that most cards have a tiered system. You have to spend a certain amount to get the best payback. So, with several cards, you have to build up each card to the best tier. For example, one card may pay 1/4% for the first $500 spent, 1/2% for the next $1000 and only after you've spent $2000 would you get 1%. Another card may have a similar system but with slightly different payouts. So $$ spent to build up on one card are dollars that could have been spent at the higher tier on the other card.

Some cards pay different % for different types of purchases.

 

[csudell]

Quicken Visa

I have had the Quicken Visa since 1998. What I like is that I can get $ off airfare as an alternative to a free ticket. For example, if I'm going to FL and airfare is approx $200. I would have to charge approx $25000 on most airlines for a free flight. With my Quicken Visa, I have to charge $16000 for 2 $100 vouchers. Still get my free flight. Used to be $6000 for every $100 off

in addition to travel rewards there are numerous other store gift cards and awards offered by the Quicken Visa.

 

[KarenL]

We like using our Wells Fargo reward points. We pay $19.00 a year to be able to add up points, one point per dollar spent. (Since we charge everything we can and pay off online during the month, no interest is paid.)
When we travel, we get $500.00 off any domestic (except Hawaii) ticket for 25,000 points. For Hawaii and international, it is 40,000 points for up to $800.00 off each ticket. Any airline, any time. However, we can't mix airlines on a trip.
Until a couple of years ago, booking was free, but now we pay $24.00 per ticket. Still a great deal, since it cost us a grand total of $48.00 last year to fly the both of us to Grand Cayman.
Karen

 

[gnipgnop]

I like Capital One. I use it for most everything ~ pay it off every month and earn miles as I spend. It can be used on any airline, no blackout dates and no expiration date. We used our miles for our Aruba trip and it was so simple to schedule the trip through them. I really like Capital One ~~~ no hassle!

 

[lobsterlover]

hello fellow canuck

I wish I could get a Southwest cc., but it is not available to Canadians. You get a nice sign-on bonus.

Dori

I am interested in what people in Canada use. I have Aeoplan and am so frustrated. At a year out I still can't get flights. I'm not willing to do anything but direct flights which is almost non-existant.
I was so excited West Jet has a new card but just found out it's only good for flights in Canada which we don't use.
We spend an average of 4 g's on our card and pay it off every month...actually forgot one month, called and begged off and they let it go.
What are Canadians using?