Ditch Your Branded Airline Credit Cards

[soccerluvof4]

I know alot of people myself included are always looking at the best credit cards. Saw this link today so Just wanted to pass on.

http://www.marketwatch.com/story/ditch-your-branded-airline-credit-cards-2014-03-04

[hodedofome]

I use the Capital One Venture Rewards card and like it. 2 points for every $1 that I spend. And I get to spend it on whatever I want, and they never expire. I don't like being held down to 1 specific airline or hotel chain.

It goes without saying in a forum like this, I pay off the balance every month...Duh. :)

[AlanStache]

“If you’re not loyal to a specific airline, then it’s worth considering ditching your branded airline frequent flier cards,”

Stopped reading when I hit this bit of idiocracy, why do you have a Delta credit card if you are not loyal to Delta?  Really, it might not be worth 100$/year in cc fees to get 5000 miles on AA and 8000 miles on Delta?  you dont say.  Personally I get a lot out of my Delta card and will continue to keep it, but I flew almost monthly last year.

[Mortgage Free Mike]

Even with some of the alternate cards, you really have to use the cards all the time to make them worth it. I have the Barclaycard. Loved the sign-up bonus, but sometimes I have no-fee cards (like Chase Freedom) that offer 5% cash back, so I use that.  My Barclaycard ends up being the backup card when no other card offers decent rewards.  It's free for the first year, but I'm not sure I'll keep it once that $89 fee kicks in.

[Trirod]

What it doesn't take into account is the signing bonuses of anything from 25,000-50,000 miles.  I agree that without those I don't get much benefit from the airline cards (you have to work hard to get a benefit much over 1c/mile, so instead I should just enjoy the 1.5% cash back on my Capital One card).  But if I sign up for a card and use it just the minimum amount to qualify for the sign up mile bonus, that's usually enough for a free domestic trip.

[windawake]

What it doesn't take into account is the signing bonuses of anything from 25,000-50,000 miles.  I agree that without those I don't get much benefit from the airline cards (you have to work hard to get a benefit much over 1c/mile, so instead I should just enjoy the 1.5% cash back on my Capital One card).  But if I sign up for a card and use it just the minimum amount to qualify for the sign up mile bonus, that's usually enough for a free domestic trip.

This is why I sign up for airline cards. The bonuses. The sweet, sweet signing bonuses.

I flew to Portland last summer for $10 and am flying to SLC in May for $50, both through Southwest. I also have 50k miles on Delta. Thinking about signing up for a new one soon. I'll be canceling my SW card soon since the annual fee is coming due. Travel hacking is amazing.

[chucklesmcgee]

“If you’re not loyal to a specific airline, then it’s worth considering ditching your branded airline frequent flier cards,”

Stopped reading when I hit this bit of idiocracy, why do you have a Delta credit card if you are not loyal to Delta?

Some casual infrequent fliers might get a Delta card for their everyday spending with the thought that it'll be a good deal that'll pay for a vacation flight to see grandma at Christmas, which it obviously isn't. That's my guess.

[AlanStache]

Some casual infrequent fliers might get a Delta card for their everyday spending with the thought that it'll be a good deal that'll pay for a vacation flight to see grandma at Christmas, which it obviously isn't. That's my guess.

So I might have been over thinking it?  yeah I do that.

[windawake]

Some casual infrequent fliers might get a Delta card for their everyday spending with the thought that it'll be a good deal that'll pay for a vacation flight to see grandma at Christmas, which it obviously isn't. That's my guess.

So I might have been over thinking it?  yeah I do that.

I'm not loyal to any airline. I go for the big signing bonuses wherever. It's all the same to me if each credit card results in 50k miles, it doesn't matter if I can't use all of them together, really.

[kyleaaa]

There are good reasons to sign up for airline cards. The Delta card for example: it automatically gives you Silver status, which means you don't pay to check bags ($50 savings round-trip every time you fly) and get priority boarding (worth nothing to some people and quite a bit to others). So if you fly more than 3 or 4 times per year but not often enough to get status, it can be very worth it.

And yeah, the sign-up bonuses are awesome.

[AlanStache]

Have not seen anything in the recent changes that would change the math on an airline card.  If it did not make financial sense before it still does not, if it did before then well it probably still does.

[Mortgage Free Mike]

AlanStache, I know  we've talked a lot about Delta, but Southwest devalued its points by 15% last year.  So while you are still earning 1 mile per dollar spent on the card, it isn't going far enough.

I will agree that if you only intend to use these cards during the promotional period, they're a good deal.

[meadow lark]

Loving my Southwest free companion tickets.  Everywhere I go until the end of 2014 I get a free ticket for my wife (or whoever.). And since I can pay with everything with points, I am enjoying a lot of $10 flights.

[Mortgage Free Mike]

@MeadowLark, What did you have to spend to get the companion ticket for the year? That's awesome!

[smedleyb]

In my opinion the most valuable currency in the miles universe are Chase Ultimate Reward points.   They are easy to acquire through multiple large sign-up bonuses and they transfer instantly to United, Southwest, Hyatt, and British Airways.   I would rank AMEX Membership Reward points second.

Capital One points are the weakest of the bunch.