Does applying for a credit card for free travel really work?

[BlueberryPie]

I'm meeting family in the island of Martinique in the Caribbean in January. Currently plane tickets are about $1000/person! I guess not a common travel destination from the US

I keep hearing of people using credit card miles for travel but I haven't been using miles, I get 2% cash back, last time I had a card that did miles was decades ago and it was a pain to redeem.

It looks like some credit cards have a 100K miles sign up bonus (must spend $4K in the first 3 months).

If I sign up would I be able to apply the sign up bonus for a flight on American Airlines? Is there a way for both my wife and I to sign up and each get the bonus or would they only allow 1 per household?

Our credit is excellent and income good (still working) so I would expect to qualify.

 

[mystang52]

Depending on timing of your travel plans, you may not get the miles in time. Check the terms of the offer. It may say something like the miles getting credited within, say, 45 days after you've spent the required minimum amount.
Or, it might be the miles are credited within a certain timeframe after the 90 day period, regardless of how soon you've charged the required amount.

 

[calmloki]

I'm meeting family in the island of Martinique in the Caribbean in January. Currently plane tickets are about $1000/person! I guess not a common travel destination from the US

I keep hearing of people using credit card miles for travel but I haven't been using miles, I get 2% cash back, last time I had a card that did miles was decades ago and it was a pain to redeem.

It looks like some credit cards have a 100K miles sign up bonus (must spend $4K in the first 3 months).

If I sign up would I be able to apply the sign up bonus for a flight on American Airlines? Is there a way for both my wife and I to sign up and each get the bonus or would they only allow 1 per household?

Our credit is excellent and income good (still working) so I would expect to qualify.

If you are thinking of the Chase Sapphire Premier card offer it is better yet: If you use the Chase travel site the 100,000 points are worth $1250.00 in travel booked through their site. My comparison a couple years back showed the Chase travel site prices to be pretty equivalent to regular booking sites.
Also, in my experience, Chase is quite quick in having the rewards post - more like within a few days of paying off the $4000. Other banks (looking at you Citi and BofA) have been painful - Chase easy.

 

[SecondCor521]

Yes to the question in the title.

Yes to the first question in the OP as long as the card is either one which accrues AA miles, *or* the card is one which accrues generic credit card miles or points (Like Chase Ultimate Rewards or Citi Thank You Points), *or* the card accrues points or miles which can be transferred to AA miles.

Yes to the last question in the OP about two bonuses. It is per person, not per household.

Very generally speaking, the bonus points or miles are awarded within a week after the statement closing date on which you reach the bonus spend.

Many people do Chase cards first because they have some of the juiciest signups in the industry and they have something called the 5/24 rule, which alludes to 5 new cards in the last 24 months.

 

[Sunset]

I'm meeting family in the island of Martinique in the Caribbean in January. Currently plane tickets are about $1000/person! I guess not a common travel destination from the US

I keep hearing of people using credit card miles for travel but I haven't been using miles, I get 2% cash back, last time I had a card that did miles was decades ago and it was a pain to redeem.

It looks like some credit cards have a 100K miles sign up bonus (must spend $4K in the first 3 months).

If I sign up would I be able to apply the sign up bonus for a flight on American Airlines? Is there a way for both my wife and I to sign up and each get the bonus or would they only allow 1 per household?

Our credit is excellent and income good (still working) so I would expect to qualify.

Yes each person can sign up for one of these credit cards (CC)

In the past I've signed up for this CC and the CC's from American and United. We have flown free to Hawaii, Barcelona, and a couple of other States.

The airline miles do work, but not as convenient as the Chase rewards. With Airline miles, you have to book as early as possible as the free seats are limited in number especially the lowest cost point ones.

 

[fh2000]

Before DW and I retired and before pandemic, we applied Chase credit cards (2 Reserved, 2 Preferred) and acquired enough points to fly to Asia and England free.

I got a Bank of America Merrill Lynch card, and flew to Asia once free. We also got Southwest cards with companion status and flew within US few times free.
Now that we are retired with no income and we can't get any cards anymore.

So, it is possible to fly free. Do it while you are still earning good salary.

 

[Sunset]

Before DW and I retired and before pandemic, we applied Chase credit cards (2 Reserved, 2 Preferred) and acquired enough points to fly to Asia and England free.

I got a Bank of America Merrill Lynch card, and flew to Asia once free. We also got Southwest cards with companion status and flew within US few times free.
Now that we are retired with no income and we can't get any cards anymore.

So, it is possible to fly free. Do it while you are still earning good salary.

We've been retired for years and get cards no problem.
Our income is from savings and IRA's and when they ask income/yr I always answer $111,000

Income is also Roth Conversions, interest, dividends, etc

Are you sure you have no income, how do you get groceries

 

[CoolRich59]

I used to do the credit card churn to rack up miles, but it has its challenges.

For example, you discover that more desirable flights are either blacked out entirely for booking with points, or require many more points than flights at other times. For me, using points to fly got to be more hassle than it was worth. I switched to a cash-back card which gives me the flexibility to use the cash earned for flights or anything else I choose.

A couple of good sites to help navigate points and travel are:

https://millionmilesecrets.com/

https://thepointsguy.com/

 

[CoolRich59]

We've been retired for years and get cards no problem.

Same here. When I apply for a card, I list occupation as “retired” and give a figure for income that is the equivalent of our withdrawl rate. I’ve never had a problem getting approved.

 

[Sojourner]

Same here. When I apply for a card, I list occupation as “retired” and give a figure for income that is the equivalent of our withdrawl rate. I’ve never had a problem getting approved.

+1

 

[Gotadimple]

Before DW and I retired and before pandemic, we applied Chase credit cards (2 Reserved, 2 Preferred) and acquired enough points to fly to Asia and England free.

I got a Bank of America Merrill Lynch card, and flew to Asia once free. We also got Southwest cards with companion status and flew within US few times free.
Now that we are retired with no income and we can't get any cards anymore.

So, it is possible to fly free. Do it while you are still earning good salary.

You have a credit history - everyone does. There should be no reason you can't get a credit card or borrow money. As for income - if you are withdrawing from savings, that is income. If you pay income taxes, you have income.

 

[Sojourner]

It looks like some credit cards have a 100K miles sign up bonus (must spend $4K in the first 3 months).

If I were you, I'd apply for the Chase Sapphire Preferred card right away and immediately start working on the $4,000 spend requirement. Front-load your spending as much as possible, so you'll get the bonus more quickly. Any big purchases you've been otherwise planning to make over the next 6-9 months, put them on the card as soon as you get it.

If I sign up would I be able to apply the sign up bonus for a flight on American Airlines?

Yes, depending on the specific card you get. Various cards have large signup bonuses you can use to purchase flights from any carrier (including American) through their special travel portal. Other cards reimburse you for any/all travel expenses after they occur by issuing statement credits.

Is there a way for both my wife and I to sign up and each get the bonus or would they only allow 1 per household?

Yes. You and your wife would each apply for a travel rewards card. It's very likely you could then end up both flying for free (or nearly free) to Martinique. Just remember to only spend on things you would have otherwise purchased anyway while trying to achieve the signup bonus!

Go to this website, read up, and learn. Travel reward cards are your friend.
https://thepointsguy.com/credit-cards/travel/

 

[fh2000]

We've been retired for years and get cards no problem.
Our income is from savings and IRA's and when they ask income/yr I always answer $111,000

Income is also Roth Conversions, interest, dividends, etc

Are you sure you have no income, how do you get groceries

Ah, you are right. I was thinking earned income. We do have other income though we made it low to be eligible for ACA subsidy.

 

[ItsAllGood]

If you're in an Alaska Airlines travel area, look onto the Alaska Airline VISA card. Annual fee of $75 and you get a free companion fare anywhere they fly. Between my husband and I, we have 3 cards and save many $$$ on trips to Hawaii and Costa Rica. Both my daughters have one each and make good use of their companion fares.

 

[brett]

Yes. Last year we signed up for three credit cards. They all gave airline points on signup and waived the premium fees for the first year.

End result...we added 90.000 points to our depleted airline points account. Cancelled all three cards prior to the renewal date. Our credit score remains the same-varies between 838 and 850. No idea why. This is the second time in five years or so that we have done this.

We cancelled a hotel card. No point in paying the premium when we are not travelling. We will sign up when we start travelling. One year forgive on the fee plus a pile of points.

 

[sengsational]

If you want the latest on sign-up bonuses, check out doctor of credit. The section on sign-up bonuses is detailed, and user comments add more (successes and problems).


Always having excellent credit, I was surprised to see "we couldn't offer you the best rate" on my homeowners policy. That happened right after both of us got cards with huge limits and charged a bunch to get the bonuses. This was in the days before you could easily get your credit score. The insurance hit was tiny, so no big deal.

 

[Jenna]

I haven't paid for a Southwest airlines ticket since 2011

I haven't paid for a Southwest airlines ticket since 2011. It works. I have also been able to use points for family vacations and a first class trip to Europe twice. So yes it works. I put everything on the card-my favorite is Saaphire preffered although the Mad Fientist Blog will tell you which cards are best for your travel goals. It takes some learning but its soooo worth it. I also used a service to book my trip to Europe. I didnt know airports and such. That was $100 per ticket. There is a guy who does a free course-I cant link to it cuz it looks like spam but it's 2 guys that do it for fun-Travel Miles 101. They booked my Europe flight_i do all the other flights. BTW-My credit score is over 800-it went up after getting the cards-and I pay a yearly fee for the sapphire prefereed but I more than make up for it.

 

[BlueberryPie]

Is there a chase site I can go to see how chase ultimate rewards work to buy airline tickets? Is it a points to dollars amount or is it frequent flier miles which are nigh impossible to use?

 

[SecondCor521]

Is there a chase site I can go to see how chase ultimate rewards work to buy airline tickets? Is it a points to dollars amount or is it frequent flier miles which are nigh impossible to use?

If you already have a Chase UR card, then you should already have access to the travel site.

If not, it's just a site that you go and search for flights, rental cars, and hotels. Prices are pretty much the same as what you can get elsewhere.

UR points convert to 1 cent per point, or 1.25 or 1.5 cents per point depending on how fancy of a UR card you happen to hold. (I think it's CSR is 1.5 and CSP is 1.25. But please double check that part because I've been out of the Chase UR realm for a while.)

 

[bada bing]

If you're in an Alaska Airlines travel area, look onto the Alaska Airline VISA card. Annual fee of $75 and you get a free companion fare anywhere they fly. Between my husband and I, we have 3 cards and save many $$$ on trips to Hawaii and Costa Rica. Both my daughters have one each and make good use of their companion fares.

I live in the Alaska Airlines footprint and most of my travel is inside of their footprint. I keep all my frequent flyer miles as Alaska Air miles. However, Alaska is part of the Oneworld alliance, which includes American. I travel on mileage tickets on American codeshare flights a couple times a year. I've found that using Alaska to book mileage seats on
American is a more flexible option than booking through American directly. Alaska's Oneworld partners include British Airways and Iceland air, which are two other partners I've flown mileage tickets with, booked through the Alaska site.

Chase points aren't "real" airlines miles and don't have the flexibility and availability of "real" airlines miles. As a credit card and as a rewards program, Chase is probably the best there is. I use a Chase Freedom and Chase Ink card extensively to earn rewards. The Chase Sapphire is a better card than the BoA AlaskaAir visa, but Alaska miles are perhaps a better option if you specifically want to earn mileage tickets on American. You might research it both ways.

 

[tulak]

I have both the Marriott and IHG CC. I get a free night every year, which is cheaper than paying for a room directly. Due to the pandemic, they’ve extended the expiration date to use the free night.

I also use the Chase Sapphire Reserve CC. I signed up when there was a high bonus (100k) years ago. I pay the yearly fee, since it has good travel benefits and let’s me transfer points to partners. They also have a good discount on point redemptions for travel.

It’s a bit of work to find the best deal, but it’s saved me money. Well worth the effort.

 

[Markola]

If you’re already getting 2% cash back, how much is that in a year? You might have to go totally down the rabbit hole of travel points, spending all kinds of time, keeping track of spending on several cards and spending lots of time on websites looking for deals, to beat the plain old cash you’re already getting.

Some people love the game but I already get 1.5% cash back and am not sure I can justify the opportunity cost in the form of my time to make it all worthwhile. Those that do seem to use Chase points as the gold standard flexible currency for international travel and Southwest as the currency for domestic travel.

 

[SecondCor521]

If you’re already getting 2% cash back, how much is that in a year? You might have to go totally down the rabbit hole of travel points, spending all kinds of time, keeping track of spending on several cards and spending lots of time on websites looking for deals, to beat the plain old cash you’re already getting.

Some people love the game but I already get 1.5% cash back and am not sure I can justify the opportunity cost in the form of my time to make it all worthwhile. Those that do seem to use Chase points as the gold standard flexible currency for international travel and Southwest as the currency for domestic travel.

It depends on how much you spend. I use a plain 1.5% cash back just because it's easy. But I have arranged my lifestyle to be at a very low expense rate, so that 1.5% cash back really doesn't amount to much. The sign up bonuses I get are much higher relative to that 1.5% cash back number.

For higher spending levels, I can see why people work the cash back aspect of things. For lower spending levels, sign up bonuses are relatively more lucrative and therefore more likely to be worth the effort.

 

[Chuckanut]

If you’re already getting 2% cash back, how much is that in a year? You might have to go totally down the rabbit hole of travel points, spending all kinds of time, keeping track of spending on several cards and spending lots of time on websites looking for deals, to beat the plain old cash you’re already getting.

I tend to agree with Markola on this with exceptions. I do favor cash back because I can use the cash anywhere for anything and it doesn't expire. Also, it can't be devalued by a company that decides it has too many points floating around. (Yes, the Feds can devalue cash.)

I do spend about an hour every quarter figuring out which cash back cards are the best to use for what and re-configuring my wallet. I have several cash back cards that give 5% back on a rotating basis. Currently, I try to use my Discover Card for gas as it gives 5% back, otherwise I use my Costco card which is 4% on gas. Groceries are currently giving me 5% bank with my Chase Freedom Flex card. That will end later this year.

I have one hotel card with a fee - $59. It gives me one free night a year at at their mid level hotels. It also gets me a 'free' upgrade on my room at times. Unfortunately, this card is no longer being issued. It's replacement costs $79 and has a few increased benefits, but not enough for me to pay another $20 a year.

Example: On a recent five day road trip , I used my free hotel night. And got a free room upgrade. I got 3% back on other hotel and restaurant expenses while getting 5% back on gasoline. Big money? No. But, it's better than a kick in the pants.

 

[BlueberryPie]

I 100% agree, I already get 2% cashback through a Venture card, which technically only applies towards reimbursing yourself on travel expenses, but between gas, the occasional restaurant and hotel, I spend it all monthly and don't try to hoard it for miles/vacation/miles.

This is why I am specifically after the sig-up bonus for some of the cards, if I do get $1250 towards travel for spending $4K over 3 months, even with a $95 yearly fee, it's worth signing up and maybe closing the card at te end of the year.