Apologies for the missing post yesterday. Due to the events up in Boston I elected not to post.
Today is the day before we choose the credit cards we want to sign up for. We will devote today to understanding how you travel and/or how you want to travel, as this will be the key to choosing the right credit cards for earning points and miles.
Question 1: What kind of traveling do you want to do?
Some people are looking to earn points and miles so they can go on awesome vacations. Others, like myself, are making a long-distance relationship work. The kind of traveling you want to do will inform the types of points and miles you want to earn, and therefore the types of credit cards you should be applying for. In my mind there are two sets of options to choose from for these kinds of traveling:
Domestic or International
International
If you travel internationally, tickets tend to be VERY expensive. More importantly though, their miles cost is lower than their points cost (remember, mile value varies, but points are always worth 1 cent). Example:
DC to Beijing - United Airlines (5/26-6/2)
Lowest Miles Cost: 65,000 + $38.90 (taxes and fees)
Fare Cost for same day: $1,739
Points Cost for same day: 173,900
Cost Winner: Miles
Since miles are the clear winner over points for international travel, I recommend getting airline mile credit cards (cards tied to a specific airline) instead of points credit cards. Skip on down to question 2 to decide which airline you want to fly.
Domestic
The answer to whether you want a miles or points card isn't so clear-cut with domestic travel. But in general it is based on the distance you fly. Here are some examples that are the norm but definitely not always true:
Long-Haul - Boston to Los Angeles - United Airlines (5/26-6/2)
Lowest Miles Cost: 25,000 + $10
Fare Cost for same day: $390
Points Cost for same day: 39,000
Cost Winner: Miles
Short-Haul - Boston to DC - US Airways (5/26-6/2)
Lowest Miles Cost: 25,000 + $33
Fare Cost for same day: $184
Points Cost for same day: 18,400
Cost Winner: Points
The answer isn't as clear-cut, but in general, go with a points card for short-haul travel and a miles card for long-haul travel.
Question 2: Where are you from, and where are you going?
Despite the existential heading, this is actually a concrete question. The first thing you should figure out is which airlines actually fly to where you are coming from, and what airlines fly to where you are going. And not just which airlines fly these places, but which airlines fly these places a lot. When using airline miles, you want as many seats available as possible to your destination. For instance, I live in Washington DC and my family lives in Boston. If Boston is the only place I want to go, it wouldn't make much sense for me to sign up for an American Airlines credit card because they don't fly directly between those two cities.
So which airlines fly to which cities a lot? You can figure this out based on where each airline's hubs are. Find your origin and desired destinations in the list below:
American Airlines:
Chicago-O'Hare, New York-JFK, Dallas, LAX, Miami
Other notable cities: Saint Louis, New York-La Guardia, San Juan PR
International areas of strength:Central America, Caribbean
United Airlines:
Chicago-O'Hare, New York-Newark, Cleveland, Washington-Dulles, Houston, LAX, San Francisco, Denver
International areas of strength: Europe, Asia
Delta Airlines:
Atlanta, Cincinnati, Detroit, Minneapolis, New York-JFK, New York-La Guardia, Memphis, Salt Lake City
International areas of strength: Europe, Asia
U.S. Airways:
Washington-Reagan, Philadelphia, Charlotte, Phoenix
Other notable cities: Pittsburgh, New York-La Guardia
International areas of strength: None
Southwest:
No "hubs", but below are their top 10 cities
Chicago-Midway, Las Vegas, BWI, Phoenix, Denver, Houston, Dallas, LAX, Oakland, Saint Louis
International areas of strength: None (Southwest has no international destinations currently, except via their subsidiary AirTran, which has 8)
JetBlue:
New York-JFK
Other notable cities: Boston, Fort Lauderdale, Orlando, Long Beach CA, San Juan PR
International areas of strength: Caribbean
Alaska Airlines:
Seattle, Anchorage, Portland, LAX
International areas of strength: None
Virgin America:
San Francisco
Other notable cities: LAX
International areas of strength: None
Frontier:
Denver
Other notable cities: Philadelphia (via Wilmington DE and Trenton NJ)
International areas of strength: None
Don't see your city on there? Not to worry. You can always send us an email and we can tell you the top airlines flying out of your home city.
So there you have it. You've got your type of credit card. If it's a points card, you're good to go. You can travel on almost any airline. If it's a miles credit card, you've got your airline of choice from above. Tomorrow we'll apply for these cards!
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