Thread 2833206

are airmiles worth it if I don't spend much (<$500/m) or is a simple cash back cc to hysa a better idea? Overall, I'm very frugal and travel on a shoestring budget

>>2833206 (OP)
What are you being offered? Tbh, at $500, you've probably burnt more time in labour making this post than the return you would've gotten from (((credit card deals)))

>>2833212
>What are you being offered
Just Capital One's VentureOne; 1.25 miles per dollar, each mile can be redeemed up to 1.6 cents depending on the airline

>>2833206 (OP)
Probably not, unless there’s a big sign-up bonus alongside whatever points/miles you’re offered for your modest spending. The bonuses are often at least theoretically big enough for a couple of domestic (US) flights or at least half of a R/T international flight. Or they might support some upgrades, although I feel like most rewards programs are increasingly demanding both points and cash for upgrades unless you’re a genuine frequent flier with status, which if you travel on a shoestring you are obviously not… meaningful status is mostly the province of people whose jobs send them on a lot of long-hauls in business class nowadays. (I briefly got status with an alliance only after something like a dozen transcontinental flights in coach inside of a year, which was a fluke).

Anyway, varies by airline, time of year, lots of other factors, but international awards tickets might cost 80K R/T. Do the math on whatever mileage the card is offering you, remember that miles/points/etc. may expire, don’t forget that awards flights are often harder to book, and you can calculate for yourself whether you will ever get anything out of it.

>>2833206 (OP)
As long as you pay it off every month
As long as the card has a low or no yearly fee
As long as you are willing to ensure that the use of a CC does not cause 1-5% fee like most utilities/rent/etc charge on it
As long as you are okay with only using the selected airlines at the selected prices the card offers
As long as you travel realistically more than once a year to get that "free" trip otherwise you're better with a 3.75% APY savings on chime
Yes

>>2833221
That's kinda a shit one, Delta or AAdvantage give some heafty bonuses up front+free carry on/checked bag+priority boarding and sometimes they just will bump you up in class free.

there's no way it's better than a HYSA if you're not some rich guy traveling 4-5 times a year

>>2833206 (OP)
Airline points are bullshit. Unless you fly often for work, spend $75k annually on an airline card, or constantly churn it is impossible to organically earn enough points for good redemptions. And even then you'll have to compete for award bookings against everyone else who has the same idea.
>B-but I bought a $5k business class ticket for only $1k worth of points!
Yeah, and how much money did you spend to earn those points? Without a sign-up bonus how many years would it have taken you?

Airlines make more money by selling points than by transporting passengers. That should tell you all you need to know.

>>2833625
This is a midwit view. If you’re able to generate miles through your normal organic spend they’re outstanding off value.

t. Just booked two round trip J tickets from DC to Auckland.

>>2833629
>t. Just booked two round trip J tickets from DC to Auckland.
How'd you go about maximizing your value/mile?

>>2833659
Maximizing earning or spending?

>>2833206 (OP)
You will 100% waste more money chasing points than if you just ignore them.

>>2833659
Depends on the card, some cards offer 2x or 3x points if you shop in specific gas stations, stores, etc.

Honestly points are a nice to have for me and used for emergencies or if I can't find a cheap flight I just dip into the points for those hard times of year things (think xmas/nye/national holidays).

Best use of airline cards these days is getting lounge access which pays for itself with the free food+comfortable resting areas and some even having showers. Free checked bag and cheaper upgrades to class and possibly the extended option of refunds/changes without excessive fee's. Getting a card because you get a "free" flight once a year often isn't worth it because the cards with good point rewards have a yearly fee.

Anyone know this pain?
>looking for airline card a while back
>ask some coworkers about it
>WHOA ANON THOSE THINGS ARE A DEATH TRAP THEY GOT ALL THOSE FEES AND INTEREST RATES ARE INSANE!
>what?
>YEAH I GOT THIS ONE UHH DELTA ONE IT'S CHARGING ME 28.99% ON MY STUFF SO MUCH FOR THE FREE LUNCH!
>oh I pay off all my current card at the end of each month
>YEAH WELL LEMME TELL YOU I DID THE SAME BUT IT ADDS UP THE INTEREST COMES AFTER A FEW MONTHS
>not if you pay it off
>YEAH WELL I GOT HIT WITH SOMETHING OR OTHER THOSE CARDS ARE A SCAM GOING TO TAKE ME 10 YEARS TO PAY OFF THINKING ABOUT JUST CUTTING IT UP AND FIGHTING IT IN COLLECTIONS KISS MY ASS IT GOES AWAY IN 7 YEARS

Why are people like this? Seems like everyone I talk to regarding cards or some shit end up needing to tell me about how much debt they are in and how travel life can't possibly work for anyone. Are there people who leave an open balance on their airline CC thinking the points truly off set the debts?

>>2833625
Found the travelet.

>>2834750
Convincing argument. Airmiles are a widely known scam. If it was +ev, it wouldn't be offered.

>>2834698
Are you mid 20's? Around age 30 you will finally and forever realize that almost everyone is retarded niggercattle who are wrong about everything, and that you are capable of figuring out what is correct on your own. Keep your own counsel, nod and smile at the noises the niggercattle make, but don't actually try to talk to them about stuff.

It's worth it if:

a) the card has no annual fee
b) you will pay it off in pull every month - paying interest or late payment fees will quickly erode the value of the miles
c) the miles don't expire if you keep earning them

If you're not getting something back from your payment cards, then you're basically subsidizing everyone else that does. I used to work for a credit card company - we'd not only get transaction/interchange fees, but Visa would also give us 'value in kind' (credit to use on things like marketing and services) depending on how much money we generated for them through fees.

I just got direct return business class flights to Japan that were selling for $5k. Yes, I have spent a lot to earn those points, but I haven't spent extra, just everyday spending and picked up bonus points here and there.

Forgetting about big ticket items. points and miles are also useful for short haul flights too. I've used them for last minute tickets that had a high cash price, but I've also used them for tickets I knew I might need to change, as the terms/cost of cancelling or changing reward tickets are usually much better. You're often buying a flexible ticket type, rather than the discounted/lowest fare type.

>>2833625
It's free money you retard.

>>2833206 (OP)
If you don't fly enough to consistently have a high status with an airline, find a card that give you status. E.g. ANA's comes with Star Alliance Gold and I heard that Delta Amex has a similar thing. I find that plus whatever miles you get to be well worth it.

>>2834787
It's a profit sharing mechanism between payment processors and merchants. If you're convinced that airmiles don't have an opportunity cost, show the workings.

>>2834792
>I buy products I would have bought anyway
>I get free shit for it
such a scam, fucking kikes

>>2834795
Do you know what an opportunity cost is, anon?

>>2834787
No it's fucking not you idiot you're still paying 25-100 dollars a month in fees and interest. If you want to have good credit you need to keep a balance of at least 20-30% of your max credit limit. This was basically told by all college professors if you ever took anything finance related. Enjoy never getting a score above 500 and living in a trailer park

>>2834806
>interest
you truly are retarded

>>2834821
you provide nothing but shitposts.

>be me
>only ever had one credit card in my life
>went on a trip recently
>credit card malfunctioned
>no freezes or holds, the physical card itself malfunctioned
>traveling wasn't impossible, just slightly more complicated

Now I'm looking into getting a second credit card. What kind of credit cards do people normally sign up for?

My only credit card is just a Visa that was issued by my bank. Should I get a MasterCard or Amex as my second card? Should I get it from a bank/financial institution, or should I get one with a store?

Bear in mind that I'm not necessarily asking about getting into points or churning, I'm just wondering if my secondary card should be similar or different to my primary card.

>>2834926
To elaborate, I want to get a second card to keep as a backup in case shit like this happens again. Didn't realize how inconvenient my life would be without a functioning credit card.

>>2834806
The factors that influence a credit score are not a secret and carrying a balance has nothing to do with it. In fact, high credit utilization is a detriment. But keep making interest payments on your fucking groceries i guess.

>>2834926
Maybe just any old no-annual-fee cash back card. Even if you're not gonna churn it, you might as well see who's offering the best sign-up bonus. Get a couple hundred bucks for something you're gonna do anyway.

>>2834806
I’ve never once had a balance on a card I didn’t immediately pay off and I’ve had an 800+ score for years.

>>2834806
>25-100 dollars a month
a very good credit card is like 100 a YEAR
and if you have to pay interest on your card then you can't afford a credit card

>>2834751
Yes, a widely known scam that gets me enough miles to fly a long-haul in first class every year. You're too smart to fall for that.

I will say that pretty much all the credit card websites and influencers are getting commission or advertising money to try and sell you a card with an annual fee. I do know people who have taken a card that just isn't suitable for them because of this.

Yes, airmiles, cashback and points are worth it BUT think carefully about what you actually need. Weigh up whether you'll get value from a card with an annual fee (is it saving you money you'd spend anyway, or making you change your behavior/spend more to make the most of the benefits?) vs one that has no annual fee and just earns basic points/miles/cashback.

- lounge passes are nice, but will you really get value from them?

- credit for hotels or restaurants - will you actually use it? (because you'll be limited to their booking platform)

- airline vouchers - can you actually use them before they expire? (you'll need to be flexible and being a solo traveller will give you way more options than trying to find 2+ reward seats)

- airline credit cards - are you happy to stick to one airline/alliance or would you normally just buy the cheapest fare? (sometimes the taxes and fees are almost as much as a competitors fare - especially in economy)

insurance - what's it worth to you? Amex Platinum is expensive, but the UK card has really good worldwide travel insurance for trips of up to 90 days, and it applies to partners, supplementary cardholders + kids... so that alone can be worth the annual fee. If it's just you though and you only travel once or twice a year for a week or two... maybe not so much.

>>2834789
This is what I did but with United as they're a star alliance member. I get 2 lounge passes a year. I travel for work sometimes and I use my miles to cover my ticket so I still bill the customer for air travel but pocket the difference.

I don't travel much, but I do go out of my way to build some kind of social credit with one airline.

>>2834926
Just get a general rewards card from citi or chase. If you're institution offers another product you find attractive, go with them, if there's better products else where, go else where.
>>2835016
Not advocating for it, but some of those balance transfers new account offers from some companies let your go a VERY long time without paying interest.

>>2835022
I've never seen anybody actually provide the maths as to why air miles provide better value than alternatives.

>>2835086
What are those alternatives? As people have mentioned multiple times in this thread, getting miles using a credit card is free. And with enough miles you get upgrades or free flights. Again, free.

>>2835086
You don't get an airline card for the miles alone that's stupid.
You get them because they offer things like earlier boarding, free seat selections, free checked bag, access to the airport lounge, and so on. Yeah you might pay 249, year for it but if you fly a lot you get that paid back in ~6 months max.

Always look into the loyalty programs and use miles as a backup to emergency flights or unexpected bullshit that comes up. Maybe some long haul 1 ways where they can be useful as well.

I'd say 9 out of 10 people who do these cards basically spend all the miles up front and don't bank a few to ensure

If you aren't a big traveler, just get a good rewards CC where at least you can push the points to shit like a hotel or flight booking through the banks site