Question from Leda
JetBlue is offering 10,000 TrueBlue miles upon first purchase for people
who open an instant credit card account.
Now, the miles are nice for just making a first purchase and would
even come in handy for a trip to San Francisco I was considering in the
fall. But I'm really not sure what the benefits would be in the long run
if I open a JetBlue credit card account. I'm also quite wary/weary of
the idea of it being an American Express JetBlue card.
Is it wise to open this account, or bad credit waiting to happen?
Answer
First, for perspective, most airline credit cards offer hefty
incentives for new account holders. Sign-up promotions featuring enough
miles for a free ticket are pretty much the rule. And even better
deals appear with some regularity. British
Airways, for example, recently promoted its Executive Club Visa
card with a stunning 100,000 bonus miles for new cardholders who charged
$2,000 during the first three months.
The JetBlue 10,000-point bonus might be
enough for a free ticket, as the airline's website suggests, but
probably not.
TrueBlue award ticket prices are based on the market price of the
airline's paid tickets. Take your trip to San Francisco as an example.
Assuming you were flying to San Francisco from New York, departing on
Friday, July 9, and returning on Monday, July 12, the lowest price I
found was 28,400 points for the outbound flight, and 17,200 points for
the return (on a red-eye). That's a total of 46,500 points for the
round-trip. The 10,000 points earned for using the credit card would be
only a small step in that direction.
On the positive side, TrueBlue awards do not have blackout dates or
capacity controls. And the card's $40 annual fee is lower than many
other cards'.
In short, the JetBlue offer, while attractive, is no more attractive
than offers for cards linked to many other airline programs. And it may
even be less so.
So much for the offer itself. It's also worth looking at the
TrueBlue program, because ultimately the value of a travel rewards card
depends on the value of the program it's affiliated with.
While JetBlue is a fine airline, TrueBlue is a weak program, with
limited opportunities to earn points (JetBlue flights, charges to the
JetBlue credit card, Hertz rentals, Hilton stays) and redeem them
(JetBlue flights).
With the program's redesign
and relaunch last year, TrueBlue is now a revenue-based scheme,
awarding points according to how much members spend, and pricing award
tickets according to market demand and price. In practice, that makes
for a program that works well for business travelers, who travel
frequently and on higher-priced tickets. For infrequent travelers, good
value is harder to come by. That should factor into your thinking if
you're contemplating a long-term relationship with the JetBlue card and
TrueBlue program.
And finally, if you're thinking of signing up just for the bonus, and
doing the same for other credit card bonuses, remember that having too
many active credit card accounts may negatively affect your credit
score, which in turn can increase the rates you pay for car loans,
credit cards, and mortgages, or make obtaining loans or credit more
difficult.
While 10,000 bonus points—which JetBlue touts as "enough for a
round-trip Award Flight"—may make for eye-catching ad copy, there's more
to credit card bonuses than just credit card bonuses.
This article originally appeared on SmarterTravel.com.