Membership Rewards 40% British Airways transfer bonus!

American Express Membership rewards has announced a 40% transfer bonus to British Airways Avios through January 31, 2014! This means if you transfer 100,000 Membership Rewards points you will receive 140,000 British Airways Avios.  This is one of the best transfer bonuses for BA Avios I have seen.  I jumped on a 30% transfer bonus to BA right before I cancelled my Amex Gold card and netted a cool 122,000 Avios which I then used for my trip to Mexico and many more trips as well. If you have read our article on When to use American AAdvantage Miles vs British Airways Avios then you know how valuable BA Avios can be!  I use them all the time for domestic and Central American travel and you should too! Continue reading “Membership Rewards 40% British Airways transfer bonus!”

Should I get a cashback or a miles card?

Reader Javier asked recently in the comments on this article: “Keith turned me on to your site on Facebook. I wanted a little direction. I have the Capital one Venture card with 2x per dollar spent. I crunched the numbers for last month and if I switched to the Chase card I would be down about 3200 points/miles. Capital One doesn’t necessarily use the miles redeem system, they just reimburse you for the travel based on the amount of the ticket. How would I be able to utilize your system with Capital One?”Credit Card Question Mark

I started writing a quick reply but it quickly got more involved with examples so I wanted to make this into a more comprehensive post that I could refer people to in the future since this is a common question. This is a long post, but read and digest it slowly because it is an important one. If you don’t want all the details, skip to the bottom to the Conclusion TLDR section.

What is the difference between a cashback card and a miles card? Continue reading “Should I get a cashback or a miles card?”

Reader Question: What is the difference between miles and points?

One of the things that trips up newbies as they go through our Getting Started Guide and our Easy Quarter Million program is that we sometimes use Miles and Points interchangeably.  Why do we sometimes say one and sometimes the other and is there a difference?  To understand, you need to look at the history of the frequent flyer programs.

History of Mileage Programs

Texas InternationalBack in 1979, Texas International Airlines created the first Frequent Flyer program that gave you “miles” for each mile flown and then gave you rewards for the accumulated miles.  Other airlines eventually followed suit with mileage based frequent flyer programs of their own.  So far, so good.  The problem came when hotels wanted to have loyalty programs too.  Miles doesn’t make as much sense when it comes to hotel rooms and while “Nights” would have been easy, it made it hard to offer promotions without strange fractions so they came up with “Points” instead.  Almost all of the hotel programs award points based on dollars spent which makes it fundamentally different than airlines which are independent of price.

Things get more complicated

Chase Ultimate RewardsWhen they started to tie credit cards to award programs, it initially was pretty straightforward.  One mile or point for each dollar became the standard.  But when American Express came out with their Membership Rewards program and then Chase followed with Chase Ultimate Rewards it created a new type of Hybrid program.  If you look at our Top Credit Cards page you will see what I mean. Hybrid programs allow you to redeem your points for cashback, merchandise, or transfer to both airline and hotel programs.  This additional flexibility increases the value substantially.  If you are a few thousand miles short for an award ticket, transfer some points to your airline of choice.  If you have a great fare where you will earn a ton of miles, maybe using the points to pay cash for the ticket makes sense, etc.

Things get even more complicated

Arrival BannerIf that wasn’t enough, some new credit cards have programs that call themselves “miles” programs but really are cashback programs.  For example, the Barclaycard Arrival PlusTM World Elite MasterCard® gives you two “Miles” for each dollar spent, but those miles can’t be transferred to any airline or hotel program.  Rather they have a fixed redemption value of 1% when you use them for travel expenses.  So this is really a cashback card masquerading as a miles earning card.  But that is why you are reading this blog to make sense of all of this, right?

So what is the value of a point or mile?

I will give you some rules of thumb in a minute, but first want to say that the value can be highly variable depending on how you want to use them.  For example, if you redeem 25,000 American Miles for a flight from Miami to Orlando that would have cost you $119 to buy, you are only getting about 1/2 a cent per mile ($0.005 cents per mile).  If you redeem 100,000 American Miles for a business class ticket to Europe that would have cost you $5,000, you are getting 5 cents per mile ($0.05 cents per mile).  So you can get 10 times the value for your miles if you are smart about it! Whether I would actually ever pay $5,000 for that ticket is something that needs to be considered in determining value but I’m not going to discuss that today.

For some rules of thumb I usually won’t redeem airline miles unless I get at least 2 cents of value on the ticket.  Hotel points are more variable than airline miles, with SPG and Hyatt points being the most valuable at around 1 cent per point (although I have gotten as much as 8 cents per points with SPG before with cash and points bookings) but with other hotel programs you are lucky to get 1 cent per point in value.  Membership Rewards and Chase Ultimate Rewards are the most valuable I would say at a minimum of 2 cents per point since you can transfer them to multiple airlines.

Conclusion

I hope this shows you the difference between miles and points and how the value can vary depending on how you redeem them.  The best way to learn the tricks of how to get the most value is by reading our articles here on Travel With Miles!

As always, feel free to comment with any questions and follow me on FacebookTwitter and Instagram!

How to transfer your American Express Membership Rewards points to Airline Miles.

Have you liked TravelWithMiles on Facebook yet or followed us on Twitter?  Make sure to do it today so you don’t miss any of our great deals to travel the world!

American Express cards such as the Green Card, the Amex Business Gold Rewards Card, the Amex Premier Rewards Gold Card, the Amex Platinum Card, and the Amex Business Platinum Card all earn Membership Rewards points when you spend.  One of the great benefits to this type of points is the flexibility they provide. One way to use Membership Rewards points is using their Pay With Points option which gives you a value of 1 cent per point toward travel booked with Amex Travel, on Amazon.com or on their online shopping mall.  However the best value in my opinion is when you transfer those miles to their partner airline or hotel programs.  Today we are going to show you how to transfer your points to airlines for booking free air travel. Start by going to the Membership Rewards web site , logging in, then clicking on Travel.

Amex Membership Rewards Transfer 1You will then see the option to Transfer Points to airlines.

Amex Membership Rewards Transfer 2Hit Transfer Points and you will see the transfer screen with the available airline options.

Amex Membership Rewards Transfer 3If you click on Hotels on this page, you will see the possible Hotel options.

Amex Membership Rewards Transfer 4If there are transfer bonuses available, you have to click on the name of the transfer partner.   These bonuses can be as much as 50% so make sure to check them out for a way to make your points go even further!  I used a 30% transfer bonus with British Airways a while back to turn 94,000 MR points into 122,000 Avios Miles!

I am going to assume you have already found the flights you want on one of their airline transfer partners such as British Airways.  For example, if you want to go to Cancun from Miami for you and a friend, it is 9000 British Airways Avios round trip each.

BA CUN

So to transfer 18,000 Avios from your Membership Rewards account, you would simply click on the British Airways icon on the Transfer Points screen, and the following screen appears.

Amex Membership Rewards Transfer 5

As you can see, Amex is currently having a 40% transfer bonus with British Airways so you would only need to transfer 13,000 MR points to get the 18,000 Avios needed for your trip.  What a deal! Once you click transfer it can take up to 48 hours for transfers to be completed, but it will usually be quicker so you can hopefully grab those award seats while they are still available.

So there you have it!  How to transfer points from Membership Rewards to Airline Miles! As always, reply with any questions and follow me on Google+FacebookTwitter and Instagram to make sure you don’t miss any great info!  And don’t forget to share this article with anyone who might be interested using the handy social share buttons right below this post!

 

More free $$ from American Express Sync with Best Buy, CPK and Walmart.com

I have written about these deals in the past and another three just popped up that I will be taking advantage of.

You will need one of these cards to take advantage of these offers (although it might appear on any Amex so check yours!):

The basics

  1. Register online at Americanexpress.com for both promotions for all of your cards
  2. Buy $250 in gift cards at Best Buy, a $40 gift card to California Pizza Kitchen at your local CPK, spend $75+ at Walmart.com
  3. Automatically get a $25 credit for the Best Buy purchase, $10 for the CPK purchase, and $15 for the Walmart.com
  4. Liquidate the giftcards by using them or Cardpool

The Details

1. Register online at americanexpress.com for both promotions for all of your cards

Go to americanexpress.com and log onto your online account.  On the bottom there will be a box labeled My Offers that looks like this.

Best Buy Amex Sync

There will be a number of available offers, but the ones from Best Buy, California Pizza Kitchen and Walmart.com are the ones I am focusing on today.

Click on the Get offer button next to it and a screen that looks like this will pop up. Click on Add to Card.

Best Buy Amex Sync 2

2. Buy $250 in gift cards (or purchases) at Best Buy, a $40 gift California Pizza Kitchen in store, and $75 in purchases at Walmart.com.

For Best Buy, you will need to go into store if you want to get the $200 Visa Gift cards, or if you actually need some electronics you can buy them online.  The Best Buy closest to me only has Visa Gift Cards (variable load from 25-$200 with a $5.95 fee), iTunes and Best Buy Gift cards, although I know some places have Amazon.com GCs and others. I bought a $200 Visa GC and a $50 Best Buy gift card.  Note this needs to be $250+ all in one purchase, not separate purchases.

For California Pizza kitchen you will need to physically go into a location near you on their participating locations list and buy a $40 gift card.

For Walmart.com, just go to their web site (after checking what cashback you want to get from Cashbackholic.com ) and pick your stuff you want.  As long as the total is over $75, it should qualify.

Since I have the SPG Business Amex, I will get 315 SPG points ($365 for the purchases – $50 in credits) for these purchases.

3. Automatically get a $25 credit for the Best Buy purchase, $10 for the CPK purchase, and $15 for the Walmart.com purchase.

Almost immediately after you make the purchase, you will get an email from American Express thanking you for your purchase at the merchant, although it did take up to an hour for one of my purchases.

4. Liquidate the giftcards by using them or sell at Cardpool

If you have purchases planned at Best Buy then you can simply use that gift card.  The same goes for the CPK gift cards if you like the food at California Pizza Kitchen.

If you want to get your cash back, it is still a money maker to sell the gift cards at Cardpool.  As of today, you can get $45 for the $50 Best Buy gift card.  A $40 gift card at CPK is only selling for $28 so I wouldn’t do that offer unless you actually wanted to eat there.

Conclusion

This certainly  isn’t the biggest deal in the world, but they can’t all be 264,000 points at once :).  Little deals like these help to offset the annual fees that you pay for the Amex cards.

50,000 point offer is back for Business Gold Rewards Card from Amex!

AmexGoldBanner

Edit 12/11/2013: This offer is no longer available.  There is currently no signup bonus for the Business Gold Rewards card.

American Express just released an offer for their Business Gold Rewards card of 50,000 Membership Rewards points after spending $5,000 in 3 months.  I talked in this post about how to apply for business cards even if you aren’t some big corporation using your personal credit information.

Today, I am going to show you the easiest way to meet the $5,000 spending requirement without really spending anything!

So you apply for the card and are approved.  Perfect!  Amex has great customer service and they will get your card to you within a few days.

While you are waiting to get your card, sign up for a Bluebird account.  Read my article on what the Bluebird is all about if you don’t already know.

Once you get your card, go to your local CVS and buy two $500 Vanilla Reload cards which will be a total of $1007.90 ($500 each plus a $3.95 fee each).  They will look like this.

20121124-224620.jpg

Read this article I wrote about using the Bluebird for paying your rent to see how to load the prepaid cards on your Bluebird account (which is really quite simple and only takes a few seconds).

You can only load $1000 a day onto your Bluebird account and most CVS will only let you buy $1000 in prepaid cards per day so it will take you 5 days to get $5,000 into your Bluebird account.  Once you have the $5,000 in your account, then we set up your new Amex as a bill to be paid from your Bluebird account (just like we set up your landlord in this Bluebird article).  Then we use the $5000 in the Bluebird account to pay off the Amex.  This whole process can take as little as 7 days.  And you will be the recipient of 55,000 membership rewards points! (50,000 for the bonus and $5,000 for the purchase of the reload cards).

This whole thing really is this easy!  Don’t make it more difficult than it is!

  1. Get Credit Card
  2. Reach minimum spending by buying Vanilla Reload cards
  3. Deposit Reload Cards into your Bluebird account
  4. Use Bluebird balance to pay off credit card
  5. Get your almost free miles and come travel with me!

At this point you will have a paid off Amex which you can then use whenever you have to buy airfare (since it gives 3X points on airfare).  That is what I use mine for mainly or when I need the additional Warranty Protection that Amex provides.

So what are you waiting for?  Apply now and get travelling!

This content is not provided or commissioned by the company whose products are featured on this site. Any opinions, analyses, reviews or evaluations provided here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Advertiser. This site may be compensated through the Advertiser’s affiliate programs.

2000 Free Miles from MilleMiglia program of Alitalia airlines.

Alitalia (an Italian airline that is a member of skyteam) is having a promotion until March 30 where you can get a free 2000 miles just for signing up for their frequent flyer program!

alitalia

 

There is another 2000 available after your first flight with Alitalia then 2000 more for “transactions with Alitalia and its Partners in the ambit of the Millemiglia program.”  From what I have seen this means that a 1,000 transfer from American Express Membership rewards to Millemiglia should work to activate the extra 2000 Welcome Bonus miles.

So to recap, sign up for MilleMiglia account, then transfer 1000 Membership Rewards Points to that new account, and get 5000 miles total!  Or if you don’t have an Amex, then just take the 2000 miles for signing up.

Enjoy!

The 75,000 point American Express Business Gold Rewards offer is back!

Edit March 14 – This offer, unfortunately came and went quickly and is no longer available.  

I have written in the past about the limited time 75,000 Point Business Gold Rewards Card from American Express. I got this card myself last year.  In the previous post I just linked I talked about different ways to use those points such as a trip for 4 to Bogota or a trip to Paris.  Today I am going to talk about why you can apply for a business card even if you aren’t some big corporation.  But before I get into that, here are the terms of this limited time offer that expires March 14th.

  • 75,000 Membership Reward points after you spend $10,000 within the first 4 months
  • No annual fee the first year, then $175
  • 3x Points on Airfare, 2x points on advertising, gas at standalone US gas stations, and shipping, 1x on everything else.

This is a charge card not a credit card which means the balance has to be paid off each month in full, and carrying over a balance isn’t possible which helps some people stay in control of their budgets. I like to use this card whenever I have any airline spending (such as taxes on award tickets) because it gives me 3X points on airfare.  Click here if you are already convinced and ready to apply!

How you can apply for a business card if you are just an individual.

When people see a great offer for a business card, a lot of times they get scared off because they don’t think they have a business, or so they think.  Many of us have small businesses that we don’t even think about.  Have you ever bought anything at a yard sale and then sold it later on craigslist or ebay?  Then you have a business!  Have you ever bought anything in bulk then resold individually?  Then you have a business!  Do you have a flair for decorating people’s houses, or cleaning, or help people with their finances?  Any of these could be your business!

There isn’t a requirement to have an office or a business phone number or business cards or anything like that.  Many people get business cards just to help with accounting by having all of their spending in one place, but there is no reason you can’t put personal spending on the card as well. In the example of the Amex Gold card here is how you might fill out the application for an ebay or reselling type business:

amexbusinessapplicationYou use your SSN in the Federal Tax ID section since you are a sole proprietor (that means the business is just you and not incorporated). On the next screen you would put in your personal details which would be very similar to your entries on the first page. They claim a decision in 60 seconds but sometimes it takes a few days.

This is the best offer for this card I have ever seen and there is no reason to wait if you want these points.  This offer normally comes around two or three times a year so if you aren’t in a position to take advantage of it right now it isn’t the end of the world, but it is a great time!  If you are worried about meeting the $10,000 spend requirement I will be writing an article about how to easily reach it in two months without really spending much at all!   As usual, if you have any questions regarding anything, feel free to add it in a comment!

Free Miles and credits from Amex with Costco and California Pizza Kitchen

American Express cards, even though they almost all have an annual fee provide value way beyond the fee cost and this offer is a great example. I personally have two Amex cards, the Business SPG Amex and the Premier Rewards Gold Business Amex and took advantage of these offers on both of them.

American Express has been running a series of promotions called Sync that give you special offers for syncing your American Express card to your Facebook, Twitter or Foursquare.  I wrote about how I made $100 during a previous promotion with Dell a few months back.  This offer isn’t quite as good, but it is still free $$ and miles so it was worth my time. The offers are $25 back on a purchase of $100 or more at Costco.com and $10 back on a purchase of $25 or more at California Pizza Kitchen. This offer also doesn’t require you to connect your social networking to your account which will be important for some.

You will need one of these cards to take advantage of these offers:

The basics

  1. Register online at Americanexpress.com for both promotions for all of your cards
  2. Buy $100 Gift Card at Costco.com (must be a member) and $25 gift California Pizza Kitchen in store
  3. Automatically get a $25 credit for the Costco.com purchase and $10 for the CPK purchase
  4. Liquidate the giftcards by using them or Cardpool

The Details

1. Register online at americanexpress.com for both promotions for all of your cards

Go to americanexpress.com and log onto your online account.  On the bottom there will be a box labeled My offers that looks like this.

There will be a number of available offers, but the ones from Costco.com and California Pizza Kitchen are the ones I am focusing on today.

Click on the Get offer button next to it and a screen that looks like this will pop up. Click on Add to Card.

Once you have added both offers, repeat the process for any other Amex cards you have.

2. Buy $100 Gift Card at Costco.com (must be a member) and $25 gift California Pizza Kitchen in store

Now log onto Costco.com and select the item from the list on the left that says Gift Cards, Tickets, and Floral and choose the cash cards and gift certificates option.  Add a $100 gift card to your cart and then check out, using your Amex card for payment.  Repeat this process with any other Amex cards you have.

For California Pizza kitchen you will need to physically go into a location near you on their participating locations list and buy a $25 gift card.  Make multiple purchases if you have multiple Amex like I do.

Since I have the SPG Business Amex and the Business Gold Rewards Amex, I will get 90 SPG points and 90 Member Rewards Points ($125 for the purchases – $35 in credits) for these purchases.

3. Automatically get a $25 credit for the Costco.com purchase and $10 for the CPK purchase.

Almost immediately after you make the purchase, you will get an email from American Express thanking you for your purchase at the merchant, although it did take up to an hour for one of my purchases.

4. Liquidate the giftcards by using them or sell at Cardpool

If you have purchases planned at Costco (and I know $100 is pretty easy for me to spend there once you try a free sample or two) then you can simply use those gift cards.  The same goes for the CPK gift cards if you like the food at California Pizza Kitchen.

If you want to get your cash back, it is still a money maker to sell the gift cards at Cardpool.  As of today, you can get $88 for the $100 Costco gift card and $17.50 for the CPK gift card.  So if you just wanted to sell them and move on, you would make $105.50 for $90 in expense.  Don’t forget that you get 90 miles or points from your purchase too!

Conclusion

This certainly  isn’t the biggest deal in the world, but they can’t all be 264,000 points at once 😉.  Especially if you have multiple Amex cards like I do, you can do several of them at one time and multiply your earnings.  And little deals like these help to offset the annual fees that you pay for the Amex cards.

The rest of the story on the Target Giftcard Bonanza

For one day last month, Target had an online sale where you could buy $100 gift cards for $90.  I was able to get 16 of them after they limited people to only 10 cards (they allowed me 16 for some reason, lucky eh?).  While Target giftcards are definitely useful, I was mainly buying them to help meet the $10,000 spend requirement on my Amex Gold Business Rewards card I got a while back.  And once the bill came due, I wanted to get the cash back out to pay it.  I could have sold the gift cards for approximately 92% via PlasticJungle or ABC Giftcards, but I decided I wanted to see if I could do better. I had read about a product similar to the Amex Prepaid card called the Amex Prepaid for Target that was more or less a branded version of the Amex Prepaid card we know and love. I went to my local target and found them near the registers.

They normally have a $3 setup fee, but there was a coupon on the front waiving the fee.  I was able to use my Target Giftcards to pay for it, which converted my Target Giftcards into Amex for Target giftcards, usuable anywhere Amex is accepted.  The kicker is the cards also offer ATM access with one free withdrawal per month (and $3 for each additional).  I bought 2 of these cards, entered my personal information at the cashier, and then received the permanent card in the mail in about two weeks which allowed ATM access.  I then took one of these cards back to Target and reloaded an additional $500 on it with a $3 load fee. I was then able to take 3 withdrawals of $400 from the cards, and will use the balance at the grocery store. My costs will be a $3 ATM surcharge since most banks charge an ATM fee, but that is really about it.  So the overall Target deal from beginning to end breaks down like this.

  • Bought $1600 in gift cards for $1440
  • Upgraded $1500 of those gift cards to Amex for Target cards
  • Cashed out $1200 at ATMS
  • $288 left on Amex for Target Prepaid
  • $100 left on Target Giftcards

A grand total of $1588 in value for only $1440.   Yeah it isn’t the thing that is going to let you retire, but if you are trying to meet a stiff $10K spending requirement like I am, then any amount you can spend without actually spending is welcome! And don’t forget the 1440 Membership Rewards Points I will get for the spending. Comparing this to the $1472 I would have gotten by outright selling the gift cards, I think it was worth the extra trouble for an additional $116.