Frequent Flier Mile Rewards
Delta Air Lines, Northwest Airlines, US Airways Group and United all have something in common-- bankruptcy protection. Rough stuff for those guys, but what about you and your credit-card benefits? If you've been collecting air miles over the years, you probably are a little nervous about whether or not you'll get to enjoy the fruits of your hard-work, patience, and planning. It's probably time to check out and start enjoying some cold, hard cash.
Most airline plans give you one mile for every dollar spent. According to the Wall Street Journal,www.wsj.com, if you use your miles for domestic coach flights, they end up being worth only a penny each. For example, 25,000 miles for a ticket that costs $250-- a penny per mile.
Cash Back
A more valuable consumer alternative is cash back and there are a number of cards who now offer the perk. For example, the Citi Dividend Platinum Select Mastercard and the Chase Cash Plus Rewards Visa give 5% cash back on purchases made at select grocery stores, drug stores and gas stations. They offer 1% back on purchases made anywhere else. The Fidelity 529 College Rewards Card returns 2% of purchases to fund a tax-free college savings account.
As the Journal points out, the best way to take full advantage of the deals is to diversify your credit portfolio. For example, use the Chase card or the Citi card for gas and groceries to take advantage of the 5% refund, and use the Fidelity card elsewhere for 2% tax-free college savings. It might be a hassle to carry around a pocket of credit cards, but cash-back credit cards allow you to take advantage of some of the best deals in the industry, not to mention protects you from falling victim to cash-strapped airlines.
