First time reader and poster, so my apologies if this has been covered.

Situation - we live in MA, my son's girlfriend will be attending grad school in Salt Lake City. he plans on visiting every 6 weeks or so.

Questions - 1) I am looking for suggestions for credit cards that accrue AIR MILES. (2) looking for the best FF program. Most of the major airlines go BOS --> SLC and Southwest goes Providence to SLC so they are all options.

Experience, opinions, or references to other postings all will be appreciated. Either a posting here or direct email would be great.

Thanks,
Mike C.

Welcome to FlyerTalk, HPMC!

This is a frequent topic on these boards. Usually there is not enough information in the original post, so follow-on questions are necessary. I'd like to submit some questions that can be referenced by future threads on the same topic - and I would appreciate any additions to cover what I've missed. Some of these you've already answered, so please bear with me, and some of these you may not know. Also, some of these may seem somewhat personal - please ignore what you deem inappropriate:

1) How much do you plan to charge annually? How much of this spending do you think will be with supermarkets, gas, home improvement stores, the Post Office, drug stores and on wireless phone bills ? What percentage can be put on Amex? Diners? Will you be buying plane tickets on the card? If so, for what airline(s)?

2) What frequent flier programs do you want to build? Any interest in hotel awards? If so, which ones?

3) What kind of awards will you use the miles for? Domestic or international coach/business/first class tickets, upgrades? Any particular award or destination you would be saving for?

4) Do you have any orphan accounts that could be topped off?

5) Do you normally carry a balance on your cards?

6) Are you looking to apply for a personal loan, mortgage, or refinance any time in the near future?

7) Do you have an aversion to annual fees, or would you be willing get a card with such a fee provided it's reasonable given the benefits of the card?

Can anyone else add to this?

HPMC - the more information you can provide, the better we can help you.


[This message has been edited by singlemalt (edited 03-25-2003).]

1) How much do you plan to charge annually? How much of this spending do you think will be with supermarkets, gas, home improvement stores, the Post Office, drug stores and on wireless phone bills ? What percentage can be put on Amex? Diners? Will you be buying plane tickets on the card? If so, for what airline(s)?

>>> I am thinking that he will charge as much as he can. Since he lives at home with us he doesn't have most of the standard Homeowners bills but things like Gas; Dinner; Airline tickets; other tickets; health & beauty stuff; clothing - all come to mind.

2) What frequent flier programs do you want to build? Any interest in hotel awards? If so, which ones?

>>> Part of what i am trying to help determine is which FF program(s) he should build. Not much interest in hotels.

3) What kind of awards will you use the miles for? Domestic or international coach/business/first class tickets, upgrades? Any particular award or destination you would be saving for?

>>> Domestic travel, coach. Primary destination will be Salt Lake City, Utah from either Boston or Providence.

4) Do you have any orphan accounts that could be topped off?

>>> You mean like a FF account that had been established and forgotten about?

5) Do you normally carry a balance on your cards?

>>> No Balance, he WILL pay them off!

6) Are you looking to apply for a personal loan, mortgage, or refinance any time in the near future?

>>> No.

7) Do you have an aversion to annual fees, or would you be willing get a card with such a fee provided it's reasonable given the benefits of the card?

>>> if a card with a nominal fee offered considerably more than a free one he would pay a fee.

>>> THANKs for the great questions!

regards
Mike C.

Since you'll probably know the dates of travel in advance for these, you can buy leisure tickets in the $200 - $250 range. So, using 25,000 miles for such a ticket puts the value of the miles at 1 cent per mile.

I suggest fogetting the mileage credit card and getting a cash back card that pays straight 1% back, no annual fee, and pay cash for the trips.

Essentially, you can earn 1 mile per dollar and get a free ticket for each $25,000 you spend on a mileage card. Or, on a cash back card, you can earn $250 for each $25,000 you spend, then buy a ticket that also earns miles for flying. If you fly enough, he can even earn status on the airline, allowing more benefits and miles to be earned.

Many cash back cards tier their programs (first so many K get 0.25%, and it increments up thereafter) and makes you wait til the end of the year to claim your cash. BankOne/FirstUSA has a no annual fee Free Cash Rewards Visa that gives 1% cash back on all purchases (no minimum), and you can claim your cash each time you accrue just $25 in rewards.

Edited out completely - my reply was almost the same as channa's. I concur - at his spending level, forget about a mileage CC and get a rebate card.

[This message has been edited by singlemalt (edited 03-25-2003).]

Starwood American Express in my opinion. Minimal charge for the card; if you transfer 20,000 points to an airline, they give you a 5000 mile bonus; if you don't use the points for airline tickets you can use them for free nights or upgrades at starwood hotel; they are affiliated with so many airlines. Possibilities are endless. Just my own thoughts! Remember, just because he will fly mostly domestic to see his girlfriend doesn't mean he wouldn't use a free ticket for a different itinerary.

[This message has been edited by Marysunshine (edited 03-25-2003).]

The 1% cash back award is a good idea, but be careful to read the fine print. A lot of cards talk about 1% cash back but that is only after you reach a threshold of spending. For the first $1000 of spending you only get something lik 0.25% back.

One card that I use that does give 1% back is the REI visa. It has no annual fee, although you do have to be a member of REI (a recreational/camping goods co-op). There is a one-time fee to join (about $20 IIRC).

The downside to this is that the 1% is collected over a calender year and then issued to you as a dividend that you can spend at a store. You can get cash, but have to wait until July 1st. So for a purchase you make on Jan 1, you will need to wait 18 months for the rebate.

Another option is to go for the starwood preferred guest card from AmEx. The upside is that you get 25,000 miles for every 20,000 points you earn (one point = $1 spent) on most airlines (United Airlines is a notable exception). So you get a choice of airlines, and more bank for your buck. Additionally if you sign up with this link you get an extra 4000 points to start you on your way.

The downsides are that it is an american express card so it is not taken everywhere and has an annual fee of $30.00 after the first year.

It seems to me that you want to earn miles or points on the airline you will actually be using. Some considerations:

Southwest: It usually has the cheapest flights, especially if you can plan ahead. At one flight per 6 weeks, you just make the 8 flights per year needed to get a free flight. And there are other ways to earn credits towards flights (telephone service, etc - do a word search on "Southwest" on each page of my web site below).

Other airlines: They are usually more expensive. However, those same 8 round trips a year between the two locations you mention will get you about 33600 miles. It takes only 25000 miles to get a local ticket. And those miles could be very useful in getting a more expensive ticket for free to, say, spring break in Mexico. The miles on most other airlines do not expire so long as you add to them at least once every three years. For most U.S. airlines there are many more ways to earn miles by doing stuff other then flying than there are for Southwest. (Again, see my web site below.)

Credit cards: Southwest has a fee credit card which you can find on its web site. But if you choose a program other that Southwest, there are lots of ways to get miles using not only the airline's credit card, but also others. You don't have to limit yourself to one credit card, so long as they are free or offer lots of up front miles for the fee. Many of the hotel credit cards are free and offer up front points convertable to miles on many airlines. (See my credit card section. I am in the process of adding more on fee credit cards that offer cheap up front miles.)

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Free Frequent Flyer Miles

Southwest being the cheapest is a common misconception. Right now, PVD-SLC is pricing at $198 + tax on Southwest. It's also $198 on UA, AA, NW, CO, US, and DL. Since the fares are identical, I'll take the assigned seats and Elite-qualifying miles on a major. On BOS-SLC, AA is offering $236 + tax. Southwest does not offer BOS service.

Southwest may have a reputation for lower fares, but often the majors are also competitive with their fares.

If all are flown on discount tickets on the same major airline, you will hit first level elite status at 25,000 miles flown (50,000 on DL), which gives you further benefits and mileage accrual. CO and NW offer free upgrades to Elites and a 50% mileage bonus.

<edited previous incorrect Southwest info>

As previously stated Southwest will require 8 roundtrips (4 during double credit period) for a free ticket.

On AA, you earn 1,000 bonus miles for online booking, giving around 5200 miles per roundtrip and a free domestic ticket (25K miles) every 5 paid trips. On the 5th trip he would earn AAdvantage Gold status, where he would earn 25% bonus miles plus upgrade credits. This would give him a free domestic ticket with AA every 4 paid trips. AA also offers more legroom in coach and many more options for using the mileage earned than Southwest. AA flight schedules are likely more convenient than Southwest also.

Delta flys non-stop from BOS-SLC but will likely be more expensive than flights from PVD.

For a credit card that offers 1% cash back without any minimums or tiers to reach, try the no annual fee Chase Freedom Card which gives the cash back monthly as a credit on your next statement and also offers 3% back on gas purchases.



[This message has been edited by ddavis (edited 03-25-2003).]

Wouldn't that be nice. Alas, you get only one credit for the one way ticket, regardless of the number of stops or plane changes. From http://www.southwest.com/rapid_rewards/about_rr.html

"Rapid Rewards counts credits, not long miles.
If you take just eight (8) roundtrips (or receive 16 credits) within 12 consecutive months to receive a free Award Ticket on Southwest Airlines, no matter how far you fly or what fare you pay." And

"Want to earn a free ticket even faster?
Our award winning double credit promotion lets you fly free after just 4 roundtrips! Simply purchase your travel at southwest.com and fly by June 6, 2003 to be eligible for this offer. (Our schedule is currently open for booking through September 8, 2003.) Changes to reservations booked on southwest.com may void this offer."



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Free Frequent Flyer Miles

Do you have a link for the chase feedom card? I couldn't find it on their web site.

Is there an annual fee? And does it pay the 1%/3% from the first dollar spent?

Sorry, thought it was a segment based thing but haven't flown WN in years or ever had a connecting flight with them.
With that info it appears even more certain that AA (or another mileage based FF program) would earn free flights faster than Southwest with more benefits at equal cost.

I received the Chase Freedom Mastercard as a replacement for my Chase Shell Mastercard. Shell is now partnered with Citibank. The Shell Citibank card has a 5% rebate on Shell Gas and 1% on other purchases. I prefer the Chase Freedom 3% rebate for gas purchased anywhere. The price for Shell gasmore than makes up the difference in my area.

It pays the 1%/3% rebate from the first dollar spent and is posted as a credit on the following months statement. I have received my second month's statement and can verify this.

It seems from the discussions on the FatWallet Finance Forums regarding this card that they are not currently taking online applications. However, you can apply by phone at 1-866-800-FRDM (3736).

Regarding Annual Fee- "No annual fee first year. Thereafter, the $19 annual fee will be waived if at least nine (9) purchase transactions were made in the prior year".

Great basic cashback card, or I use it as a Gas Card / SW Amex Backup Mastercard.

<edited to add>:
Currently Chase is offering a promotional 6% rebate on gas purchases for the first 90 days the card is open.




[This message has been edited by ddavis (edited 03-26-2003).]

How about the AA Challenge? 10,000 miles (5,000 Q-pts) in 90 days will get Him Gold. Gets the bonus faster.