Travel Insurance From Your Credit Card

By: Jason Steele

01/14/2011

A reader asks:

If I signed up for a United Mileage Plus Visa credit card would I be able to get travel insurance from that card and is this different from United’s Access America travel insurance one can get online when purchasing a flight reservation from United?

The answer is no. The United Mileage Plus Visa from Chase provides a variety of benefits under the Visa Signature program, but none of them are comparable to the insurance product that Access America sells. The Visa benefits include travel accident insurance, lost luggage compensation, auto rental collision damage waiver, and various travel, emergency and roadside assistance referrals, not insurance. You can read a complete guide to the Visa Signature benefits here.

The Access America plans sold by United have some overlap with the Visa Signature benefits. For example, they cover lost and delayed baggage as well as some rental car protections. In addition, they provide trip cancellation, trip interruption, emergency medical and dental coverage as well as medical transport coverage.

The most important thing you can do is to study the details of both the Visa Signature benefits and the Access America plan you may be considering. In each case, there are numerous limitations to each benefit. Too often, travelers merely assume they are covered based merely on the description of the benefit, not the actual details of the policy itself. Like so many things in life, the truth lies hidden in the details, and travelers discover that they were not covered only after they have incurred expenses.

For example, many of the Visa Signature benefits only apply when the full cost of the travel has been paid for with your card. Using a frequent flier award ticket, or a rental car award will invalidate the coverage, even if you put all sorts of taxes and fees on your Visa.

Regardless of if you are relying on the Visa benefits, or if you have purchased additional insurance, you should always contact the provider before outlaying money for what you believe are covered expenses. Obtaining advanced approval from your insurer is the key to ensuring that they will reimburse you after the fact.

Good luck in your travels.

Cranky Flier Radio Interview With Brett Snyder

By: Mr Credit Card

01/13/2011

Earlier in the evening, Jason and myself had the pleasure of talking to Brett Snyder of Cranky Flier. We talked about lots of stuff including

His prior experience in the airline industry

How airlines look at seat pricing

His explanation of the Third Party Reservation System

His thoughts on SouthWest Airlines’ changes to their Rapid Reward programs

His views on the 3 hour tarmac rule

This is a long interview (90 minutes) and would have gone longer if not for the time. So grab and cup of coffee or tea and enjoy the show.

Listen to internet radio with Ask Mr Credit Card on Blog Talk Radio

What To Do When Your Rental Car Does Not Look So Good In The Morning

By: Jason Steele

We have all heard the story of someone who wakes up next to someone else after a long, inebriated, night. Only then do they realize that their partner was not as attractive in the sober light of day as they seemed the night before. I had a similar experience recently, with a rental car.

I arrived at my destination late at night and was, of course, anxious to leave the airport, get to my hotel, and get a good night’s sleep. Nevertheless, I performed a thorough walk around of the vehicle, at night in a dim parking garage, noting several scratches and marks.

The next morning, I found the car undisturbed in the parking lot of my hotel. Under the bright sunshine, I realized that there were several more scratches than I had noted. The roof even had scratches that peeled back the paint, exposing rust. Inside, I saw stains from spilled beverages on the dark colored door panel. In between the seats, I saw trash from the previous renter.

What To Do

I first called the office of the rental car company where I had rented the car. They didn’t answer the phone, but I left a message. I then contacted the main number of the company. They transferred me to the roadside assistance line. The representative on the assistance line asked me if I have been injured and if I was in a safe place. I had to explain to them that I was NOT in an accident, I merely wished to have them document the PRE-EXISTING damage that was not apparent to me when I picked up the car. I walked around the car, and had them note everything I could see. The fact that some of the scratches were rusted lent credibility to my assertion that the damage was pre-existing.

Nevertheless, when I returned the car, I made sure to photograph the car from different angles with my digital camera. I also took extra care to retain both my original documentation of the pre-existing damage, as well as the receipt I received upon return. I have read way too many stories about rental car companies going after people, often weeks later, for pre-existing damage. Somehow, I always imagine that the perpetrators of this scam think twice before claiming damage when they see me take pictures of the car.

While not as gross as waking up next to a stranger, realizing that there is pre-existing, un-documented damage to a rental car can be unnerving. Fortunately, there are steps you can take to make sure you are not victimized by your rental car company.

Why College Students are Horrible With Credit Cards?

By: Mr Credit Card

This is a guest post from MD of Studenomics. A blog where you can find the best credit cards for college students or learn about college life in general. MD just graduated (without debt I must say). So he is probably one of the rare exceptions in today’s world. But I guess he has been keenly observing his fellow peers racked up debt in college. Let’s see what he has to say.

Before we get into the post we should address the question: are college students horrible with credit cards? I would have to say that the answer is unfortunately yes. According to Generation Earn, every one in three college students carries a credit card. The average amount owed is $495. On top of this empirical data it’s not a secret that handing over a plastic card with money on it to an 18 year old is not a good idea. Even with the new Credit Card Act in place, a student under 21 just needs a proof of income or a co-signor. Both are not difficult to provide. Now before I get off topic let’s look at why college students are horrible with credit cards:

Lack of information.
Where can college students turn to learn more about credit cards? How many students really go online to become more financially literate? The reality is that the average college student applying for their first credit card simply doesn’t have the information needed in front of them to be a conscious credit card user. This lack of information could hurt them in the future.

Not caring enough.
In between trying to cram for midterms and figuring out which kegger to attend, your credit card bill might be just the last thing on your mind. I don’t want to blame college students nor do I want to blame credit card companies. I just feel that there’s a disconnect somewhere.

Instant gratification.
Our generation has not been raised to be patient. When we want something we want it right now. We’re all guilty of this. I’ve regretted many purchases simply because I didn’t delay them a little bit or conduct more research. Delayed gratification is rare in the credit card era. We either justify our purchases or we simply don’t worry about how we’ll pay for that new pair of Nike Shox. As the credit card bill rolls around, the harsh reality starts to hit that this purchase is going to have to be paid for eventually.

I don’t want to harp on the negative so I’ll stop there. Now that we know why college students can be horrible with credit cards, let’s look
at a few solutions for the parents reading this:

Keep the limit minimal.
If your college-aged kid has not proved to be financially responsible then you should ensure that their credit limit doesn’t exceed the standard $500 amount. A friend in college some how managed to convince his parents to extend his credit card limit to a few thousand dollars. Let’s just say that it wasn’t a good idea by any means. I think that $500 is a good starting point for all new credit card users until they get the hang of it.

Have a joint-credit card.
My Mom has a joint-credit card account with my 20-year old brother. A join account will force this person to always think about you before they purchase something. Do you really want your parents seeing how many times you booze in a week or how often you go shopping?

Simple education.
This one scary calculation on eliminating credit card debt can be discouraging enough. When the professor ran this calculation I could see people with Ed Hardy shirts and Gucci shades on dropping their jaws. It’s scary to think about how much money our crap is going to cost us in the long run. This is often the education that a college student needs, not some boring lecture.

There you have it. We now understand why college students are traditionally horrible with credit cards and what you can do about this. Feel free to fill in any points that I missed.

Fly from Dallas To California – Which Airline Credit Card To get?

By: Jason Steele

01/12/2011

A reader asks:

I am trying to decide which card to get for me and my wife. we only fly to California once or twice a year, but it would be nice to have those tickets paid for.

We always fly out of DFW or DAL and we use the cheapest airline possible. The price always varies greatly but we tend to fly during spring break or holidays because we are both students. We typically pay anywhere from $350-600 per person, and we generally check two bags per person. I an average month, we would spend anywhere from $1500-4000.

I know there are a lot of different airline credit cards and that each one has its perks. With this in mind, which cards would you recommend with the best per annual fee, points earned, miles earned per miles flown, and per point, dollar value?

Great Question. You don’t have to be a globe trotting jet setter to get real value out of a frequent flier program and an affiliated credit card. Flying to California from the Dallas area with two people twice a year is costing you around $2,000, and that is real money, especially for a student.

First, you might want to consider if you are willing to fly to California with a stop, or if time is such an issue, you are only willing to consider non-stop flights. Due to a peculiar piece of legislation called the Wright Amendment, you cannot fly non-stop on Southwest Airlines from Dallas (Love Field) to California, at least not until it is scheduled for repeal in 2014. So if you are devoted to a non-stop flight, you will find plenty of options on American Airlines, and a few flights to LAX and SFO on United.

Of the two, American is, by far your better bet than United. Since you are only spending a modest amount each year, your sign up bonus will be key to your value. Currently, there are offers out there for American Airlines credit cards from Citi with sign up bonuses of up to 75,000. Just one of those cards will earn you enough miles for three round trip flights, albeit with restricted availability. For 50,000 miles, you could get an unrestricted award on American. Like most airline credit cards, you will earn 1 mile per dollar spent, and you are eligible for a standard, domestic award for 25,000. In my experience, American has better award availability than other major airlines like Delta, United, Continental and US Airways.

The cards have an annual fee of $85, but it is waived the first year. Many people just cancel after a year if their bank won’t waive the annual fee.

If you are willing to consider a flight with stop, Southwest Airlines offers services to all major California airports from Dallas Love field (DAL). Many of these popular flights out of Love field have just a brief stop to comply with law, and no change of plane, so they add a very minimal time your trip and no risk of a mis-connection. Southwest may be particularly well suited to your needs as they let you check two bags each for no cost.

Southwest currently has an unbeatable offer for a free round trip plus up to $500 in Southwest Gift cards. I am currently enrolled in this program where I have to spend $5,000 in the first three months. That is an unbeatable value as sign-up offers go. Furthermore, under the new Rapid Rewards program that goes into effect on March 1st, you will essentially earn 1.67 cents, as a credit to a flight on Southwest, per dollar spent on their Chase credit card. The Chase card has a $59 annual fee, but again, it is waived after the first year.

If it wasn’t for the great sign up bonuses, you would be best off getting a Capitol One Venture card. It offers a relatively meager sign up bonus, 10,000 miles once you spend $1,000 in the first 3 months, worth $100. It does give you 2 cents per dollar spent as a credit towards any travel expense. You can pick the best fares on the best airlines, and even earn frequent flier credit when you fly. The Venture card has a $59 annual fee that is waived the first year.

Your best bet seems to be to get as large a sign up bonus as possible, either from Southwest, American, or both. Your spending will help you get further, but it is the initial bonus that will earn you almost $1,000 in free travel.

Good Luck!

Having Fun In Ft. Lauderdale

By: Jason Steele

I just returned from a particularly well timed trip to Ft. Lauderdale Florida. While most of the country was snowbound, Florida remained the only snow-free state in the country (there are some snow capped peaks in Hawaii). Just as my neighbors in Denver were experiencing below zero temperatures, and my family in Atlanta was snowed in, we were enjoying 80 degree days at the beach.

The primary purpose of the trip was to visit family, but we took the opportunity to see some of the sights the area has to offer. Others fly in and out of Ft. Lauderdale on their way to take a cruise, but never stick around to see the area.

Here are my recommendations for your next visit to South Florida:

1. The Ft. Lauderdale area has great food. We were able to find authentic cuisine from two of our family’s favorite places, Brazil and Israel. At 843 W Sample Rd in nearby Pompano Beach is a fantastic Brazilian grill and buffet called Restaurante Brazil. Unlike the expensive, all you can eat style places, this one sells food the way most restaurants in Brazil do, by the pound. At a mere $5.99 a pound, their sirloin is cheaper off the grill than it is in the supermarket! Don’t forget to visit the Brazilian bakery next door for desert.

We also found Sunrise Pita at 2680 N University Dr in Sunrise. This was the best Israeli and middle eastern food I have ever had this side of Tel Aviv. Chicken Kabobs were amazingly tender and I could watch the turkey schwarma spin on the rotisserie all day. Ultimately, it was the salads they add that made this place a real find. Aside from those two specialties, look for great seafood, Asian food, and New York style delis.

2. Take the Duck Tour We had a lot of fun on the amphibious bus tour of Ft. Lauderdale. Unbeknown to us, Ft. Lauderdale is said to be the Venice of the United States, with series of canals connecting miles of intercoastal waterfront. There are also regularly running water taxis as well as dinner and lunch cruises.

3. Go To Miami Your family in Ft. Lauderdale might consider Miami to be a million miles away and only willing to venture there under armed escorted. Don’t be dissuaded. Miami has a lot to offer tourists. We have had fun watching dolphins and killer whales at the Miami Seaquarium, and touring the magnificent Vizcaya estate and gardens. Other great sites down there include the Miami Duck tour, the Jungle Island park, and the amazing Coral Castle.

4. See Some Gardens There are several botanic gardens in both Ft. Lauderdale and in Miami. One spot we have to visit next is the Butterfly World gardens in Ft. Lauderdale.

5. Visit The Everglades The Everglades are a unique environment just to the west of Ft. Lauderdale. Take a ride on a swamp boat or even a swamp buggy. You are guaranteed to see all sorts of alligators, crocodiles and other native wildlife.

So whether you are catching a boat, or just visiting your grandmother, keep in mind that there is plenty of worthwhile things to do and to eat in the area.

Signs It Is Time To Move On To Another Reward Card

By: Jason Steele

01/10/2011

If you are not single, remember when you were? Unless you are still in your first relationship, you have inevitably discovered what it feels like to know that it is time to move on. The same is true with your reward credit card. Like relationships, some people don’t see the signs and end up trapped in an unfulfilled situation for way too long.

Here are some signs that it might be time to move on, with your credit card.

1. The value equation just isn’t working for you. When you signed up, you were offered wonderful rewards, such as a free domestic ticket for a mere 25,000. When it came time to redeem the award, there was no availability for months at that mileage level. Given the mileage you needed to get to your destination, and the cost of ing a plane ticket, you realize you would have been better off had you stuck with a cash back card.

2. You just found out about the Foreign Transaction Fees (FTF) scam. You love to travel internationally, and you love your rewards, but you just found out that your credit card company is skimming 3% every time you use your card in Canada or some other exotic location. Worse, you just read that several credit cards just decided to drop their FTF, joining long time FTF free cards from Capital One. It is time to get a no FTF card for your travels.

3. You just got socked with an annual fee on a card you rarely use. It is not too late to call them up and cancel the card, and your annual fee. Besides, there is a good chance their retentions department will agree to waive the fee, or possibly make you a reasonable offer of more loyalty points.

4. Their customer service is driving you crazy Bank’s customer service may not be quite as bad as the airlines, but they can leave something to be desired. If you are forced to spend time dealing with their screw ups, or waiting on hold forever, it might be time to move on.

5. You are getting bombarded with offers for great cards with amazing sign up bonuses. With the exception of big spenders, it is very easy to get more rewards from sign up bonuses than you get from spending. When you find a great offer out there, it is great to snag it and possibly cancel your old card. You can still apply for it again another day, and re-earn a sign up bonus.

6. It’s not you, its me You signed up for a particular card for various rewards, but these days those rewards really don’t excite you. Maybe you just need to find the right reward card for your particular needs, travel habits, or both.

The most important thing to remember is that we are blessed with a very competitive market for reward cards. There is no reason to stick with a card that just isn’t doing it for you.

Sometimes, it is up to you to realize that you can do better.

First Class Upgrade Without Asking

By: Mr Credit Card

01/09/2011

I’ve sat in first class (on international flights – not the domestic ones that very often resemble premium economy seats!) a total of three times. The first was an international travel with my boss. He always flies first class. So he booked a first class ticket for me too! On the return trip, I flew business class (he did not fly with me). And boy was I hooked. The second time occurred on another international flight. I was traveling with my boss and another colleague. When we arrived at the check in counter, someone from the airline came up and simply told us we’ve all been upgraded! Guess they overbooked! The third time was a family home leave trip and I was the only one upgraded! I brought my son to sit with me. He was about 2 years old. And just before we landed, he puked all over me!

Today on my flight to Vegas, I had seat 14D (an aisle seat). The middle seat was unoccupied. And there was a lady in military uniform sitting in the window seat. It was great because we had space. Just before we took off, the chief stewardess came up to us and spoke to the lady. She said “you are the lucky girl today cos I’m bumping you up to First Class”! Lucky her and I’m sure she enjoyed the extra space. When I was boarding I noticed a first class seat that was unoccupied. I kept thinking back when I was checking in online and was asked if I wanted to upgrade to first class for $200!

The stewardess then moved another passenger two rows in front of me to take the ladies place as she was sitting with a mom and two kids. It was a good thing for her as her kids were screaming and crying for almost the entire trip (5 hours).

it just goes to show that sometimes you get lucky and a first class seat awaits you.

The Winners and Losers of Southwest's New Rapid Rewards Program

By: Jason Steele

01/07/2011

By now you have heard about Southwest’s new Rapid Rewards program, and have even read how I, in part, predicted this development in a guest post I wrote back in 2008. After careful study, I came to the conclusion that this new program is radically different than the old one, and is a mixed bag depending on how you used the old program.

Here is how I feel the winners and losers shake out:

Winner: People who want to redeem many awards for shorter flights. I live in the middle of the country, so I never have the opportunity to fly transcontinental. I always resented that a little bit, as people on the coasts could redeem a Southwest award for much further than a Denver resident could. In fact, I never really got a lot of value out of my awards, as my redemptions were never really for tickets that cost a lot of money. With the new program, instead of flying across the country by myself, I can redeem my points for a trip for my whole family to visit a nearby place.

Loser: People who earn miles by flying short legs. Yeah, if you were flying back and forth on cheap flights between LA and Vegas every week, only to redeem your award for a last minute trip to Boston, you are being screwed. If you were booking each flight separately to maximize your RR points, that strategy will now be, well, pointless.

Winner: People who last minute travel If you work for a company that is always sending you places with little notice, you now have some good reasons to choose Southwest. Instead of receiving a couple of RR points, you can now get a huge kickback on your last minute business travel as your rewards will be based on Dollars, not flights, and you get more points with the more expensive fare classes.

Loser: People who redeem awards for last minute travel. A long time ago, I was able to redeem a Delta award for a same day flight. Those days are long gone on Delta, but I have a friend who redeemed an Award on Southwest for a flight the same week. He would not be able to do so economically under the new Rapid Rewards program. If he were to attempt that under the new system, he would be bumped up to a much higher fare class and pay much more for his points.

Winner: People who want to redeem awards for Hawaii and international flights. Southwest will allow redemptions on other carriers, although it is not really clear how this system will work, or what it’s value proposition will be. Nevertheless, there are road warriors out there who put in the big miles who have a ton of points, but no desire to redeem them for yet another domestic trip. Those people can now dispose of their points going someplace more exotic than Burbank.

Loser: People who don’t have the Chase Rapid Rewards Card You know those great reward redemptions for Hawaii or international flights? They are only valid for holders of the Chase card. Can’t qualify or don’t want to pay the annual fee? Sorry. Other than Delta’s cash and points option, I don’t know of any other airline reward that requires you be a holder of their affiliated credit card.

Winner: Companion Pass Holders The holy grail of the RR program has always been their vaunted companion pass. If you achieve this status, you can use it in an unlimited fashion to get a free companion ticket anywhere you go. Couples traveling together can save huge. It used to be that the companion pass expired after 12 months if you didn’t re-qualify. That left people on a constant treadmill. Now, the companion pass will be valid until the end of the calendar year that it was to expire. You can also change your companion designation three times during your qualification period. This is great for swinging jet-setters who may have broken up with their designate partner.

Looser: People who redeem on the same route they purchase tickets on. Let’s say you fly from point A to Point B every so often. You used to earn two RR points per round trip, and a free ticket every 8 round trips. Now, you will need to fly 10 round trips at any given fare level to earn one award ticket at the same fare level. I call that a 25% devaluation.

My Thoughts On AwardWallet

By: Jason Steele

01/05/2011

I hate confusion. I am always advising my readers to simplify their finances. I stand by that advice. Unfortunately, to get the most out of the loyalty points game, you have to have all sorts of different accounts in a variety of programs. After all, why would you choose not to accept points that are freely offered?

The result is an endless proliferation of points and miles in various programs. Sooner or later, you are bound to forget about one or to see your points expire. This is where Award Wallet comes in. You enter your information into it’s system and you see all of your points and miles on a single screen. What I like most of all is that you can enter in programs that are in other people’s names. This is extremely helpful when you are managing points for a spouse, partner, or a relative. Let’s face it, grandma really isn’t up on these things and she can use all the help she can get.

One of the downsides is that a few airlines have chosen specifically not to participate. Southwest, perhaps my favorite domestic carrier, is one of them. In a rare, customer unfriendly move, they have prohibited sites like Award Wallet from retrieving information from their program. Recognizing that the fault lies with Southwest, not Award Wallet, this is still a drawback from the standpoint of the user.

Their basic service free, but some features require an upgrade to their Plus plan. Interestingly, they accept suggested donations. When trying to upgrade, you are asked: ” Please choose how much this enhanced service is worth to you?” They will also upgrade you if you invite 5 friends; talk about viral marketing!

My Thoughts

Overall, I like their approach. They have a great product that is easy to use. They offer basic functionality for free. I was able to get set up and running in just a few minutes. If you are a member of more than a few loyalty programs, you really should give them a try.

Now if they can just work on the tangle of wires surrounding my computer below my desk…..