 Recent Articles Mentioning The Miles Card from Discover® Card
Airline miles credit cards are
among the most popular types of rewards credit cards. However,
only a handful of frequent flyer miles credit cards provide great
rewards and value. The reason for this is quite simple: most
airline specific credit cards charge astronomical annual fees and
high interest rates. Now, if you travel often and spend more than
$10,000 a year, just about any airline credit card will earn you
miles. However, if you want to get free miles, airline
flexibility, and save money on interest and annual fees, there are
only three miles credit cards you should consider:
The Miles Card from
Discover,
American Express Blue Sky and the
Citi PremierPass. Here, we will
examine all three cards. First, however, we will examine the
average airline specific credit card.
The lure of the "average" airline
specific frequent flyer credit card is the bonus mile offering.
Who wouldn't want 15,000 miles? In addition to the substantial
free miles offered, the average airline credit card also waives
the annual fee during the first year. The combination of free
miles and a no fee first year draws in many consumers. However,
the initial perks are generally offset by the money it will cost
to maintain your credit card after the first year. First, the
average annual fee charged by these credit cards is $75. Ouch. And
the average interest rate? More than 17%. Sure, you get a lot of
miles upfront, but is it really worth paying 5% more in interest
and a substantial annual fee? Not when there are much better
offers available.
The
Miles Card from Discover
is a no annual fee airline rewards card that offers a 0% interest
rate for 1 year, a low long term interest rate, and the
opportunity to earn 1 mile for every dollar spent. The miles you
earn can be redeemed on any airline with no blackout dates. Plus,
you get 12,000 bonus miles when you make your first purchase. The
interest rate on this credit card is over 6% less than that of the
"average" frequent flyer card. Plus, you pay no interest on
purchases or balance transfers for up to 1 year.
The
Citi PremierPass offers
two levels of airline rewards. The regular PremierPass MasterCard
offers 5,000 free miles, charges no annual fee, and offers an
interest rate that is 4.25% lower than the "average miles card."
Additionally, you can earn 1 flightpoint for every three miles you
fly on any airline with a ticket purchased with your card.
The
Citi PremierPass also
offers an elite level. Now, there is an annual fee of $75.
However, you receive 15,000 bonus miles, earn 1 flightpoint for
every single mile flown, and double miles on everyday purchases.
The interest rate is still 4.25% less than the "average miles
card," plus, this card offers a 0% interest rate for up 1 year.
The
BlueSky credit card from
American Express does not try to lure you in with free miles.
Instead, they offer value. For every 7500 points earned, you
receive $100 that can be used for any travel expense, including
car rentals, hotels, online travel sites, and cruises. The value
here is that every point you earn is worth 33% more than than the
average point. Plus, you can use your rewards for all of your
travel expenses, not just airline tickets. Additionally, this card
offers a 0% interest rate for 6 months, charges no annual fee, and
offers a low long term interest rate that is 5% lower than the
"average miles card."
As you can see, airline credit
cards offer a variety of perks at a variety of prices. For some,
an "average miles credit card" with an annual fee of $75 and an
interest rate over 17% might provide the best overall value.
However, most credit card users will end up paying more money in
interest and fees on their credit card than they would if they
simply paid for their ticket in cash. The real value in frequent
flyer credit cards can be found with the general miles credit
cards that charge no fees, offer low interest rates, and offer
more travel flexibility.
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