Best Credit Card to Accumulate 'Miles'

I just applied for a Capital One card today. I closed out a credit card because Capital One offers more . . . no hassle miles and no foregin conversion fees.

I've had good luck with USAirways programs. Of course, I lived in one of their hub cities. The new MasterCard issued by Juniper Bank (part of Barcley's bank out of UK) has a $75 annual fee, but I think the fee is waived for the first two years (maybe only one).

Since I got serious about miles, I've flown round trip to London twice - once first class and once business class. I did have the luxury of very flexible travel dates. If you're flying peak times, you need to jump on the flights; a USAir agent told me that the ff mile flights open 270 days before departure and they sell out/book almost immediately.

My next trip will be coach and I'm dreading it.

I do not know which Credit card is the best for that. The AAdvantage Citi MasterCard has been good for me. Using that credit card, the customer acquires miles with American Airlines. And American airlines has very many airplanes, going to very many places. I got free tickets - American Airlines - for flying to Paris, using my AAdvantage miles (frequent flyer miles). American Airlines gave me 5000 miles when I acquired the Credit card. (I was not required to get myself into debt by using the credit card). American Airlines can give you a brochure that informs you of the many businesses that are partners : for giving you American Airlines AAdvantage miles, when you use the AAdvantage Citi MasterCard.

I also have used AA Adavantage (since 2002) and I have received 5 domestic tickets and 2 tickets to Europe. (I mostly earned my miles from charging every purchase including my daughter's college tuition-I always pay the amount off monthly, but the miles did add up fast) However, I recently read that citicorp was changing the program and it was going to take a huge amount of miles to do anything. ( I wish I could find that article-it had to do with all the problems they are having) Also, the card costs $50 a year, so you have to figure that into your analysis as well. I have dropped the card back to their "bronze" (l mile for every $2) and am looking around.

You need to consider it carefully because it is easy to be trapped by airline mileage cards. I think the airline mileage cards have lost some of their luster. A cash back card could be a better deal. For example if it takes 30,000 miles for a free domestic ticket and that ticket has an average value of $300 that is only a 1% return assuming you earned one mile for one dollar spent. Some cash cards pay from 2% to 5% under special deals. If you could average between 2 and 3% on a cash back card, you could have $600+ to buy that ticket on your terms. It is a math game.

Here are a couple of options to consider.

Like others have said, you can get an AA (Amex or MC from Citi) - this will give you 25k miles after you spend $750 in the first 4 months. There is an 85$ annual fee but free for the first year. So a lot of folks just cancel the card after 1 year.

A better card maybe the Starwood Amex card - this earns you points in the Starwood Hotel Program (Sheratons, Westin, etc.). You earn 1 pt per $ spent - the great thing about this card is that you can use 20K points to get a free domestic ticket on many airlines. This card carries a $45 annual fee but is free for the 1st year. For flexibility, this is a great card - but is worthwhile only if you are earning a lot of points regularly - say from a business, etc.

I live outside Newark and since Continental's hub is Newark we fly only Continental. My husband and I have Continental MC which we got for the 25,000 miles. We will use them occasionally when there is some special promotion other than that we use our AmEx and transfer miles. Also, I do all my shopping using the links on Continental.com - every Barnes and Noble purchase earns you 5 miles for every dollar. Same for Target, Zappos, Staples and a bunch of others. This is how I earn most of my miles. I am a miles addict.

If you have been researching credit cards, you wiill know which one offers the best benefits to you.

Some travelers acquire a new card with 25,000 free miles and no annual fee (or a limited fee) and cancel after the first year. Then apply for another card with 25,000 free miles.

I have done that a few times. I use my Citibank AA Mastercard for everything I buy including doctor bills, membership fees, groceries, gasoline and religious contributions.

It means that one must be consistent in using the CC for all purchases.

My wife and I can each accumulate 26,000 AA miles or more a year. I always pay the charges monthly so I never pay interest.

In the past 3 years my wife and I have accumulated enough miles to fly once or twice a year domestically. That is enough for me.

This year we have accumulated enough miles for three free tickets...one on Capital One and two on Lufthansa. They both have caveats...Capital One will charge you 80% of the airfare in miles, so if you have a costly ticket as we do this year, $1600. it will cost us about 131K miles. Lufthansa charged us 47K miles on a special deal but then you must pay for taxes in cash amounting to about $240. per ticket. They get you coming and going. My husband and I both have a Lufthansa card and he just joined this year and received 20K miles. We pay for everything with credit cards and pay it in full at the end of the month. We also shop online via the credit cards. If you shop certain stores via the credit card company. They will give you more than one mile per dollar. At Christmas, I used Capital One as some stores offered 15, 20 or 25 miles for every dollar spent. They have those extra miles throughtout the year, however, at Christmas they really bumped up the miles. When we get ready to purchase our tickets, I check our balances and we may concentrate on one card or another, where ever we need the miles to get the freebies. Gute reisen and viel spass einkaufen!

It was already mentioned, but I would also recommend any card related to Starwood points. Starwood points are probably the most highly valued points and have some of the best transfer systems around. Most Starwood cards are 1 point = 1 dollar - then you can transfer it to most airlines or just use them as Starwood points to stay at Westin Hotels.

Pete