[To see all four sections of our coverage on frequent flier miles, visit the "Before You Go/Airfare" index of articles by clicking here.]
Buy to Fly: Using Credit Cards to Earn Miles and More
Many credit card companies, car-rental agencies, utilities, and other vendors also offer frequent-flier miles with a particular airline for every dollar you spend. Consumer Reports Travel Letter recommends that you compare the price of goods that offer miles with similar merchandise from other vendors, to see if you're really getting a deal.
Follow the One-Penny Rule--Restaurants, car dealerships, and online stores all try to seduce patrons by offering frequent-flier miles with purchase. When do the bonuses outweigh slightly higher prices? Frequent-flier guru Randy Petersen says to think of miles as worth a penny apiece. Getting a 1,000-mile bonus with purchase, then, would only be worth a $10 increase in the price of an item.
Mile Earning Credit Cards
Charge cards, credit cards, and a few debit cards provide frequent-flier bonuses merely for shopping and paying your bills. They're no-brainers for accumulating thousands of miles.
Charge cards are the safest of the bunch, as you pay off your bill in full each month. Credit cards let you carry a balance, on which you must pay interest. Debit cards should never be used to purchase travel--they take money straight out of your checking account, and offer no protection or dispute mechanism in case a travel supplier does you wrong.
Diners Club and American Express charge cards can be used to earn miles on many different airlines. Diners Club has the most airline partners, including all the major players. Cardholders get a thousand-mile bonus each month they use the card for their first year, and access to 70 first-class airport lounges. But relatively few merchants accept Diners Club cards, and the card costs $80 per year.
American Express has been known for decades for their traveler services, including a top-rank travel agency and worldwide offices that hold members' mail. With the optional Membership Rewards program, AmEx members get points that become miles on Continental, US Airways, Delta, Southwest, and several foreign carriers. Membership Rewards points can also be used for store gift certificates, hotel stays, magazine subscriptions, and car rentals. The program costs $40 per year on top of the normal American Express annual fee of $55 (the fee is higher for gold and platinum cards).
Of the airline cards, Delta's special American Express credit card offers an especially tasty deal--2 miles per dollar for most household purchases. Southwest's offers the quickest domestic round-trips, with one free ticket per $16,000 charged.
All airline credit cards have annual fees, but there's a way around that. Amtrak's Guest Rewards Visa (tel. 800/780-5561; www.amtrakguestrewards.com) has no annual fee and accumulates one point per dollar spent. Five thousand points equals 5,000 miles on United, Continental, or Midwest Express. But you get only 500 points for your first purchase, a much smaller bonus than airline cards offer.
The Starwood Preferred Guest American Express Credit Card (tel. 800/297-1000; www.americanexpress.com) has no fee for the first year, with a $30 fee in following years--still lower than airline cards. Its points can be converted one-for-one into miles with Alaska, America West, Continental, Delta, Northwest, United, and US Airways. When you hit 20,000 miles, they tack on an extra 5,000 as a thank-you. But there's no sign-up bonus at all, unless you stay at Starwood hotels and resorts.
Mileage-Earning Credit Card Roundup
Student-Only Cards--Many credit card companies run special travel programs for students; call your credit card company for more information. If your lack of a credit history prevents you from getting a "grownup" credit card, United Airlines and American Express offer three good options. (See below.)
United's CollegePlus program gives 2,500 frequent-flier miles to students making their first and third round-trips on United, plus a whopping 10,000 at graduation. Students also earn 5,000 miles per 50 hours' worth of community service with seven charities, including Habitat for Humanity and the Make-a-Wish Foundation. Best, CollegePlus is free. Sign up at www.collegeplus.com.
AMERICAN EXPRESS BLUE FOR STUDENTS
- tel. 800/600-2583
- www.americanexpress.com
- Type of Card: Credit card, can pay over time
- Annual Fee: None
- Credit Line: $8,000
- Miles Earned: 14 round-trip, discount travel certificates on Continental Airlines
AMERICAN EXPRESS CARD FOR STUDENTS
- tel. 877/237-2069
- www.americanexpress.com
- Type of Card: Charge card, must pay in full each month
- Annual Fee: $55
- Spending Limit: None
- Miles Earned: 14 round-trip, discount travel certificates on Continental Airlines
- Other Bonuses: Eligible for American Express Membership Rewards
UNITED COLLEGE PLUS VISA
- tel. 888/211-3095
- www.collegeplus.com
- Credit Limit: $5,000
- Type of Card: Credit card, can pay over time
- Annual Fee: None
- Miles Earned: Accident insurance, Earns 1 mile per $2 spent
Airline-Independent Cards--Several companies, such as NextCard, FirstStar, WebMiles, and First Union offer credit cards that earn travel rewards. But only two of them are as flexible or earn tickets as quickly as the airline credit cards. Diners Club and American Express both allow you to transfer points directly into your regular frequent-flier account.
AMERICAN EXPRESS MEMBERSHIP REWARDS
- tel. 800/843-2273
- www.americanexpress.com
- Type of Card: Charge card, must pay in full each month
- Annual Fee: $40 for holders of existing American Express cards
- Miles Earned: One "point" per dollar spent; 1,000 points equals 1,000 miles at Delta, US Airways, Hawaiian, Virgin Atlantic, Korean Air, AeroMexico, LatinPass, Mexicana, ANA; 1,250 points equals one Southwest credit; 1,050 points equals 15 El Al Matmid points; hotel and car rental partners as well.
DINERS CLUB
- tel. 888/923-4637
- www.dinersclubus.com
- Type of Card: Charge card, must pay in full each month
- Spending limit: None
- Annual Fee: $80
- Joining Bonus: Earn up to 12,000 miles for joining (1,000 miles per month for first year, provided you charge one purchase each month).
- Miles Earned: Earn 1 mile for every dollar spent; partnered with all major airlines plus Aloha, AirTran, ATA, Frontier, Hawaiian, Midway, Midwest Express.
- Other Extras: Access to more than 70 airport lounges.
Airline-Specific Cards--All cards earn 1 mile per dollar spent on all purchases, unless otherwise noted. Most cards offer occasional special incentives to award miles for balance transfers as well.
All non-metallic cards (meaning cards that don't have "gold," "silver" or "platinum" in their names) have mileage caps unless otherwise noted, usually 50,000 to 60,000 miles per year; it's unlikely normal shoppers will run up against these caps. (If you're spending more than $60,000 on a credit card annually, you should get a platinum card anyway.) Metallic cards have higher credit limits, unless otherwise noted.
ALOHA AIRREWARDS VISA AND MASTERCARD
- tel. 800/342-2778
- www.fhb.com/pb_alohacard.htm
- Type of Card: Credit card, can pay over time
- Annual Fee: $25
- Miles Earned: 1.5 Aloha Pass miles per dollar spent
- Gold Card: $55 membership fee; 1,000 extra bonus miles per Aloha flight
ALASKA AIRLINES VISA
- tel. 800/274-5060
- www.bankofamerica.com/creditcards
- Type of Card: Credit card, can pay over time
- Annual Fee: $45
- Joining Bonus: 3,000 miles
- Other Cards: Gold card: $45 annual fee. Platinum card: $75 annual fee; 5,000 bonus miles upon sign-up and 2,000 extra bonus miles per year; 2 miles per dollar spent on Alaska and Horizon tickets; one $50 companion ticket voucher per year; two one-way first class upgrades per year; two airport lounge passes per year.
AMERICA WEST FLIGHTFUND VISA
- tel. 800/274-5060
- www.bankofamerica.com/creditcards
- Type of Card: Credit card, can pay over time
- Annual Fee: $45
- Joining Bonus: 2,500 miles upon approval
- Platinum Card: $75 annual fee; 5,000 bonus miles upon approval; 1,000 extra bonus miles per year; no mileage cap; 2 miles per dollar spent on America West tickets; two free one-time passes for two people each to airport lounges
AMERICAN AIRLINES CITIBANK AADVANTAGE VISA AND MASTERCARDS
- tel. 800/359-4444
- www.citibank.com
- Type of Card: Credit card, can pay over time
- Annual Fee: $50
- Joining Bonus: 3,000 miles earned after first purchase
- Other Cards: Gold card: 5,000 bonus miles upon joining; $85 fee. Platinum card: 7,500 bonus miles upon joining, $125 fee, maximum of 100,000 miles per year.
CONTINENTAL AIRLINES VISA AND MASTERCARD FROM CHASE
- tel. 800/245-9850
- www.chasecardsonline.com
- Type of Card: Credit card, can pay over time
- Annual Fee: $45
- Joining Bonus: 4,000 miles
- Platinum Card: $65 annual fee; 6,000 miles upon sign-up. World MasterCard and Visa Signature Card: 2 miles per dollar for tickets booked directly through Continental; free domestic companion ticket, no sign-up bonus, $65 annual fee.
DELTA/AMERICAN EXPRESS SKYMILES CARD
- tel. 877/376-1237www.americanexpress.com
- Type of Card: Charge card, must pay in full each month
- Annual Fee: $55; free if you have another fee-paying American Express card
- Joining Bonus: 5,000 miles
- Miles Earned: One mile per dollar spent, but earn 2 miles per dollar spent on Delta tickets; at supermarkets, gas stations, home improvement stores, drugstores, and the U.S. Postal Service; and when you use the card to pay your wireless phone bill.
Other Cards: --Options card: no annual fee; 1,000 bonus miles on first purchase; .5 miles per dollar spent; 1 mile per dollar on Delta purchases. Gold card: $85 annual fee, $30 for existing AmEx cardholders; 10,000 bonus miles for joining; 100,000-mile annual limit on non-Delta purchases. Platinum card: $135 annual fee; 15,000 bonus miles for joining; no annual mileage limit.
HAWAIIAN AIRLINES HAWAIIAN MILES CARD
- tel. 800/729-6106
- www.hawaiianair.com/hawaiianmiles/memberservices/mc.asp
- Type of Card: Credit card
- Annual Fee: $24
- Joining Bonus: 5,000 miles
- Other Extras: Three people can combine purchases into one frequent-flier account.
- Platinum Card: $50 annual fee; 10,000-mile sign-up bonus
MIDWEST EXPRESS MASTERCARD
- tel. 800/388-4044
- elan.midwestexpress.com
- Type of Card: Credit card, can pay over time
- Annual Fee: $45
- Joining Bonus: 1,000 miles earned with first purchase
- Gold Card: $70 annual fee; 2,500 bonus miles upon joining; double miles on Midwest Express tickets
NORTHWEST WORLDPERKS VISA CARD
- tel. 800/360-2900
- www.usbank.com/worldperks49
- Type of Card: Credit card, can pay over time
- Annual Fee: $55
- Joining Bonus: 3,000 bonus miles with first purchase
- Other Extras: No mileage cap, but all miles earned after 50,000 per year are earned at half speed
- Gold Card: $90 annual fee; all miles earned after 60,000 per year are earned at half speed.
SOUTHWEST AIRLINES RAPID REWARDS VISA
- tel. 800/792-8472
- www.firstusa.com/xcards4/ccards/southwest_airlines
- Type of Card: Credit card, can pay over time
- Annual Fee: $39
- Joining Bonus: 4 bonus credits upon sign-up
- Miles Earned: One Southwest credit per $1,000 charged
- Platinum Card: $59 annual fee
UNITED MILEAGE PLUS SIGNATURE VISA
- tel. 888/819-3529
- www.firstusa.com
- Type of Card: Credit card, can pay over time
- Annual Fee: $60
- Joining Bonus: 5,000 bonus miles for joining
- Other Extras: Free one-way upgrade certificate; free $25 discount certificate
US AIRWAYS DIVIDEND MILES VISA
- tel. 800/274-5060
- www.bankofamerica.com/creditcards
- Type of Card: Credit card, can pay over time
- Annual Fee: $50
- Joining Bonus: 3,000 bonus miles upon approval
Other Cards:--Gold card: $70 annual fee; 4,000 miles upon approval. Platinum card: $90 annual fee; 7,000 bonus miles upon sign-up; 2 miles per dollar earned on US Airways tickets; $99 companion certificate; one-time airport lounge pass; 10,000 extra miles if you spend $25,000 per year.