Dan’s Deals choices added to Best 2012 Airline Credit Cards of Super Flyers
We’ve added Dan’s Deals’ recommendations to our list of Best Airline Credit Cards of 2012 in the Wallets of Super Flyers.
His top pick is the Starwood Preferred Guest American Express for all around spending, a choice we agree with. He likes the 5th night free and Cash and Points values in the Starwood program, as well as 1:1 mile transfer to dozens of airlines.
Other cards he recommends include:
Platinum Card from American Express. He gets great value from the access to American, Delta, and US Airways lounges while traveling with his family, as well as room upgrades at luxury hotels like the Wynn and Bellagio. He also points out insurance for event tickets (concerts, sports, etc), that will be refunded if you lose them or can’t make the event.
American Express Premier Rewards. He likes the 3x points on airfare, 2x on gas and groceries, and ability to transfer points 1:1 to several airline programs.
Chase Freedom. He likes the new 5% categories every 3 months, which can include gas, groceries, dining, and more. Note if you have a Chase Sapphire Preferred these points can be transferred from your Chase Freedom instantly.
Are credit card bonus miles taxable? No, says the IRS. Maybe says Citi.
Bonus miles from new credit card accounts, checking accounts, and savings accounts are a favorite way for banks to get you signed up for their products, and for you to earn free travel.
They’re not taxable according to the IRS, but David Lazarus, the Los Angeles Times’ personal finance writer reports some Citi checking account holders are getting a surprise IRS form in the mail…
Citi decided to report the value of American Airlines bonus miles for new checking accounts to the IRS as ‘prize / award’ income, valuing the miles at 2.5 cents a piece.
So, they sent IRS Form 1099s declaring the income to many customers for American Airlines bonus miles earned last year from opening checking accounts.
Why did they do this?
The IRS is pretty clear on the matter in a 2002 brief, noting “the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer’s business or official travel.”
Well, Citi (*not the IRS to be clear*) interpreted the language on the Form 1099-MISC which says income must be reported if $600 or more in ‘prizes or awards’ are received.
And that’s where it may fall apart. The prizes and awards language may simply refer to awards within the context of a game or contest, not those earned as incentive for a financial transaction.
Since this was just sent to people who got checking account bonuses (and conveniently, not bonuses for Citi’s own Thank You program) this could be an isolated event caused by whatever middle level person responsible for checking account promotions in California. We haven’t seen signs of them sending these to people who signed up for national credit card bonus mile offers.
For now, the IRS says its 2002 brief stands, but won’t clarify whether you should pay taxes on the amount if you were sent a form 1099 by Citi. We’re looking forward to their formal stand on this.
In the meantime, we haven’t seen Chase send anything like this for its Continental Airlines checking account bonus offers.
Best 2012 airline credit cards – What’s in the wallets of super flyers
There’s a prolific group of frequent flyer bloggers who are obsessed with maximizing the value of miles and points earned and spent. Well, we checked out what six of them chose for the airline mile credit cards at the front of their wallets in 2012.
And the most common choice? The Chase Sapphire Preferred – five out of six chose it. We think it’s a great airline credit card and more. It has a lot to offer with 2x points on dining and travel spending, high quality 1:1 transfer partners (United, Southwest, Continental, British Airways, Marriott, Hyatt, Amtrak, and more) plus a 50,000 point sign on bonus. If you have ‘average’ spending to concentrate just on one card, it’s a very good choice.
The top three overall among six ‘super frequent flyer’ bloggers…
- Chase Sapphire Preferred (5 of 6 picked it)
- American Express Premier Rewards Gold (4 of 6)
- Starwood Preferred Guest American Express (3 of 6)
What surprises us a bit though….the sparing recommendations for the Starwood Preferred Guest American Express. Only 3 of the 6 had it in their top picks.
Why?
Well they seem more focused on initial sign up bonuses than ongoing features, which is perfectly valid. But it’s hard to beat their hotel night redemptions at relatively few points (10,000 or less for many free nights, or big discounts) as a great value for those of you who don’t rack up 100,000 points in a year. And you can convert points to miles at better than 1:1 on 25+ airlines (though the transfer takes a few days).
A few really like the Premier Rewards Gold American Express, despite its $175 annual fee primarily because it offers 3x points on airfare purchases. That’s a big benefit when you pay $10,000 a year for airfare, as some of them do.
To get a better sense of whether it’s right for you, try our Mile Credit Card Comparison Calculator.You can enter your typical spending in categories that earn double or triple mile bonuses like dining, groceries, or gas. Then it will factor that to give you a better idea of which cards maximize your spending habits, even factoring the annual fee.
Here are the details on which mile credit cards each frequent flyer blogger likes for 2012 and why…
- Chase Sapphire Preferred – For non-airfare travel spending and dining (2x points), and for all foreign spend (no foreign transaction fees)
- American Express Premier Rewards Gold – For airfare (3x points), gas and groceries (2x points)
- Starwood Preferred Guest American Express – Uses it for all spending that’s not travel, dining, or grocery related.
We think he has the most sound choices overall to maximize spend and get the points in easy to redeem programs.
- American Express Premier Rewards Gold – Plans to use it for $30,000 in spending – Wants to hit 15,000 point bonus for $30,000 in annual spend
- American Express Gold Business – Another $30,000 in spending - Wants to hit 15,000 point bonus for $30,000 in annual spend
- Chase British Airways Visa – Another $30,000 in spending - Wants to get a free companion award ticket that comes after $30,000 in annual spend
- Chase Sapphire Preferred – All remaining spending goes on this card (after that first $90,000!)
- Chase Sapphire Preferred – She likes the online shopping bonus at UltimateRewards.com, for foreign purchases with no fee, and all restaurant / travel expenses for 2x points per dollar.
- Continental OnePass Plus - She really likes Continental miles, and uses it to auto pay bills, which helps her get to an annual $25,000 threshold that awards 10,000 miles.
- Starwood Preferred Guest American Express – She uses it for all other spending that doesn’t earn 2x points on other cards and thinks their hotel rewards are exceptional deals — that give her a 3% – 6% cash return on her spending.
- Chase Sapphire Preferred – Likes 2 points per dollar on dining and a broad definition of travel spending that includes taxis, no foreign transaction fees, and the 7% annual point bonus.
- American Express Premier Rewards Gold – Likes the 3x airfare bonus and 50%+ bonuses on mile transfers to Delta American Express sometimes offers.
- Chase Ink Bold with Ultimate Rewards – He likes the 5x bonus at office supply stores, cellular/landline phone service, and cable service and 2x bonus on gas, hotels and motels, as well as ability to combine points with the Sapphire Preferred (but note this is a credit card for business owners)
- Chase Sapphire Preferred – Likes the 2x dining/travel bonus
- Platinum Card from American Express – Finds it to be the lowest cost access to favorite airline lounges and $200 credit
- Starwood Preferred Guest American Express for all around spending, a choice we agree with. He likes the 5th night free and Cash and Points values in the Starwood program, as well as 1:1 mile transfer to dozens of airlines.
- Platinum Card from American Express. He gets great value from the access to American, Delta, and US Airways lounges while traveling with his family, as well as room upgrades at luxury hotels like the Wynn and Bellagio. He also points out insurance for event tickets (concerts, sports, etc), that will be refunded if you lose them or can’t make the event.
- American Express Premier Rewards. He likes the 3x points on airfare, 2x on gas and groceries, and ability to transfer points 1:1 to several airline programs.
- Chase Freedom. He likes the new 5% categories every 3 months, which can include gas, groceries, dining, and more. Note if you have a Chase Sapphire Preferred these points can be transferred from your Chase Freedom instantly.
United / Continental credit card holders: Virgin Atlantic ends partnership on 2/13/12
For those of you with the United Explorer, Continental OnePass Plus, and Chase Sapphire Preferred credit cards, here’s a heads up about one airline where you could use your miles for flights.
Virgin Atlantic will no longer be available for redemption using Continental Airlines OnePass miles effective February 13, 2012.
You can make mile ticket reservations until that date, and the tickets can be for travel up to one year later, so you have the rest of 2012 and beyond to take trips with them.
This is a little disappointing, but not surprising. Virgin Atlantic was a partner of Continental Airlines but not United Airlines and now that the two are finalizing the steps of their merger have more combined US to London Heathrow flights so there is less of a need for the partnership.
Remember that Chase Sapphire Preferred points transfer 1:1 into United Mileage Plus and Continental OnePass miles. As of March 3, 2012, United Mileage Plus and Continental OnePass will merge all accounts into one United Mileage Plus program.
American Express Platinum Card: Full benefits guide
American Express doesn’t do a great job of detailing the comprehensive benefits of its $450 per year Platinum Card on its application site. Here, we have compiled a comprehensive list of U.S. based American Express Platinum Card features and benefits — to review whether you are a current card member or thinking of applying. We also include links to resources from online communities detailing experiences with American Express Platinum Card benefits.
Travel Privileges: Airline
- Airport club access (U.S. airlines): Entry for you and 2 guests (or additional children) at all American Airlines Admirals Clubs, Delta Sky Clubs, and US Airways Clubs. Continental Presidents Clubs have entry until 10/1/2011.Click here for a complete list of available clubs.
- Airport club access (worldwide): You can sign up to recieve free Priority Pass membership (usually $399 if purchased alone). This offers entry to over 600 airport clubs worldwide. Basically a club or more in every major airport, regardless of the airline you travel. Entry is for yourself, and sometimes a guest. Rules vary by club.
- $200 annual airline credit. You designate an airline each year, and you are reimbursed for up to $200 for things like change fees, baggage fees, onboard purchases, and more. Some people have reported getting credit for airline club membership, award ticket taxes, and more.
- Global Entry fee rebate. American Express will refund the $100 cost to enroll in Global Entry , the program that lets you bypass U.S. immigration lines at U.S. airports by swiping your passport at a kiosk. It’s a magnificent time saver.
- Membership Rewards First. You have the ability to transfer your points into miles in over 20 airline and hotel programs, most 1 for 1, and many with instant transfer. Airlines include Delta, Air Canada, British Airways, Virgin Atlantic, JetBlue, Air France / KLM, AeroMexico, AirTran, ANA, ElAl, Hawaiian, Iberia, and Singapore Airlines. Hotels at 1:1 or better are Priority Club (Holiday Inn, Intercontinental, Crowne Plaza), Hilton, and Best Western.
- 20% discount on ‘pay with points’ travel. You can use your points toward travel at a rate of 100 points = $1 in travel value when you book online with American Express. As a Platinum Card holder, you pay 20% fewer points than the standard rate, so 100 points = $1.20 in travel.
- Toronto Pearson Airport Priority Lane. You have access to the express security screening lanes at Toronto’s airport, normally reserved for the most frequent of flyers.
Travel Privileges: Car Rental
- National Car Rental Executive status. This normally requires 12 rentals per year, but entitles you to a guaranteed premium class car at a full size price, often saving $30-$50 per day. You also have access to the airport ’Executive Selection’ at a mid size price, which often includes premium class cars and SUVs.
- Hertz 4 hour grace period. Normally Hertz offers a 30 minute grace period when you return your car. If you book using your Platinum Card code, you get a 4 hour grace period. Just make sure you call Hertz to say you are a Platinum Card member and they’ll input the code into your profile.
- Hertz #1 Club Gold Memberhip: Normally costs $60 per year, your car is ready in the stall when you arrive, and your name in lights on the board. No need to go to the counter.
Travel Privileges: Hotel
- Starwood Hotels Gold status: Offers 4pm late check out and select room upgrades at Starwood hotels (Sheraton, W, Westin, Le Meridien, Four Points, St. Regis). Normally requires 10 stays per year to qualify.
- Fine Hotels and Resorts Program: When you book using www.americanexpressfhr.com you receive 1) room upgrade with late check-out, 2) free breakfast for 2 each day, 3) a special amenity such as spa or restaurant credit, usually valued at $50 or more. Amex claims these benefits are worth $450 or more per stay. The cost of rooms booked via American Express vary — sometimes they are less than directly through the hotel, sometimes less, and often just the same — but in each case you enjoy the Platinum Card benefits only by booking through American Express.
Other Privileges
- No foreign transaction fees. All such fees are waived when you use the card while traveling overseas. Your purchases are simply converted at the exchange rate with no additional charge.
- Cruise privileges. When you book a cruise with Celebrity, Crystal, Holland America, Princess, and Seabourne cruises among others, you get a two category room upgrade or a $300 shipboard credit, along with an amenity which is often free dinner for 2 at a premium restaurant and a bottle of premium wine or champagne in your room. You generally have to book through American Express travel, though people have reported Crystal cruises offers $550 in credit for Platinum Card holders regardless of how they book, so long as a Platinum Card is used to pay.
- $100 vacation credit. If you use American Express Travel to book a cruise or vacation package of $3,000 or more you get a $100 statement credit, valid once per year.
- Staples Center Los Angeles Platinum Lounge: If you’re attending a game or event at the Staples Cener in Los Angeles you have access to the Platinum Lounge on Suite Level B — regardles of the type of ticket you hold. Access to the Platinum Lounge for non-suite/premier guests is through the Main Concourse doors to Star Plaza VIP, located next to Team LA. Reports on the lounge say it has good prices for food and drink, but the views are not outstanding, so you’re more likely to enjoy the game at your seat and reserve lounge time for pre-game and during breaks.
- Premium seats program at Madison Square Garden, Staples Center, Home Depot Center. Amex keeps special blocks of tickets available for purchase by Platinum Card holders with premium locations. For Madison Square Garden, limit 4 tickets per game and 8 games per Card member (per sport or event). Quantities are limited. Call 800-321-RSVP (7787), 8am-11pm ET, seven days a week for reservations.
- Preferred seating at Broadway shows. Shows and events at www.americanexpress.com/entertainmentaccess have limited premium seats set aside for card holders, with Platinum Card members getting access to the best when available. To redeem an American Express Preferred Seating offer, enter the 10-digit Customer Service phone number located on the back of your Card when placing your order or look for the ‘American Express Preferred Seating’ link when booking a ticket.
- Equinox benefits. Equinox gyms offer Platinum cardholders who become members 5 free training sessions and a 50 minute massage.
- Platinum Dining Reservations. American Express holds reservations for Platinum Card members at hundreds of fine restaurants and nightclubs. Generally you need to confirm 24 hours in advance, but it can sometimes be helpful in getting reservations not otherwise available to the general public.
- Puerto Rico Dining Program. When visiting Puerto Rico and making your dining reservations through your Platinum concierge, From Monday through Thursday, you will get a second main course and dessert free of charge. From Friday through Sunday, the fourth main course and dessert are free of charge. In either case, the main entree free of charge will be the least costly among those chosen.
- 2x points on Amex travel purchases. You earn 2 points per dollar spent on travel booked at www.americanexpress.com/travel
- 10x points on Amex online shopping mall. Go to www.memershiprewards.com/earn to link to your favorite online shopping merchants and earn 10x Membership Rewards points per dollar spent.
Purchase protection
- Purchase Protection: If an item you buy with the Platinum Card is damaged, lost or stolen, Amex will reimburse within 90 days from purchase. Lost items are a unique benefit of the Platinum Card. Simply call the number provided as a member and you can file a claim. Limit: $10,000 per incident, $50000 per year.
- Buyers Assurance: Extend warranties by one year, up to five year warranty
- Best Value Guarantee: If the price of the item drops within 60 days of purchase, Amex will pay you the difference.
- Return Protection: If a merchant doesn’t accept a return, Amex will reimburse you up to 90 days from purchase, $300 per item, $1000 per year
Travel protection
- Baggage insurance: Up to $3,000 in coverage for lost or damaged baggage beyond the airline’s coverage when you use your card to purchase your ticket.
- Travel insurance: $100,000 in coverage in the case of dismemberment or accidental death.
- Roadside assistance: Up to $50 in towing or assistance benefit for each occurrence — call the Amex hotline provided when you get your card. This is valid for both your personal car as well as rentals and borrowed vehicles.
Premium Global Assist
- 1-800-345-AMEX hotline for all travel emergency questions
- Complimentary medical evacuation (Platinum exclusive). If the Global Assist assigned physician deems it medically necessary, American Express will pay for transport for an ill or injured Cardmember or qualified family member travelling abroad back to the United States. If the physician deems this impossible, American Express will pay for transport to the nearest facility the physician deems suitable. This does not cover medical expenses incurred at the facility, only transportation.
- Complimentary repatriation of remains (Platinum exclusive). In the unfortunate, and we hope never experenced by any reader, circumstance that the Cardmember or qualified family member passes away while travelling abroad, American Express will pay for remains to be transported back to the United States.
- Lost passport assistance. Global Assist will work the necessary channels to help you travel again should you lose your passport.
- 24 hour card replacement. American Express can get you a new card within 24 hours and help you cancel all accounts, even competitors’, in the event you lose your wallet.
- Emergency hotel check-in. American Express can front the credit needed to check you into a hotel in the event you lose your cards.
Other resources to consider
Spending a $450 annual fee on a card is worth some time to consider. For many it is well worth it, but we offer the following additional resources to help understand whether it is worthwhile for you:
- American Express’ information and application sites. To review terms and conditions, as well as apply for the card. Also includes over 4,000 reviews of the card.
- Current intro bonus points offer. Available on our main Platinum Card review page, updated as the bonus offers change.
- Platinum Card ‘to-do’ list. From the frequent flyer community at FlyerTalk.com, discussion on things to sign up for and learn once you receive your card.
- Cruise benefit discussion. From the frequent flyer community at FlyerTalk.com, discussion on cruise related benefits, including up to $550 in onboard credit with Crystal Cruises for using the Platinum Card.
- Fine Hotels and Resorts discussion. From the frequent flyer community at FlyerTalk.com, reports of benefits and upgrades received from hotels booked through the Fine Hotels and Resorts program.
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.
Best Southwest credit card? It might not say Southwest on it
If you fly Southwest airlines and value their Rapid Rewards points, there are two personal Southwest credit card options that are Southwest branded – The Southwest Rapid Rewards Plus credit card and Southwest Rapid Rewards Premier credit card.
But you may not know you have an alternative to the Chase Southwest Airlines Rapid Rewards credit cards.
It’s called the Chase Sapphire Preferred. And as of January 5, 2012, the points you earn can be transferred instantly 1:1 into your Southwest Rapid Rewards account, free of charge, with no limits. Click here to see how that works.
The differences between the Southwest credit cards and the Chase Sapphire Preferred come down to a few areas
- Point bonuses on spending. The Chase Sapphire Preferred earns 2x points per dollar on all dining and travel expenses. The Southwest credit cards earn 3x points per dollar on Southwest purchases only, and 2x points per dollar on car and hotel reservations made on Southwest.com, but no other travel spending. There is no bonus for dining.
- Annual bonuses. The Southwest Rapid Rewards credit cards earn an annual point bonus of 3,000 – 6,000 points. The Sapphire Preferred earns an annual point bonus that is 7% of the points you earn in a year.
- Point transfer. The Sapphire Preferred lets you transfer points to many other airline and hotel programs beside Southwest, including United / Continental Airlines, British Airways, Amtrak, Hyatt, Marriott, Priority Club, and Korean Airlines. All are 1:1 instant transfers with no fee.
- Annual fees. The annual fee of the Chase Sapphire Preferred is $95, waived the first year. The Southwest Rapid Rewards Plus is $69, and the Southwest Rapid Rewards Premier is $99. The Southwest cards do not waive the first year fee
- Southwest status. The Southwest credit cards let you earn points toward A-list and Companion Pass status. Points transferred from the Chase Sapphire Preferred don’t count toward status levels.
- Bonus mile offers. The introductory bonus of the Chase Sapphire Preferred is 50,000 points. Currently, the offer on the Southwest credit cards is 25,000 points.
| Southwest Rapid Rewards Plus | Southwest Rapid Rewards Premier | Chase Sapphire Preferred | |
|---|---|---|---|
 | |  |
|
| Annual fee | $69 | $99 | $95, $0 first year |
| Bonus mile offer | 25,000 | 25,000 | 50,000 |
| Annual miles bonus | 3,000 | 6,000 | 7% of earnings |
| A-List / Companion status earning | Yes | Yes | No |
| Point transfer | No | No | Yes, 5 airlines, 3 hotel programs |
| Dining bonus | No | No | 2x points / dollar |
| Travel bonus | 2-3x on Southwest.com | 2-3x on Southwest.com | 2x points / dollar |
| Apply Now | Apply Now | Apply Now |
Which Southwest credit card to choose?
You should consider the Chase Sapphire Preferred if you…
- Spend $250 or more per month on dining or travel expenses that earn 2x points with the Sapphire Preferred. That bonus earns you more than the 6,000 point annual bonus you would receive with the highest tier Southwest credit card.
- Want the flexibility to transfer your points to United, Continental, British Airways, Amtrak, Hyatt, Marriott, and others.
- Value having no foreign transaction fees. The Southwest credit cards have 3% fees on foreign purchases, while the Chase Sapphire Preferred has none.
- Care about earning Southwest A-list or Companion Pass status. Points earned from Southwest credit card purchases count toward this each year at varying levels. Points transferred in from the Sapphire Preferred don’t count toward this status.
- Spend less than $250 per month on dining or travel purchases, such that the Chase Sapphire Preferred bonus is less valuable to you.
- Only care about flying where Southwest flies, and don’t want to earn points that can be used on other airlines like United, Continental, British Airways, or hotel programs like Hyatt and Marriott.
In general, it’s hard to go wrong with the Chase Sapphire Preferred because it is so versatile. But, if Southwest flights are your primary goal the Southwest Rapid Rewards Plus and Southwest Rapid Rewards Premier credit cards are good options.
More resources to consider
Apply now for the Southwest Rapid Rewards credit cards using this secure link.
Chase Sapphire Preferred secure link to application
Chase Sapphire Preferred Full Benefits Guide
Chase Sapphire Preferred review
