Credit Card Rewards Programs

[CreativeForce]

So I know there are a ton of credit card rewards programs out there and I was just wondering which people have and if they are happy with the rewards system. My wife and I are looking to get a card that we would use only for vacation purposes. We figure if we're going to be putting anywhere between $5,000-$7,000 a year on this, we might as well get something back for it.

 

So I put it out there; Do you have a credit card with a rewards system? If so, how do you like it and how quickly can you build up a reward?

[Chroniq]

Hey Creative Force... I hope you don't mind me giving me .02 on this topic even though I'm not an Alvey....

 

 

For starters.. You plan to charge 5k -7k on this card a year (and of course pay it off in full every month or the interest far outweighs the rewards). If that is your target spend a year you have to get a card with no annual fee. The reason being is at 1 percent rewards it would take a card with a $50.00 annual fee $5000.00 in spend to break even.

 

That being said there are numerous cards that will give you a precise 1 percent cashback with no annual fee including my favorite in this area the Amex Blue Card.

 

There are numerous ways for you to obtain more than 1 percent back, but with your expected spend most airline cards won't be advantageous for you. I'd look towards some of the Discover card products that offer up to 5 percent cashback on gift certificates at popular retailers. If that interests you please let me know and I'll give you details.

 

If you can spend 20k a year on a card that opens up a whole new realm of choices, The Starwood Card is considered one of the best travel cards. American Airlines Visa may also be a great choice depending on how you travel.

 

If you care to elaborate on how you use your credit card as well as how you travel I can give you a lot more feedback. Flyertalk is a great site as well with active forums on this topic.

[scooterdoug]

I have the Southwest Airlines Rapid Rewards Visa. I think it's a great card. Whether it would be of any value to you would depend on: a) how much you use the card, and b) your feelings towards SWA.

 

You see, the card gives you 1 "credit" for every $1,200 you spend. Earn 16 credits within a 2 year time frame, and you get an "award", which consists of two flight coupons good anywhere Southwest flies. They also have a lot of partners, which can earn you credits faster when you do business with them. The annual fee is $59. So, if you use the card for one year and earn one award, then that benefit will far outweigh the annual fee. Personally, the money I have saved with many free flights seriously outweighs the annual fees I have paid.

 

However, even if you do earn awards quickly, your opinion of SWA matters as well. Many people can't stand their unique seating system and feel that the airline is nothing more than "Greyhound in the sky". Personally, I have no problem with it. I check in for my flight early (so that I'm ensured a window seat towards the front of the plane), bring food with me, and keep myself entertained with my iPod and a few good books. Southwest used to be really bad with being on time, but that has changed dramatically.

 

So, in short, if you don't mind flying Southwest and will put enough money on the card, then the Southwest Airlines Visa would be a great choice. Of course, if you want to fly international, then SWA won't be any help to you at all. Hope this helps!

 

-Doug

[gisco]

I have a Disney Rewards card from Chase. Earns 1% with no annual fee. I'm putting about $3k a month on it. I charge everything I can then pay it off every month. Paying interest would kill any benefit the rewards give you. I used some of the points last weekend for my Park Hopper ticket and a bunch last June when I was in Disney World to help pay for the hotel.

[ParkTrips]

I personally would avoid skymiles cards and opt for strait cash back. Why limit yourself with a reward that they tell you what to use it on, when you can and can't use it, and that some days your reward will be more valuable than others? Cash is cash - it can be used anywhere, for anything, and is fairly consistent in value. Hell, use the cash to book hotels or flights

 

And I definitely agree that rewards cards work best if you don't keep a balance on the card.

 

I get 1%, no annual fee, and I put about 1200 a month on the card - what's that work out to, $144 a year? Free money as long as I don't pay interest!

[larrygator]

I have both a Jet Blue Card (AmEx) and a Continental One Pass VISA.

 

Without the JetBlue card your Jet Blue point balance gets zeroed out every 12 months, I would never fly enough in one year to earn a free flight. For a fee of $40 a year I never lose my points. It took 18 months for me the earn my first free flight ($360 value for $80 in annual fees) and expect to earn another flight flight every 4 years ($300-$400 value for $160 in annual fees). This made sense for me since I generallly fly JetBlue 2-4 times per year.

 

With Continental I earned only about 50,000 miles on my own through years of having the card. Signing up earned me a free 25,000 and within 2 years (with a couple of Continental flights and charging $1,000 a month) I finally earned a free flight too Europe (it was selling at $1,100).

 

I used to be a cash guy, only using my credit card for bigger ticket items over $200, but now I charge practically every little purchase. This includes groceries, all dining including lunch at the company cafeteria, public transportation to commute to work even my weekly collection to my church now goes through my credit card.

 

However, you have to make sure you pay off your bills every month all the interest nullifies any benefits.

 

The credit cards will offer this "free" money because they know not many people have the self discipline and/or financial savvy to come out ahead.

[Chroniq]

Hey Larry, just a heads up. The Jet Blue True Blue Program was relaunched in October. The points system is different, points no longer expire with or without the jet blue card.

 

You have to make a choice on what to do with your old true blue points.

A. Free Magazines...

B. Buy Enough old Points from True Blue for either a one way or round trip (your choice)

C. Tell Jet Blue to convert new points you earn in the future to old points , all though this is usually the least advantageous way to go.

 

I have the Jet Blue Card By the way.. Very Happy with it..

 

 

Another card to mention for high spenders, is the American Platinum Charge Card .. It's $495 a year but if you travel frequently it pays for itself.. For instance we are at the Portofino Bay Hotel at Universal- Through the platinum "fine hotels program" We paid $100 less a night than the lowes posted rate, were upgraded to a suite for free, received full breakfasts each day and access to their club lounge, and received a $100 credit towards any food and drink expenses...

 

So in this one trip that annual fee practically paid for itself.

 

Also they double all manufacturers warranties. So if this Mac breaks after the original warranty expires, american express will fix it and I didn't have to pay $179 for AppleCare.

 

 

If anyone has any specific questions about cards.. Please let me know!