US Airways Dividend Miles - $89/yr for 10k US miles - a good deal?

Hi all,

I'm pretty new to the whole miles and points thing, and recently was approved for the US Airways Mastercard (the one with the 40k mile bonus). The $89 annual fee is waived for just the first year, but cardholders are also credited 10k miles once per year on the anniversary of the account opening. Assuming I use the card infrequently (I prefer debit, if possible), I'd be spending $89 a year for a little over 10,000 Dividend miles.

So what does everyone think? The annual fee is pretty steep, but in the larger picture, does it make sense? Thanks for your input.

Hi all,

I'm pretty new to the whole miles and points thing, and recently was approved for the US Airways Mastercard (the one with the 40k mile bonus). The $89 annual fee is waived for just the first year, but cardholders are also credited 10k miles once per year on the anniversary of the account opening. Assuming I use the card infrequently (I prefer debit, if possible), I'd be spending $89 a year for a little over 10,000 Dividend miles.

So what does everyone think? The annual fee is pretty steep, but in the larger picture, does it make sense? Thanks for your input.

These are PQMs -- preferred qualifying miles, toward preferred status on US.

If you don't plan on flying US as a paid or paying customer, they are worthless. They'll show up on your web page and then disappear. If, on the other hand, you will be flying, then they can be of a lot of value. You can make Silver by flying 15,000 miles and getting the 10,000 miles via use of the card. In that case, it's the best $89 you will ever spend.

But look at what I bolded above ... have you found an offer that does not require you to spend to get the 10,000 PQMs? Most of us are passing $25,000 through the card annually to get the 10,000 PQMs.

These are PQMs -- preferred qualifying miles, toward preferred status on US.

If you don't plan on flying US as a paid or paying customer, they are worthless. They'll show up on your web page and then disappear. If, on the other hand, you will be flying, then they can be of a lot of value. You can make Silver by flying 15,000 miles and getting the 10,000 miles via use of the card. In that case, it's the best $89 you will ever spend.

But look at what I bolded above ... have you found an offer that does not require you to spend to get the 10,000 PQMs? Most of us are passing $25,000 through the card annually to get the 10,000 PQMs.

Sorry, but you are incorrect. The 10K miles awarded each year after paying the annual fee are RDMs, not PQMs. Those 10K RDMs turn into PQMs only if you spend $25,000.

In effect, for keeping the card, you are buying 10000 RDMs for $89 (or .89cpm). Combine this with the 5K discount for US metal redemptions, and it's a brilliant reason to keep the card.

In fact, I don't use the card at all. I keep it simply for those 10K miles/year + Grand Slam hit.

Sorry, but you are incorrect. The 10K miles awarded each year after paying the annual fee are RDMs, not PQMs. Those 10K RDMs turn into PQMs only if you spend $25,000.

In effect, for keeping the card, you are buying 10000 RDMs for $89 (or .89cpm). Combine this with the 5K discount for US metal redemptions, and it's a brilliant reason to keep the card.

In fact, I don't use the card at all. I keep it simply for those 10K miles/year + Grand Slam hit.

+1. Unfortunately, Biggie is incorrect. The 10,000 miles is worth WAY more than $89. Just try and buy 10k miles from US directly; its $350 (not considering any of the seasonal bonus specials). Add in the 5k mileage redemption discount, the first class checkin (occasionally invaluable), the $99 companion certs (although difficult to redeem) and the "zone 2" (really zone "3") boarding, and for $89, its well worth it.

The way I best justify it is that, every 2 years, you're getting a domestic R/T for "free".

Don't forget the club passes, though with AmEx Platinum (for any flight) or foreign *G (while flying US/UA), they are superfluous.

With US Airways consistently selling miles for under 2cpm (right now, 100K goes for $1881, so about 1.88 cpm), I don't see the point of actually using the card. It's theoretically better to get a 2% cash back card, then use that money to buy US miles (and pocket the 0.12cpm difference). Add in the Grand Slam, and you can achieve <1cpm for a large # of miles.

Sorry, but you are incorrect. The 10K miles awarded each year after paying the annual fee are RDMs, not PQMs. Those 10K RDMs turn into PQMs only if you spend $25,000.

In effect, for keeping the card, you are buying 10000 RDMs for $89 (or .89cpm). Combine this with the 5K discount for US metal redemptions, and it's a brilliant reason to keep the card.

In fact, I don't use the card at all. I keep it simply for those 10K miles/year + Grand Slam hit.

+1. Unfortunately, Biggie is incorrect. The 10,000 miles is worth WAY more than $89. Just try and buy 10k miles from US directly; its $350 (not considering any of the seasonal bonus specials). Add in the 5k mileage redemption discount, the first class checkin (occasionally invaluable), the $99 companion certs (although difficult to redeem) and the "zone 2" (really zone "3") boarding, and for $89, its well worth it.

The way I best justify it is that, every 2 years, you're getting a domestic R/T for "free".

Live and learn. I guess the 10,000 have been of sufficient value to me that I never thought of them in their alternative form. (Which raises an interesting question -- can you ask for them not to be converted into PQMs? Say you have miscalculated [as I did a couple years back]. You'll make, say, Gold, BIS, but even with 10,000 PQMs from the card, you won't make Platinum and the Gold/Platinum difference is not worth the Buy up .... The 10K do get awarded as RDMs when you hit $25,000 spend and then are subtracted as they transmute into PQMs. Could you call and get them turned back into RDMs?)

Where I think we all agree (so far) is that it is an excellent value. As I have posted elsewhere, although I too find the on-board sales pitch for the card annoying, I also find it amazing that more people don't take it. You all have given me one more reason for thinking this.

Live and learn. I guess the 10,000 have been of sufficient value to me that I never thought of them in their alternative form. (Which raises an interesting question -- can you ask for them not to be converted into PQMs? Say you have miscalculated [as I did a couple years back]. You'll make, say, Gold, BIS, but even with 10,000 PQMs from the card, you won't make Platinum and the Gold/Platinum difference is not worth the Buy up .... The 10K do get awarded as RDMs when you hit $25,000 spend and then are subtracted as they transmute into PQMs. Could you call and get them turned back into RDMs?)

I think what it means by "converted to PQM" is that you do not gain an additional 10K RDM when you get the additional 10K PQM.

For example, if your balance is 100K RDM and 65K PQM, upon the card anniversary/$89 annual fee, you will go from 110K RDM to 110K RDM. Once you hit $25K spend, you'll go from 65K PQM to 75K PQM without a decrease in RDM.

Where I think we all agree (so far) is that it is an excellent value. As I have posted elsewhere, although I too find the on-board sales pitch for the card annoying, I also find it amazing that more people don't take it. You all have given me one more reason for thinking this.

I haven't flown US since it was America West, but I find tremendous value in this card, more so than the DL AmEx (as a DL elite, at that!).

I think what it means by "converted to PQM" is that you do not gain an additional 10K RDM when you get the additional 10K PQM.

For example, if your balance is 100K RDM and 65K PQM, upon the card anniversary/$89 annual fee, you will go from 110K [100K? -- BF] RDM to 110K RDM. Once you hit $25K spend, you'll go from 65K PQM to 75K PQM without a decrease in RDM.

Now I am both incorrect and confused. Maybe there are more than one set of rules? I have never received RDMs on the anniversary date. I have always hit $25,000 spend before then. Then, as described above: My DM account shows a 10,000 mile addition; then a 10,000 mile subtraction; then 10,000 PQMs are credited. (This has happened like this for three years running ...)

Also, although for the life of me I could not find my T&C on line, I did find the T&C for the current offer attached to my account, at least, and it reads like this:

Preferred Miles and Award Processing Fee Waiver: When a Cardmember spends at least $25,000 or greater in new Net Purchases (which are not later credited back or rescinded) ("Purchase Requirement") within each calendar year, a total of 10,000 of those miles will be converted from base miles to Preferred miles 4 to 8 weeks after the Purchase Requirement has been sent. You can only qualify for maximum of 10,000 Preferred Miles per year through this credit card program.

If I read this correctly -- a big if -- I am reading something different from what other posters are experiencing and from what I am experiencing, although it is a little closer to my experience (difference being that this suggests a subtraction of 10,000 "base miles" already rung up, as they are converted to Preferred miles).

When did you receive your card?

My current US Airways MC from Barclay's, opened in September 2011, gives 10K on anniversary (after paying the $89 fee).

In any case, after $25K spend, you should have a net zero change in RDMs and plus 10K PQMs.

When did you receive your card?

Early 2010, I think ....

My current US Airways MC from Barclay's, opened in September 2011, gives 10K on anniversary (after paying the $89 fee).

This is 10K RDMs ... would it still do that if you had hit $25,000 spend?

In any case, after $25K spend, you should have a net zero change in RDMs and plus 10K PQMs.

I agree with this and, indeed, this is what happens in my case.

Again, for information, [I don't mean to be argumentative] ... How does this square with what you posted earlier, which suggests that there is an annual net +10,000 RDMs if you don't do the spend? [And how does any of it square with those T&C terms I posted above?]

Hi all,

I'm pretty new to the whole miles and points thing, and recently was approved for the US Airways Mastercard (the one with the 40k mile bonus). The $89 annual fee is waived for just the first year, but cardholders are also credited 10k miles once per year on the anniversary of the account opening. Assuming I use the card infrequently (I prefer debit, if possible), I'd be spending $89 a year for a little over 10,000 Dividend miles.

So what does everyone think? The annual fee is pretty steep, but in the larger picture, does it make sense? Thanks for your input.

Let's put it this way. Even during the current 100% bonus for buying miles through US, you'll spend $75 to get 4000 miles. Add in the 5K discount for booking award flights while you maintain the card, then booking an award flight only once during the year means you get 15K miles for $89--as opposed to buying 16K US miles during the best buying promo of the year for approximately $300.

This is not a daily spend card, but it's a card that you definitely hold onto for these and other benefits.

Again, for information, [I don't mean to be argumentative] ... How does this square with what you posted earlier, which suggests that there is an annual net +10,000 RDMs if you don't do the spend? [And how does any of it square with those T&C terms I posted above?]

Considering the ~18-month difference in when we opened cards, we may have different flavors of the same Mastercard. I wasn't heavily in the miles game in early 2010, so I don't know what Barclays/US was offering back then. These were the benefits when I signed up ... notice #2 and #7:

1. Bonus Miles. You will earn 40,000 US Air Dividend miles after the first use.

2. Anniversary Miles & Annual Fee. You will earn 10,000 bonus miles on the anniversary of your account opening date every year, provided you pay the $89 annual fee.

3. Two $99 companion tickets annually.
$250 minimum base fare (before taxes and fees) on the first ticket
Blackout dates
14 day advance purchase requirement
Valid only for roundtrips within the continental US (excludes Hawaii and Alaska) and Canada

4. 5,000 Mile Award Discount on award travel for any round trip or open-jaw itinerary operated by US Air.

5. Priority check-in and boarding. Cardholders get Zone 2 boarding and access to Preferred check-in.

6. Free US Airways Club Pass.

7. 10,000 Preferred Miles & Award Processing Fee Waiver for spending $25,000 per calendar year: 10,000 miles are converted to Preferred or elite qualifying miles and the award processing fees are waived.

Thanks. I guess I am not getting 2, and was mixing it up with 7, which we are both getting. Anyhow, very useful ... think I'll get in touch with Barclay's and see if they will upgrade me !

Hi all,

I'm pretty new to the whole miles and points thing...I prefer debit, if possible...

Sorry if I sound rude--I'm not intending to, just telling it like it is--but unless you are doing some heavy duty flying, like once a week, at least--you're not going to earn many miles, if any, by using a debit card.

Thanks. I guess I am not getting 2, and was mixing it up with 7, which we are both getting. Anyhow, very useful ... think I'll get in touch with Barclay's and see if they will upgrade me !

Unless you're very emotionally tied to your current card, I'd apply for a new one and cancel the old one. You can get the 40K bonus again (especially since it's been over 2 years).

Biggie. There are two different cards. I have both. In January I first tried to get the anniversary miles added as a perk to my, then, only card with the threat that i would cancel prior to renewal. Not even the supervisor would budge. I then applied for a second card, through a 40k link with the anniversary bonus clause, and I was initially denied. I called the reconsideration line mentioned that i wanted to more easily separate expenses and was quickly approved.
I assume I will use the companion tickets and lounge passes so I have kept both cards. I will cancel my original card on or before the renewal date.
Millionmilesecrets has a a good piece on the card in his best list.

Biggie. There are two different cards. I have both. In January I first tried to get the anniversary miles added as a perk to my, then, only card with the threat that i would cancel prior to renewal. Not even the supervisor would budge. I then applied for a second card, through a 40k link with the anniversary bonus clause, and I was initially denied. I called the reconsideration line mentioned that i wanted to more easily separate expenses and was quickly approved.
I assume I will use the companion tickets and lounge passes so I have kept both cards. I will cancel my original card on or before the renewal date.
Millionmilesecrets has a a good piece on the card in his best list.

Wow. Excellent to know. On the case ... well, maybe after the weekend ...

Unless you're very emotionally tied to your current card, I'd apply for a new one and cancel the old one. You can get the 40K bonus again (especially since it's been over 2 years).

Yeah, thanks -- my mind was slowly moving in this direction, too -- but a push always help. I do have some emotions attached to the card, but more along the lines of mild fear ....

Sorry if I sound rude--I'm not intending to, just telling it like it is--but unless you are doing some heavy duty flying, like once a week, at least--you're not going to earn many miles, if any, by using a debit card.

Well, let me rephrase - I'd prefer credit if possible, since of course I wouldn't gain too many miles via debit (although the SunTrust DL card is helping out there). I'm a recent college grad just getting started with building my credit history, so I don't want to rush out and apply for a bunch of cards right now. Additionally, a lot of the cards that I've looked at have a high (for me) minimum spend amount and rather steep annual fees - neither of which I can justify paying at the moment. The main reason that I signed on for this card is the 40k miles hit without minimum spend, as well as the fact that the annual fee is waived for the first year, which gives me time to decide whether or not to keep it. So thanks to all here for your responses!

With US Airways consistently selling miles for under 2cpm (right now, 100K goes for $1881, so about 1.88 cpm), I don't see the point of actually using the card. It's theoretically better to get a 2% cash back card, then use that money to buy US miles (and pocket the 0.12cpm difference).

But you're not including the value of (1) the companion certs, which have saved me hundreds of dollars and (2) the 10,000 PQM's upon spending $25,000 (if you spend that much, of course).

But you're not including the value of (1) the companion certs, which have saved me hundreds of dollars and (2) the 10,000 PQM's upon spending $25,000 (if you spend that much, of course).

(1) the companion certs do not require any spending to activate. They're merely another benefit of holding the card.
(2) I did not include the 10K PQMs, but I'd only put reasonable spend on the card if I needed the PQM. (Plus, as a Delta flyer, I'd rather spend $25K on the DL AMEX :D)

My point was that the card is a great card to have simply for the anniversary bonus + benefits, but not a good card to actually put spend on if you're after US RDMs. The PQMs are a decent benefit, but even if I needed those, I wouldn't put a penny over $25K on the card.

The PQMs are a decent benefit, but even if I needed those, I wouldn't put a penny over $25K on the card.

Agreed. That's why I have two of these US MC's. I spend just over $50K/year, so I get 20,000 PQM/year.

the $99 companion certs (although difficult to redeem)

Huh? My gf and I both have the card and have been redeeming two separate certs annually for four years running. Not difficult to redeem at all. Just avoid those black-out dates.

the $99 companion certs (although difficult to redeem)

I've never had a problem with them save for some interesting blackout rules (e.g., a redeye flight where the plane arrived in the morning of a blackout day not being permitted).

I've never had a problem with them save for some interesting blackout rules (e.g., a redeye flight where the plane arrived in the morning of a blackout day not being permitted).

I only mention the difficulty in redeeming because I never received mine (discussed in length on the cert. thread) after calling 2x and having them "send out replacements" twice, after signing up for the card on 2/8/12. Now they've cut me off from receiving more, although I still haven't received them!

So, are they difficult to redeem in reality? from what i've read, no. I'm just being bitter :)

Anyone have luck getting them to waive the annual fee for year 2 or later by threatening to cancel it?

Anyone have luck getting them to waive the annual fee for year 2 or later by threatening to cancel it?

I dont want to hijack the thread, but since you asked...

you mean actually getting Barclay's " we don't have supervisors when you want something" CS to provide tangible customer service?

After they told me I was "cut off" from receiving replacement welcome kits after the second time asking, and that there "were no supervisors" to escalate to following my request to have the annual fee suspended due to failure to receive promised items, I hung up and haven't had the mental energy or reason to return to the filipino jungle to be told "sucks to your assmar." That was in April.

After i'm done studying for the bar exam and have the mental capacity to deal with Barclay's, i'll give them a call back. Unfortunately, I have a feeling that they'll say since there's no proof that I didnt receive the package (other than not utilizing the certs), I'm just trying to horde them. /rant.

Hi all,

I'm pretty new to the whole miles and points thing, and recently was approved for the US Airways Mastercard (the one with the 40k mile bonus). The $89 annual fee is waived for just the first year, but cardholders are also credited 10k miles once per year on the anniversary of the account opening. Assuming I use the card infrequently (I prefer debit, if possible), I'd be spending $89 a year for a little over 10,000 Dividend miles.

So what does everyone think? The annual fee is pretty steep, but in the larger picture, does it make sense? Thanks for your input.

I think you can do much better actually -- try the starwood spg card. At least you can transfer 20k points for 25k USAir miles.