Citibank AA vs. Diners Club
 

I am a very heavy Visa/MC credit card user. For the past 12+ years I've been Premier or better on United. Therefore, I've never had to worry about the cap on miles earning potential for credit card purchases using my United Visa. My business travel has decreased some and the places that I travel have made it necessary for me to travel mostly on Southwest (I still hate not getting a seat and no chance for an upgrade, but I've learned to appreciate the things that Southwest does well--including frequent flyer tickets that can be used on virtually any flight and a companion pass for my spouse).

Anyway, I do have a Southwest Visa. But, once you have over 100 credits in a year, you can't earn another companion pass and you have to be able to use your free tickets within 1 year. So, I'm pretty much maxed out on my Southwest Visa.

That leaves me with a need for an additional Visa/MC. I have a measly 13,000 miles on AA. I've thought about applying for the AA credit card that is free for 6 months and gives you 12,000 free miles with first purchase. That would net me enough for a free ticket. And, now that I need additional Visa/MC spending room, I've thought about just keeping the AA MC and racking up around 60,000 miles/year. (There are 6 in my family so I need to factor in the need for 6 tickets when planning frequent flyer redemption).

The other option that is almost out there is the new Mastercard Diners Club combination card. It has unlimited earning potential on many airlines and several hotel chains. But, it is $90/year and you have to pay a fee to transfer miles to airlines.

I'd appreciate any thoughts on the relative merits of the AA MC vs. the new Mastercard Diners Club card. (I already use the SPG AMEX, but I need more spending room for Visa/MC purchases). I'd also appreciate any thoughts on other alternatives that I haven't considered.

Thanks.

SDFLYER

But the fee is small and the DC (already) is a great card to have because you can convert into ANY U.S. airline's program. Once the MC thing kicks in, this will be, by far, the best card to have. The car rental coverage is also much better they cover everything.

The only advantage to AA Citi is the reduced award thing that comes along, but I have never had much interest in it.

Go with Diners...

After the first six months free with the AA Mastercard, it's only a few dollars cheaper than the Diners Club card.

Diners comes with 12k miles (actually 24k Club Rewards points) signup bonus in the first year.

Diners will be the #2 card as far as I'm concerned once the Mastercard acceptance is phased in (and provided they don't devalue the Club Rewards program)... #1 will still be the Starwood Amex.

Why not do both? For now, take the AA card with its 12k bonus miles and 6 months free. Use it for 5 months or so, and then get the Diner's Club. By then, you'll hopefully be able to use Diner's everywhere that MC is accepted. You'll be able to earn 12k AA + 24k DC in sign-up bonuses.

Pros for DC: car rental insurance, largest/most flexible program in terms of air/hotel partners, exceptional customer service, and - by midyear - accepted almost everywhere.

Cons for DC: annual fee, slightly-reduced earning power ($1 = 0.913 FF miles).

Your volume will dwarf the statistical impact of the annual fee. The flexibility of DC is worth the slight hit on earnings, IMHO.

Another wonderful benefit is the ability to use the Diners International travel lounges around the world.

And, of course (says BigLar the Freeloader), when you apply for your Diner's card, any number of us here have referral numbers in our profiles. :D

Would you explain your thinking here? Transfer fees?

As you'll see from discussions in the DC forum, if you use someone's referral number, please let them know, as DC may "forget" to award them the points unless they are reminded.

Yes - not sure if the program has changed since I dropped DC in '03, but at that time it was a 190 pt fee per 2000 pts. converted. (I think...it's possible that my math is slightly off. :eek: )

There were no fees at the time for hotel conversions. Not sure if there are today. You also had the option to pay cash in leiu of the fee - so you could get Cash + 2 DC = 1 FF.

In the grand scheme of things, the fee isn't a big deal - the power of Diner's is liberating orphaned miles, so an extra few hundred points to get a dormant account up to award level is minor. Still...I found the fee a tad bit annoying. Other cards that make far less money off of both the merchants and cardholders can afford to give out one Starpoint or one FF mile per dollar with no garbage fees. Why can't Diner's?

Is it possible to transfer DC points to family members to top off their accounts (if they live at same address?)? If so, huge benefit. If not, not a deal killer as you can't do that easily anyway.

I am interested in DC for several reasons:

1. It is the only way that I know of to earn Starwood points using a Visa or mastercard. Unfortunately, the transfer to starwood nets 60% of the original dollar value. Nevertheless, it is still the only option of which I am aware.

2. In spite of the fee to transfer points to frequent flyer programs, I wonder if the flexibility of using the miles on multiple carriers is worth the cost. Plus, as I understand it you can make unlimited purchases per year (not true without status on all the majors using their credit cards). I'm wondering if DC points would allow you to call several carriers and find the one that is available for an award ticket on the dates that you want and then transfer the DC points to that airline. If so, then I think I'm a DC convert.

SDFLYER

Most of the information about transferring points can be found in FAQ section of the relevant website(s).

First of all - transferring to family members varies by FF program, but yes it is possible for some programs. When I got out of Diner's in 2003, I moved miles into several of my wife's FF accounts. The FF program dictates that rule, AFAIK.

Second - yes, I've called around to airlines to line up an award seat, and then made the DC conversion to top off the account to reach the miles necessary. I think this was easier a few years ago when airlines would hold award seats for you for several weeks: now some carriers have tightened up the time they will hold a seat for you without ticketing. Still, if DC can expedite the transfer and the airline is giving you a week or two, you can get it done.

I agree with pederson's advice: go check out the FAQ, the Diner's site, and probably your best source for info: the Diner's board here on FT. I'm a year-plus removed from the program, but I will probably get back in after the Mastercard integration is complete.

IIRC, exception of AA and BA, you can transfer to any of your family members (anybody?, I haven't tried). AA and BA require both accounts names match.

I've transferred Diners points to various orphan accounts in different names (US, UA, NW, WN). Have yet to find a program that does not allow this although I have not needed AA or BA.