Ask Randy

Randy Petersen answers reader questions about how to maximize travel-related loyalty programs.

Dear Randy,
I am getting ready to make a major purchase (approx. $15K) and would like to use a credit card to take advantage of rewards credit. Do you know a credit card reward program that would give me the most “bang for my buck” in this situation? I currently use a Hilton HHonors American Express for my purchases.

If you are purchasing something from a home improvement store, such as The Home Depot or Lowe’s, there’s really every reason to use an American Express credit card from Delta SkyMiles, because you earn double miles for these types of purchases.
But let’s say your purchase is more utilitarian; which card then? It depends on your additional purchasing power. Almost all the cards will give you a signup bonus (much like the Hilton American Express card you have) and it doesn’t matter if your first purchase is $15K or $1.50. Fifteen thousand will get you a free weekend night with most hotel programs, if you are looking for that type of reward for a single purchase.

But if miles are your game, you might consider getting the Starwood American Express card, which is free for your first year, and take advantage of the $15K purchase. Then, with their various signup bonuses, you’ll be at the magic 20,000-point level (one point per dollar spent) from which you can convert your 20,000 points spent into 25,000 frequent flyer miles—a free ticket with most programs, with just that single $15K purchase. This will work with Frontier Airlines EarlyReturns program as well, since its domestic award is only 15,000 miles.

Ask Randy.

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RANDY PETERSEN is publisher of Inside Flyer magazine and is president of Frequent Flyer Services. Email Randy at editor@executivetravelmag.com.