It must be emphasized that air miles credit cards are not for everyone. If you don't pay off your balances each month, there can be hefty interest charges that more than offset the possible travel benefits. Airline credit cards usually have higher rates than bank-based cards.
But interest rates are not the only factor in the decision process--in fact, they should be relatively unimportant. You should plan to use these cards as "plastic money," not as a way to borrow funds. If you can't pay off the balance most months, mileage cards are not for you.
What follows are some picks for cards tied to banks but not individual airlines. This is not a blanket claim for the best credit card to carry with air miles. It is a selection of some top choices. All of these offers include hefty fine print sections. Please read them very carefully, and understand that terms change quickly.
Here you may transfer balances from other cards interest-free for the initial 15 months. The annual interest rate is listed at 12.99 percent, but it varies according to your credit rating. After the first $300 in purchases within three months of account opening, new customers get 6,000 bonus points. Earn points for purchases and the miles flown on any airline. Round trip ticket rewards start at 25,000 points within continental U.S. and Alaska. You must book through Citi's ThankYou Network. The card imposes a 3 percent processing fee on transactions made overseas and on balance transfers.
The good news: If you have a large balance on another card, you can transfer it here and not pay interest for 15 months. No annual fee. The bad news: You must work through the "ThankYou Network" rather than having the flexibility to book on your own trip.
First National Visa Signature Card with Maximum Rewards
This offering from First National Omaha awards one point for every U.S. dollar spent. There is no annual fee and you get 5,000 bonus points the first time the card is used. APR varies from 9.99-16.99 percent (not including cash advances) depending upon your credit rating. There are no caps on mile earnings, but points expire five years after they are earned. There is also a processing fee of 3 percent on transfer balances. Airline ticket rewards start at 16,000 for an airline gift card of $200. A few more examples: it takes 40,000 points for ticket of up to $500 and 61,000 points will purchase a ticket of up to $800 (this was previously 50,000). A $37.95 redemption fee is applicable for travel within the U.S. (all 50 States), Canada, Mexico, and the Caribbean, and $47.95 for international travel redemptions.
The good news: Airfare rewards start at 16,000 points. The bad news: Point requirements have increased for more expensive tickets, and points expire five years after they are earned.
National City Travel Rewards Visa
The offer here claims no blackout dates, and miles may be applied to cruises, car rentals and hotel stays, too. There is no limit on the number of miles earned in a year. This card requires no annual fee and variable APR starts at 9.99 percent with good credit. New customers get two miles for every dollar spent on the first $2500 charged to the card. You must redeem a minimum of 25,000 miles. The first 25,000 miles earn up to $315 worth of air travel within contiguous 48 states. You will receive an additional credit of $50 for each additional 5,000 miles you redeem. There is no limit to the number of miles you may redeem in any calendar year.
The good news: No blackout dates and no limit on mileage earned. The bad news: Miles expire on the statement closing date in December of the fourth calendar year after the year in which the miles were earned. Enter your zip code to check availability.
The chief selling points are 1.25 miles for each dollar spent on purchases and mileage that never expires. No annual membership fee is required, and the purchase APR is 0 percent during an introductory period, after which the rate becomes a whopping 17.9 percent. Capital One has travel agents who will book your travel, but you also have the option of buying on your own so long as you use the card for payment. Rewards: up to $150 for 15,000 miles; up to $350 for 35,000; and 60,000 for up to $600. Beyond that, the mileage requirement is the price of your ticket multiplied by 100.
The good news: No airline or seat restrictions, no blackout dates and no fees for balance transfers and 1.25 miles per dollar spent. The bad news: A system of redemption that includes large mileage gaps. For example, 15,000 miles (the minimum for redemption) entitle you to a $150 credit. If your ticket costs $150.01, you'll need 35,000 miles. Notice "ticket" is not plural. Redemptions only apply to single-ticket purchases.
American Express Preferred Rewards Green Card
Do you have points in a frequent flyer account that don't come close to a redemption total? This card from American Express allows transfer of points to 20 frequent flier programs on a one point=one frequent flyer mile. New customers get 5,000 bonus miles opening the account. You cannot carry a balance on this card. If you don't pay off new monthly charges in full, there is a late-payment fee of up to nearly 3 percent. There is also a $95 annual fee at the end of the first year.
The good news:The ability to transfer miles to 20 different frequent flier accounts. The bad news: Stiff penalties for not paying monthly balances and a large annual fee beginning in year two.
