Originally Posted by
srdshelly
This is the key distinction. The OP seemed to be looking at it in terms of which credit card to actually use on an ongoing basis for purchases - is it worthwhile to use a mileage earning card, or are there better choices? That's a decision that has no one answer.
There is an answer, it just depends on a comparison of the various cards available.
Originally Posted by
srdshelly
The key to mileage credit cards these days, however, is really the bonuses that can be earned upon acquiring one, usually with some minimum spending requirements. These pay off handsomely for most people willing to devote a small amount of time to them, and form the basis for most of the buzz on this website. I just got back from a free trip to China due to one card bonus, and am planning my next one to Russia due to another.
This is my question, do they really pay off handsomely, or do they just seem to? If you had a no annual fee 2% cash back on everything card + a 5% cash back in certain categories card, would you have been better off than getting miles? It seems that your miles were accumulated from initial bonuses, are these annual fee cards, how much do you pay, and are you planning on keeping them open indefinitely or are you willing to take the hit to the credit score when you cancel them after a few years? If you have to keep getting new cards to keep getting bonuses then this is decreasing your credit score also which can have a financial impact.
I think it seems to everyone that getting these airline cards is a good deal and it's nice to accumulate miles and get free trips, and there is a big marketing component, but it could actually turn out to be a bad deal and more expensive than what you would have gotten elsewhere.