Dial-Abroad.org - USA and World Phone Services, Comparisons, Reviews
Things to consider when choosing a card from american express

I hope you'll appreciate the simplicity of what I'm writing here. With all the choices Amex offers, you need to use common sense.

Currency Conversion Fees

I chose an American Express card because they offer many cards with good terms, low interest rates and no hidden fees. Almost all credit cards have a currency conversion fee, or they hit you in other ways. When using a Visa or Mastercard in a foreign country, you typically pay a 3% to 5% currency conversion fee for every transaction (1% goes to the card company and another 2% to 4% goes to the bank). Amex charges a flat 2%. That means I save 2% on every foreign purchase by using my Amex card rather than an airline affiliated Visa card!

Annual Fees

Many Amex cards (and mileage cards in general) have high annual fees. If you pay an annual fee you may earn air miles faster (e.g., one air mile per dollar you spend), and the card will have other benefits. Cards with high fees often have high interest rates as well. The bottom line is you may be paying more than the value of the air miles and extras you receive. Don't just look at the air miles, but look at all the costs and benefits.

Non-Expiring Air Miles

Points earned on American Express cards stay under your control and they don't expire, so don't transfer them to your airline account until you need them. For example, transfer them into your airline frequent flyer program account strategically to keep the air miles you have from expiring.

Credit cards that earn free travel

Some credit cards are clearly better than others. Choose a credit card with good terms that really works for you, earning air miles and other practical benefits

When we were preparing to live abroad, I looked for a credit card that earned free air miles and chose a card from American Express. I recommend American Express cards for people living abroad, expecially in Japan. They are widely accepted with good terms. Keep reading for my new recommendations and details.

Recommended

I'm impressed with the American Express® Starwood card, as are most people who give advice to frequent travelers.

Starwood Preferred

Starwood Credit Card from American Express®

No annual fee first year, $45 thereafter
Earn 1:1 air miles (1 air mile for each $1 spent)
Transfer air miles to many different airlines
Up to 25,000 bonus miles

Starwood is probably the most popular credit card choice among people who want to earn air miles for travel. Most mileage cards only let you transfer miles one (or a handful) of airlines. The Starwood card lets you earn miles quickly and transfer them to most major airlines (30 airlines and counting).

The Starwood card can generate up to 3% cash value per dollar spent, compared with 1.3% using the Blue Sky card. Keep in mind the annual fee, and ask yourself whether you want cash (to shop for your own airline tickets with no restrictions) or miles. One of these cards is probably the best choice for you.

Gold Delta Sky Miles Card

Gold Delta SkyMiles® Credit Card

$95 annual fee (first year free)
Earn air miles (1 mile per dollar, plus double miles)
Up to 25,000 bonus miles

If you want to earn air miles and don't mind paying an annual fee, do yourself a favor and choose a credit card that offers 1 mile per $1 you spend plus lots of bonus miles just for signing up. In a sense, these are all free air miles, because the annual fee is waived for your first year. Sign up now and cancel later if you don't think the card is worth it. Or maybe you'll get hooked on Delta; I hear it's great.

You cannot apply multiple times and keep getting the bonus miles. American Express only gives the bonus miles to people who are signing up for the first time.

If you don't fly Delta, then a Delta Sky Miles® card probably isn't for you. Also keep in mind that this card, like most "mileage cards," has a very high interest rate. Of course, that's not a problem if you pay off your bill each month.

Rewards Gold Card

American Express Gold Rewards Card

$125 annual fee (first year free)
Earn air miles (1 mile for 1 points = 1 mile per $1 spent)
10,000 Membership Rewards® bonus points (must spend $500 within 3 months of Card membership)

American Express has increased the value of this card by allowing you to earn air miles at a faster rate (1 mile per $1spent). Unlike offers in the past, you can redeem your Rewards® points for mileage on 17 airlines.

And there are other perks like Gold Card Events (exclusive access to certain concerts and sporting events).

The annual fee has increased to $125 (waived for the first year). But if you want the miles and spend enough money per year to justify the annual fee, this may be the right card for you.

American Express Platinum

American Express Platinum

$450 annual fee
Free companion tickets with 1st or Business Class tickets
Automatic Enrollment in the "First" Rewards Program
Air miles (1 mile for 1 point = 1 mile per $1 spent)
with 4x and 2x earning capabilities
Exclusive Airport Club Access and much more

People who want the Platinum card won't flinch at the annual fee. The benefits are well worth the price of admittance.

The most significant benefit may be access to exclusive airport lounges without having to buy an international first class or business class ticket. The lounges offer the comforts of home: free drinks and snacks, TV, showers, and a place to rest. Many frequent travellers get the platinum card for this reason alone.

Other benefits include a concierge service, 24/7 personal assistance, invitation only events, and much more. Click through for details.

Conclusion

Pay off your credit cards every month. Besides making good sense financially, American Express cards only accrue Membership Rewards points when balances that are paid in full before the end of the month. If you can't or don't make the payments on time, then the money you'll be losing in interest and possibly late fees will outweigh any benefits you receive.

Assuming you manage your money well, it makes sense to choose a credit card that will earn useful benefits. Personally, I like credit cards that earn free travel.

If you will be using a credit card frequently outside the USA, keep in mind that American Express charges a relatively low currency conversion fee. See my notes about "Currency Conversion Fees" in the right margin above.