WAY off topic but need help on Credit Cards with Travel rewards and NO annual fee

[supportivemom]

Posted: 5/7/16 at 2:17pm

There are so many travelers in this group so I thought it would be perfect to ask this-  my 21 year old daughter is looking into getting a Credit Card that has travel rewards.  One with no annual fees-ever.  We saw one from Discover and it looked too good to be true.  Can anyone recommend a card that they use and your experience with it?  Thank you all!  I appreciate all of your help!  

[phantom8019]

Posted: 5/7/16 at 5:48pm

Discover does offer some pretty amazing benefits but the downside is some businesses accept only Visa and Mastercard, but not Discover.

[supportivemom]

Posted: 5/7/16 at 5:55pm

Thank you for your reply!  That was my thought- that Discover is not accepted as many places but if she can use points to buy a plane ticket, that would help.  There are a couple of Visa and MC- like Capitol One, Bank Americard, and Barclays.  Anyone have any experience with these?  Thanks again!

[ArtMan]

Posted: 5/7/16 at 7:11pm

Supportivemom, Is your daughter trying to find a card that will give her airline miles?  I'm not sure what you mean by travel rewards.  If she is looking for miles, I have used the following cards.  I had the American Airlines credit card that gave me 50,000 bonus miles if I spent $3000 in three months (easy for me).  This card also awards miles for purchase and the first year there is no annual fee.  I used those 50,000 miles to fly to Guatemala April 2016 and Las Vegas June 2016.  The international flight only cost me $60 for taxes and domestic $11.  I have also used the Jetblue American Express.  They gave me I think 30,000 bonus miles if I spent $2000 in three months (again easy for me).  They also reward miles for dollars spent.  I used those miles for three roundtrip to NYC, the last being May 18 2016.  The first year is also no annual fee.  I have also used the Delta American Express that gave me 40,000 bonus miles for spending $3000 in three months.  That card also is free for the first year.  Southwest also offers their card with varying bonus miles.  I get offers weekly for a travel credit card.  (I can't remember the name).  But I throw it away because there is no bonus.  You have to look at the bonus miles that they offer.  American Airlines is pretty much always 50,000.  The JetBlue and Delta vary and change weekly.  Also, which airline your daughter would use more is important.  If she is flying to Jacksonville (see I remember you) then Jetblue is great.  But unfortunately, they have restructured their miles program and you need more miles now then you did previously.  Hope this helps.  Feel free to ask if you have any questions.

[supportivemom]

Posted: 5/7/16 at 8:41pm

Yes!  Thank you so much!  That's exactly what she is looking for and thank you so much for the information!

[supportivemom]

Posted: 5/7/16 at 8:44pm

Oh- and my daughter lives in LA now.  She graduated a semester early from college this past December and is now working in the heart of Hollywood in digital advertising.  She wants to go to Australia and New Zealand next.  Thanks for remembering me!

[ArtMan]

Posted: 5/7/16 at 9:15pm

Those two destinations may require alot of miles.  Flying from LA may not be as bad.  I would check first which airlines fly there.  If American does, that would be the card to research first.  Make sure though, the bonus is 50,000 miles.  Also they offered additional bonus miles for other options, which I did not use.  Also United has a credit card that also offers bonus miles for spending so much in the first three months.   I have had all of these cards and cancelled after the first year.  I gave them the option of waiving the annual fee which they refused so cancelling was really on them.

[SmoothLover]

Posted: 5/8/16 at 1:36am

There is a new Jet Blue card through Barclay with no annual fee. Spend 1000 in the first 3 months get 10,000 miles. They also have one with an annual fee where you get 30,00 miles. Amex 20/20 card spend 1000 in 3 months get 10,000 points which can be transferred to Freq. flyer miles, no annual fee. American Airlines Business card 50,000 miles after spending 3000 in 3 months no annual fee for the first year (cancel it before the year is up). They have another one that is anywhere from 30,000 to 50,000 with the same requirements which is not a business card. Both cards are through Citibank, Bank of America and Barclay both have a travel card spend 1000 in first 3 months get 200 dollars you can redeem for travel, hotel, taxi and subways. No annual fees. Delta has one through American Express which offers a lot of miles with an annual fee waived the first year. Frontier has one through Barclay and spirit has one also. There is a Citibank Thank You Rewards Card where you get 30,000 miles after spending so much and there is no annual fee. Book travel through their web site and points are matched dollar for dollar. I have had tons of cards over the years and have probably taken 20 or more round trip flights without paying anything.

United has their cards through Chase and they waive their annual fee for the first year and you can get up to 50,000 miles. You have to spend 2 or 3 thousand in three months.

Often credit cards will waive the annual fee beyond the first year. Citibank asked me to spend the amount of the 2nd year annual fee and they would refund the amount resulting in my keeping the card for another year by just spending 100 dollars.

Capital One has some good reward cards as well. You earn points which you can spend on flights. The annual fee card allows you to get more with each dollar you spend but they also have one with no fee. I am sure you have seen all of the J. Garner commercials!!

I think the best no annual fee card on the market is Citibank double cash where you get 2% on all purchases. If you charge a lot it ads up fast. Pay all of your bills with a credit card rather than a debit card unless your debit card gives you rewards. I have some reward category cards with quarterly promotions and that can ad up when the categories are grocery stores and gas. Amazon card through Chase gives you 2 per cent at drug stores and 3 per cent on Amazon.com and there is no annual fee. The blue Amex gives you 3 percent back on groceries and there is no annual fee.

I feel like I just wrote a novel......



Updated On: 5/8/16 at 01:36 AM

[LarryD2]

Posted: 5/8/16 at 8:22am

I use the American Airlines credit card that ArtMan mentioned, and like it very much. The 50,000 mile bonus is a great boon. There is no annual fee for the first year; however, an annual fee is charged thereafter ($100/year, I believe). Just be aware of that.

[SmoothLover]

Posted: 5/8/16 at 9:28am

You can always barter with credit card companies when you call to cancel. Often times they will give you more miles to stay with the card or as I said previously they sometimes waive the fee if you ask.

Also my cancelling a lot of cards over the years has never hurt my credit rating.

[ArtMan]

Posted: 5/8/16 at 10:16am

SmoothLover, I agree that cancelling cards has not affected my credit rating either.  Some on here would argue the opposite.  I have cancelled cards for years and I have a flawless rating.  However, I have never had any card company waive the annual fee or offer me more bonus to stay.  They usually respond with "okay".  It might be that I NEVER carry a balance, always paying in full monthly, so they are not making the money off of me like from many others   Capital One is the card that I couldn't remember in my earlier post to SupportiveMom.  I get promotions from them weekly.  I toss them away because it is not a specific enough rewards card to my interest.

[LarryD2]

Posted: 5/8/16 at 10:37am

I, too, have never had my annual fee waived, and I've tried. I spend a lot of money on the card, but like ArtMan, I pay my balance in full every month -- so they don't make any money from me on interest. That could be why. For me, the good perks are enough to justify the yearly fee.

I can also attest that canceling cards has never affected my credit score.

Updated On: 5/8/16 at 10:37 AM

[PalJoey]

Posted: 5/8/16 at 11:57am

"Canceling cards" is good for your credit rating iof you pay them off and then cancel them. Transferring balances from one to another can give you good points and benefits, but it will not significantly help your credit crating.

Paying on time and paying off the things that help your rating. Having too many cards with high credit limits--not your actual balance but the amount they will allow you to spend even if you don't--that's what hurts you.

[supportivemom]

Posted: 5/8/16 at 3:33pm

Thank you so much everyone!  M daughter is great at paying off her bills on time and does not like to be in a lot of debt- especially after she just saw her college loan balance!  lol  I will pass this information on to you!  Thank you for taking the time to respond and thanks for the novel  Smooth Lover

[SmoothLover]

Posted: 5/9/16 at 3:12am

I never carry a balance either and I usually don't spend more than 1000 dollars a month spread out over several cards. I am not sure why Citibank waived the fee. It happened with one or two other cards. My point is that it never hurts to ask. I have had credit card companies give me a credit for not cancelling too although the credit was not more than 25 dollars. I called to cancel a Discover card and they switched the card over to the 5% categories card and gave me a credit too.

The other point I wanted to make since I have learned this in the last decade; you can apply for some cards you have already had and get the rewards again. You just have to wait a few years to do so.

[supportivemom]

Posted: 5/9/16 at 3:27pm

Agree! It NEVER hurts to ask!  I did that with financial aid offices when my kids went to college!  Wow- when I first joined this board- it was 9 years ago!  So much has happened!  :)  I have met the most amazing people on this board and I appreciate all of your input!