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 Blue® card from American Express. I still recommend American Express cards for people living abroad, but now there are other American Express cards that I prefer. Keep reading for my new recommendations and details.
Recommended
I'm impressed with the Blue Sky from American Express® card that lets you earn cash value for travel rather than free air miles. I recommend Blue Sky® for those who frequently travel abroad and want to avoid the hassles of redeeming air miles. If you want to earn air miles quickly and transfer them to the airline of your choice, then I strongly recommend the American Express® Starwood card.
Blue Sky Card Recommended
Blue Sky from American Express®
No annual fee
Earn cash value to use for unrestricted air travel
The Blue Sky® card is one of best offers that American Express has ever put on the table. This card has no annual fee, low interest rates, good terms, and the usual benefits. Rather than give you air miles, you earn cash value that you can use to purchase airline tickets. Use the cash value to buy a ticket on any airline or flight you want with no blackout dates. You can even use it to buy discount tickets!
How it works and a comparison:
Earn 1 point per dollar you spend.
Save $100 on air travel per 7,500 points.
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This may seem like a gimmick, but it's a good offer as you can see below.
Example 1: Blue® Card
If you spend $50,000 with the Blue card, you earn 25,000 miles. That's enough to get you a roundtrip flight on Continental within the USA.
Example 2: Gold Card / Annual Fee Card
If you spend $50,000 with an American Express Rewards Gold Card, you'll earn at least 50,000 miles. You can use that to fly just about anywhere, but you'll be limited in your choices of airlines, flights, dates, etc.
Example 3: Blue Sky® Card Earning Cash Value
If you spend $50,000 with this Blue Sky® card, you'll have more than $600 of cash value that you can use to buy an buy an airline ticket. You can go far on $600. You can fly any airline and go when and where you choose.
Click the Blue Sky® link above to learn more. If you're like me, you'll take advantage of this offer and sign up today.
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.
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.
Blue Card
No annual fee
Earn air miles (1 mile for each $2 spent)
I signed up for Blue® to get a low interest rate credit card that would earn free air miles (no annual fee). I applied online and was approved with a low interest rate. I travel long distances each year, and I appreciate the ability to supplement our air miles by using this credit card for regular expenses. They really are free air miles, because we pay off our balance each month.
Getting 1 mile for every $2 spent is a slow way to accumulate air miles. If your purpose is to earn free travel, then you may be better off with the Blue Sky® card above (my choice) or an airline credit card like the one below.
Gold Delta Sky Miles Card
Gold Delta SkyMiles® Credit Card
$85 annual fee (first year free)
Earn air miles (1 mile per dollar, plus double miles)
Up to 17,500 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® Rewards Gold Card
$90 annual fee (first year free)
Earn air miles (1 mile for 2 points = 1 mile per $2 spent)
American Express says this card will pay for itself each year, but that's hard to understand. If you want a credit card that helps you earn free travel, this is a bad choice. It essentially earns 1 mile for each $2 spent. For a $90 annual fee, you should earn 1 for 1. Why not get a Blue® card with NO annual fee and earn mileage at the same rate? A Gold Card gives you access to "Gold Card" events and "deals" with select retailers that you may or may not use.
The bottom line is that this card is not worth it unless you fully understand it's unique benefits and use them.
Rewards Green Card
American Express® Rewards Green Card
$65 annual fee (first year free)
Earn air miles (1 mile for 2 points = 1 mile per $2 spent)
American Express also says this card will pay for itself in a year. But everything that I have just finished writing about the Gold card (above) seems to apply in this case as well. The only difference is that you're throwing less money away.
Conclusion
First of all, I strongly recommend paying off your credit cards every month. If you can't do that, 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 want to consider cards that give you cash back and other options, you can try comparing a variety of American Express® cards here.
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. 