READ THIS BEFORE APPLYING!
Written: Feb 26 '02
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Pros: Lots and lots of miles! Easy redemption
Cons: High annual Fee, high interest rate
The Bottom Line: Solid card with standard benefits. For those that travel, this is the easiest way other than getting on an airplane to earn miles.
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| jagc's Full Review: United Airlines Mileage Plus Visa(First USA) |
After reading many reviews about travel credit cards, I have found that most of the people complaining about these cards really have no use for them to begin with and probably should not have applied for one. Then they complain about it. One guy actually said that he has 82,000 miles on his account, but doesn't foresee a chance to use them, therefore the card isn't worth it. WHAT?! Give them to me I'll use them. What a ridiculous complaint. That would be like complaining about your car because you can't drive it.
These travel cards are only a good deal if all of the following applies:
1. you travel the particular airline
2. you do not carry a balance on your account
3. You spend a somewhat significant amount of money (at least $800/month)
3. You actually will use the miles
If one of these three criterion do not apply, then do not get an airline mileage card.
I actually have two of these credit cards. The AAdvantage card from Citibank (for American Airlines) and the United Mileage Plus Signature Visa from FirstUSA. I fly these airline for business at a minimum of 10 segments a year, usually more.
Benefits (currently)
5,000 miles for initial sign up
discount travel certificate
1 class upgrade certificate
Annual Fee=$60
Interest rate=currently 14.65%
Let's look into the reasons why one should actually get a mileage credit card. If you are one who never travels, does not take advantage of other mileage earning opportunities and spend $150/month on a credit card, then this card is definitely not for you. Most people do not understand how easy it is to earn miles in your daily life. I pay almost all my utility bills by credit card: long distance, cell phone, electric, cable. That gives me about $250-300 in charges on things that most people write checks for. That's an extra 250-300 miles a month or 3600 miles a year and we haven't even gotten to the regular purchases.
So let's say I spend $1000/month on it, that's 12,000 miles a year, so after two years I am already at a 25k roundtrip continental US ticket. That is if I NEVER fly United. Let's say you have a major purchase, put it on the card and get the miles. I bought a "new" car last year and put the down payment on my credit card, (I had the cash, but why write a check?) miles to my account =8,000.) You have to start thinking like this in order to make this card worthwhile. I bought an engagement ring last year on it. Again many many miles to my account. Some advice: if you do make a big purchase, make sure you have the money to pay for it otherwise you will be subject to those hefty interest charges and defeat the purpose of earning miles.
Another little known fact about the First USA mileage plus card is that if you refer someone to obtain one of these cards you will get 5,000 miles for doing so. IT is called the friend refer a friend program and whoever you refer MUST tell them that they are applying under these pretenses. They must give the company your account and Mileage plus frequent flyer number. Me=10,000 miles for that.
Since I applied for the card in Jan 2000, I have flown United for free a total of 3 times and upgraded to first class once. That's 3 free tickets in 2 years. During that time I paid to fly united three times. That's it, three times. I used a total of 85,000 miles in those two years for the flight and upgrades. I didn't spend anywhere close to that. The card supplements my mileage balance. Are you getting the picture yet?
There are so many opportunities to earn miles, all you need to do is spend a little time on the United website. Rental cars, hotels, long distance service can all earn you miles to help supplement your account. Those are extra miles you get for things that you normally would have done.
The website for this card is excellent. It is easy to pay your bill, look at your charges and keep an accurate tab on your expenses.
Others have complained about rental car insurance. First of all you have to have the correct level of card to be eligible for the rental car insurance supplement. If you have the regular standard visa, you will not get it. If you have the platinum or new signature visa, you will be eligible for rental car insurance. Most people don't know this: this is supplemental insurance, not primary insurance. It covers you beyond what your insurance company will cover in case of an accident. It is NOT your primary source of insurance in an accident. You should always check with your auto insurance provider to make sure you are FULLY covered with them first when you drive a rental. If you don't have full comprehensive coverage, many times you will not be covered. READ THE FINE PRINT ON YOUR CREDIT CARD CONTRACT!
Another bonus with this card is that occasionally United will offer a mileage bonus if you book a trip online at United's website and use the Mileage Plus credit card to pay for it. It is another little helpful bonus that helps you build a significant amount of miles very quickly.
I generally have no reason to call customer service, so I cannot rate their service level. I heard they are not great, but I have no first hand knowledge.
Another poorly thought out complaint is that the miles are actually not worth anything. Some say that you can fly across country for $250. I am not sure that's possible on the majors anymore, but why would you waste the miles on that ticket? They don't expire as long as you earn 1 mile every three years. Why would you waste it on that? Why not collect enough to go to Hawaii or the Carribean and save yourself and spouse, friend, etc. $1,000+? It just blows my mind when people complain about that. Maybe you have a short fuse trip you need to take and that fare is $1000. These are the times you use the miles. One review complained that a ticket from San Jose to LAX was $160 and it cost 25,000 miles to book a free flight. WHY IN THE WORLD WOULD YOU WANT TO USE MILES FOR THIS?
In sum, this is a good card to have. If you fly United, take advantage of the supplemental mileage offers you will earn mileage quickly. If you don't fly, carry a balance or aren't going to use the card, don't get it. Simple as that. Don't complain about the card because it doesn't suit your particular needs.
Recommended:
Yes
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Epinions.com ID:
jagc
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Location: Northern California
Reviews written: 10
Trusted by: 4 members
About Me:
Practicing Attorney.
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