Cash Back Credit Card Vs. Air Miles Rewards Credit Card
Author: Eugene
Posted: Fri Jun 04, 2004 8:49 am
Post subject: Cash Back Credit Card Vs. Air Miles Rewards Credit Card
2/14/2003 0:32 am CDT
Kitten mentioned MBNA World Points card in another topic, and even though I already know I personally have better alternatives, here is my analysis that could be useful to people trying to decide between cash back and frequent flier cards.
Air mile cards' terms (not just MBNA's) are too restrictive for me. And even if I look at the straight price of the ticket and forget about restrictions, often I can buy it cheaper elsewhere.
Specifically, MBNA World Points card qualifies you for a ticket to Europe ($800 max. price) after you spend $50,000. With a regular 1% cash back card that are a dime a dozen and available at many issuers, the cash back would be just $500, so that's good, right? Not so fast.
Just a couple days ago I received an email from a site I bought tickets from before, that I can fly from New York to Bremen, Germany (my father lives there, so I am likely to fly there relatively often), for $275 (all the fees already included) in February/March. I would have to spend just $27,500 on a simple 1% cash back card to get this ticket free, nearly half as much as with World Points.
Bad season? Maybe. Let's look at a good one. Last year I flew in August - $880 was the cheapest price I could find. Oops! I would not have qualified with MBNA because the cap is $800.
Before that? Christmas season after September 11, 2001, when nobody wanted to fly. Price? Dirt-cheap $357. Again, a cash back card is better. Plus, I bought the ticket, like, a week in advance. Ha-ha! 21 days advance purchase required with World Points. They must be shaking themselves silly with laughter over there at MBNA. (And remember, we are talking about a GOOD frequent flier card. Imagine adding an annual fee to this soup, which MOST other frequent flier cards have! I am not Italian, but I’ll say "fogedaboudit!" anyway).
Before that trip? That was when my father visited me. I am even afraid to LOOK at fine print - the passenger name is different than on the card, flight originating not in the U.S., and on and on...
Another flight of mine was from Bremen to Naples. Bought with an all-inclusive package in Germany for prices that we can only dream about here in the new world. Not worth spending your airmile points for.
Next week I am flying to Montreal, let's look at that. I paid $200. With World Points card, $25,000 charging would be needed. I would have gotten $250 cash for that from a 1% card, bought the ticket for the same $200 (AND earned more cash back for that!), AND had a very nice dinner with my friend there in Canada for the rest of free cash. Additionally, I would have blown off the 21 day MBNA’s requirement (bought the ticket two weeks in advance).
Looks like of the six real instances in my situation (ALL of my flying in recent years), in every single one of them, I would have either not qualified for free ticket at all, or would have paid more than the cash back from a regular 1% back card. And I don't just have 1%, my main card is AmEx that pays more, and before that it was Farm Bureau Bank that also paid more - twice more.
But wait, fun doesn't stop here. Want to stay in some places along the way? Gotcha! 4 hours stopover maximum. Want to extend your trip? Sorry! 30 days max stay (7 days minimum, a Saturday must be included).
I do not want to jump through all the hoops even when I am at home and life is supposed to suck , and of course I am not doing that when on vacation or planning it!
All that said, I do not expect everybody to run from air miles cards into cash back. Hey, maybe you fly more often (so, there’s more chance if not this flight, then the next, that you will not find a better deal than what your earned points qualify you for), or you fly to different destinations where numbers make more sense, or you just like the feeling of flying FREE (even if math tells you otherwise). Have a closer look if you are in doubt: https://www.mbnaworldcard.com/WCapp/Ctl/display?CV_page=home.jsp. Maybe this card IS good for you. There is a choice of other rewards on it, too, so even if you make a mistake in your predictions counting on air miles, you can later take cash back from them, or a gift certificate, or just blow it off in a spa somewhere. That does feel nice.
By the way, I just noticed, MBNA also has this: https://www.applyonlinenow.com/USapp/Ctl/redirect?CV_sourceCode=S8TP&CV_MC=A000000W7X. Hmmm...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Fri Jun 04, 2004 8:49 am
Post subject: Cash Back Credit Card Vs. Air Miles Rewards Credit Card
2/14/2003 0:32 am CDT
Kitten mentioned MBNA World Points card in another topic, and even though I already know I personally have better alternatives, here is my analysis that could be useful to people trying to decide between cash back and frequent flier cards.
Air mile cards' terms (not just MBNA's) are too restrictive for me. And even if I look at the straight price of the ticket and forget about restrictions, often I can buy it cheaper elsewhere.
Specifically, MBNA World Points card qualifies you for a ticket to Europe ($800 max. price) after you spend $50,000. With a regular 1% cash back card that are a dime a dozen and available at many issuers, the cash back would be just $500, so that's good, right? Not so fast.
Just a couple days ago I received an email from a site I bought tickets from before, that I can fly from New York to Bremen, Germany (my father lives there, so I am likely to fly there relatively often), for $275 (all the fees already included) in February/March. I would have to spend just $27,500 on a simple 1% cash back card to get this ticket free, nearly half as much as with World Points.
Bad season? Maybe. Let's look at a good one. Last year I flew in August - $880 was the cheapest price I could find. Oops! I would not have qualified with MBNA because the cap is $800.
Before that? Christmas season after September 11, 2001, when nobody wanted to fly. Price? Dirt-cheap $357. Again, a cash back card is better. Plus, I bought the ticket, like, a week in advance. Ha-ha! 21 days advance purchase required with World Points. They must be shaking themselves silly with laughter over there at MBNA. (And remember, we are talking about a GOOD frequent flier card. Imagine adding an annual fee to this soup, which MOST other frequent flier cards have! I am not Italian, but I’ll say "fogedaboudit!" anyway).
Before that trip? That was when my father visited me. I am even afraid to LOOK at fine print - the passenger name is different than on the card, flight originating not in the U.S., and on and on...
Another flight of mine was from Bremen to Naples. Bought with an all-inclusive package in Germany for prices that we can only dream about here in the new world. Not worth spending your airmile points for.
Next week I am flying to Montreal, let's look at that. I paid $200. With World Points card, $25,000 charging would be needed. I would have gotten $250 cash for that from a 1% card, bought the ticket for the same $200 (AND earned more cash back for that!), AND had a very nice dinner with my friend there in Canada for the rest of free cash. Additionally, I would have blown off the 21 day MBNA’s requirement (bought the ticket two weeks in advance).
Looks like of the six real instances in my situation (ALL of my flying in recent years), in every single one of them, I would have either not qualified for free ticket at all, or would have paid more than the cash back from a regular 1% back card. And I don't just have 1%, my main card is AmEx that pays more, and before that it was Farm Bureau Bank that also paid more - twice more.
But wait, fun doesn't stop here. Want to stay in some places along the way? Gotcha! 4 hours stopover maximum. Want to extend your trip? Sorry! 30 days max stay (7 days minimum, a Saturday must be included).
I do not want to jump through all the hoops even when I am at home and life is supposed to suck , and of course I am not doing that when on vacation or planning it!
All that said, I do not expect everybody to run from air miles cards into cash back. Hey, maybe you fly more often (so, there’s more chance if not this flight, then the next, that you will not find a better deal than what your earned points qualify you for), or you fly to different destinations where numbers make more sense, or you just like the feeling of flying FREE (even if math tells you otherwise). Have a closer look if you are in doubt: https://www.mbnaworldcard.com/WCapp/Ctl/display?CV_page=home.jsp. Maybe this card IS good for you. There is a choice of other rewards on it, too, so even if you make a mistake in your predictions counting on air miles, you can later take cash back from them, or a gift certificate, or just blow it off in a spa somewhere. That does feel nice.
By the way, I just noticed, MBNA also has this: https://www.applyonlinenow.com/USapp/Ctl/redirect?CV_sourceCode=S8TP&CV_MC=A000000W7X. Hmmm...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 12:19 PM
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