Choosing the Best Credit Card for Air Miles in the USA

When it comes to earning and redeeming air miles, the credit card you choose plays a crucial role. Your decision should be based on your preferred airline, travel destination, and the types of miles offered. This article will help you understand the different types of credit cards available and provide insights into which one might be the best fit for your travel needs.

The Importance of Researching Your Travel Destinations

Before selecting a credit card for air miles, it's essential to research where you plan to travel. Different credit cards may offer better rewards for specific airlines or destinations. For example, if you frequently travel with a particular airline, a card that offers optimal rewards for that airline might be your best choice. If not, you might want to consider getting a card that allows you to transfer points to various airlines, making it more flexible.

Understanding the Two Types of Airline Miles Cards

There are two primary types of airline miles reward cards:

Card Type 1: Offers a point per dollar spent. When redeemed for a ticket, these miles are worth 1 penny per mile. For instance, 50,000 miles would get you a ticket costing $500. The main advantage here is that you don’t need to worry about award travel blackout dates, and the total price of the ticket remains the same as what you pay in points. Card Type 2: Airlines-specific mileage reward cards, such as the United Miles card. These cards offer more flexibility in terms of rewards, allowing you to accumulate miles at a faster rate and use them for flights with that specific airline. However, the flexibility also comes with additional costs, such as fees for using miles and the need to book flights well in advance.

Real-World Examples and Benefits of Each Type

Let's look at a real-world example to illustrate the benefits of each type of card:

Card Type 1: Points Card

Example: Chase Freedom Unlimited

The Chase Freedom Unlimited is one of the best air miles credit cards in the USA. If you frequently travel and want a more straightforward way to earn and redeem points, this card is a great choice. Say you're flying from Houston to Singapore at the end of March, which would cost around $1,250 for a ticket. Using points earned from this card, you would only need 125,000 points to cover the entire cost of the ticket.

Card Type 2: Airlines-Specific Mileage Card

Example: United MileagePlus

On the other hand, consider the example of United Miles, where you get one "mile" of travel for each dollar spent. For the same flight from Houston to Singapore, it would cost you 125,000 miles, but you would also incur an additional fee of approximately $135. Furthermore, a round-trip ticket from Houston to Washington, DC, at the end of March, would cost you 31,700 miles plus a small booking fee.

Domestically, flying with United Saver Awards could cost you 25,000 miles for a round-trip ticket within the USA.

Personal Preference and Considerations

Ultimately, the best credit card for air miles depends on your specific needs and preferences. Here are some points to consider:

Do you have a preferred airline? If so, choosing a card that offers the best rewards for that airline makes sense. Do you need flexibility? Cards that allow you to transfer points to various airlines offer more flexibility, but might come with additional costs. Do you want to save on fees? Rewards cards with two-for-one miles or points for restaurant, hotel, and car rental expenses might be beneficial if you frequently engage in these activities.

Conclusion

When choosing the best credit card for air miles in the USA, consider factors such as your travel destination, preferred airline, and the type of miles offered. The Chase Freedom Unlimited is among the best choices, especially if you want a straightforward way to earn and redeem points. However, if you prefer flexibility and are based in a hub city, a card like the Chase Sapphire or Chase United Explorer could be more beneficial.

By doing thorough research and understanding the different types of cards available, you can find the best credit card to suit your travel needs effectively.