Consumer Quiz: What’s The Better Charge Card Deal: 50,000 Airline Miles or $1,000?

April 10, 2008 at 2:37 am · Filed under World Of Mathematics

You probably get countless solicitations for charge cards in the mail, as I do.

One offers “Up to 60 days to pay!” boasting that this doubles and even triples conventional grace periods.

Many offer airline miles, usually at a rate of one mile for each dollar spent on the card.

Yet others offer cash back: one percent on most purchases and five percent on gasoline, groceries, and a few other vitals.

But have you ever wondered what’s the better deal, say between airline miles and cash?

The answer may surprise you.

Many carriers say they offer a roundtrip ticket anywhere in the lower 48 United States for 25,000 miles. Let’s say the average restricted coach ticket would cost you about $700.

That’s not bad, really. You’re getting about 2.8 cents back per dollar spent.

And let’s say that you average a two cent return on those cash back cards. That would give you $500 in cash.

At first glance, you’d seem better off grabbing the miles, especially if you like to travel. But there’s a small problem.

Actually being able to book your seat on a carrier when you want to fly, especially during peak travel seasons, is very difficult, if not practically impossible. And to qualify for open seats you may have to purchase “anytime” itineraries, that can easily cost double the normal amount of miles.

So, instead of 25,000 miles for that trip, you’ll need 50,000 or more.

Are you still ahead, arithmetically? Not really, because at 50,000 points you could qualify for cash back in the amount of $1,000, which you could take and actually BUY a discounted seat, still for about $700, and have $300 to spend on goodies.

But there’s another issue with taking the miles. Even if your trip is technically free, there are taxes and other fees that might run $75 and up.

Money can be spent, saved, or given away at any time, day or night, nearly everywhere.

Unlike miles, money doesn’t “expire.”

So, why settle for miles that may be difficult to use?

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Airline Credit Cards - A “How To” Guide

April 6, 2008 at 5:41 pm · Filed under World Of Mathematics

There are many airline credit cards available today, but it is up to you to earn the most miles/points possible. You will find how to earn bonus miles, use business expenses to your advantage, and how to turn normal purchases/budget expenses into miles/points. Let’s discuss in more detail how to maximize your card’s earning potential.

Bonus Miles/Points

Some airline credit cards will give a new card holder bonus miles for choosing their card or even give double miles/points when you purchase airline tickets. A little investigation into what each card offers before applying can save you not only in interest and fees, but in actual miles/points as well. In fact, some airline credit cards offer as much as 25,000 miles just for choosing their card! A little research in this area will definitely be to your advantage in getting the most miles/points as quickly as possible.

Double Miles/Points

Another avenue of quickly adding mileage/points to your account is by receiving double miles/points for airline ticket purchases. Check to see if the airline credit card companies you are interested in will double miles/points for the purchase cost of a regular ticket charge. If you travel frequently due to business or for personal reasons, these types of miles/points credits could really add up quickly.

Business Expenses and Tickets

As a business owner, you can use your airline credit card for business expenses and earn miles to help offset the expense of your employees’ airline tickets for their business trips.

For personal benefit, another approach is to charge business expenses to your airline miles credit card that will be eventually reimbursed by your employer. When you receive your travel check from your employer, make sure you pay the balance owed by the due date and you will have miles/points earned for a well-earned vacation!

Earning Maximum Miles/Points and keep the Interest Costs down

Since many airline miles credit cards have a higher interest rate than other cards, to most effectively use your airline credit card without running up unnecessarily high interest charges:

1) Use your card to purchase as many items as possible; including paying off your monthly bills without going over your usual monthly expenses already budgeted;

2) Immediately pay off any balances when your airline credit card statement arrives.

What will this accomplish?

1) It will credit your account with the maximum miles/points without incurring the high interest rates;

2) Since you are earning miles/points quickly, you can enjoy the reward of going on more trips or to a more exotic destination than by just occasionally using your airline miles credit card.

Rewards

There are so many ways you can reap the rewards of your airline miles credit card, from saving money for your business expenses, finally being able to take that dream vacation, to bringing home your child from college or living far away . . . unlimited uses . . . unlimited dreams . . .

Conclusion

It is up to you how quickly your reward miles/points add up. These ideas are very simple, but if used correctly will give you maximum benefits with minimal costs. Here is a quick checklist for your reference: 1) Research alone can add up to 25,000 miles on your new card; 2) Add some miles from airline ticket purchases; 3) Business expenses-either actual business or personal business can be used to offset future business expenses or used to enable personal trips. 4) Finally, converting simple costs of daily purchases/budgetary expenses into miles/points will give you countless opportunities to earn miles and points. I think you will definitely find that these methods will enable you to earn miles and points quickly with your new airline credit card.

For more on airline credit cards, Robert Alan recommends that you visit CreditCardAssist.com

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