Saturday, December 14, 2013

Air Miles from Credit Cards



Everybody likes to have a little kickback benefit from spending their money..  and some take it to the extreme.

Natalie Keener: Hungry much?
Ryan Bingham: Our business expense allots forty dollars each for dinner. I plan on grabbing as many miles as I can.
Natalie Keener: Okay, you got to fill me in on the miles thing. What is that about? You're talking about, like, frequent flyer miles?
Ryan Bingham: You really want to know?
Natalie Keener: I'm dying to know.
Ryan Bingham: I don't spend a nickel, if I can help it, unless it somehow profits my mileage account.
Natalie Keener: So, what are you saving up for? Hawaii? South of France?
Ryan Bingham: It's not like that. The miles are the goal.
Natalie Keener: That's it? You're saving just to save?
Ryan Bingham: Let's just say that I have a number in mind and I haven't hit it yet.
Natalie Keener: That's a little abstract. What's the target?
Ryan Bingham: I'd rather not...
Natalie Keener: Is it a secret target?
Ryan Bingham: It's ten million miles.
Natalie Keener: Okay. Isn't ten million just a number?
Ryan Bingham: Pi's just a number.
Natalie Keener: Well, we all need a hobby. No, I- I- I don't mean to belittle your collection. I get it. It sounds cool.
Ryan Bingham: I'd be the seventh person to do it. More people have walked on the moon.
Natalie Keener: Do they throw you a parade?
Ryan Bingham: You get lifetime executive status. You get to meet the chief pilot, Maynard Finch.
Natalie Keener: Wow.
Ryan Bingham: And they put your name on the side of a plane.
Natalie Keener: Men get such hardons from putting their names on things. You guys don't grow up. It's like you need to pee on everything.


From one of the most useful & easy ways of spending money (ie. credit cards) comes a little travel benefit in the form of air miles for Frequent-flyer programs (FFPs).


There is no lack of choices for air miles cards and no lack of comparison posts. See here and here.

In fact, you can even go so far as to get rolodex full of credit cards to maximize air miles conversion from credit card dollars/points from various activities. But I just find it tedious to do so. Before the inflation of air miles conversion into actual air tickets (IAMC), once upon a time, it was worthwhile a person's while to collect these air miles because:


  • Kickback benefit from Non-Discretionary Spending 
  • Non expiry of points
  • Alignment with interest in travel 
  • Travel with Family
  • Feel a Significant benefit.


To minimize discretionary spending, it is easier to have just ONE card of the following features:


  • Visa/Mastercard card
  • Immortal Lifespan of Air Miles/points
  • Conversion into multiple FFPs.


For this purpose, my choice is Citibank PremierMiles card. However, with IAMC kicking into gear, unless you spend a fair bit, the points benefit per dollar may point you towards cashback cards.