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Update: My links for the 50,000 point Southwest offer are no longer working. You may be able to find working links at Chase.com.
Even though I don’t have any (human) children myself, my siblings’ families are all growing as they have more kids and I’m actually in charge of planning a big family trip in 2014. The logistics of traveling with so many children and trying to book award travel for everyone has really started to open up my eyes to family award travel planning.
I’m frequently asked, especially by my own siblings, which credit cards and award programs are the best for family travel, so it’s been on my mind a lot lately and I’ve come up with the top 3 credit cards that every family should consider getting and why. This is by no means the “ultimate and final” list of credit cards for families- different products will make more sense based on your spend and redemption goals. However, I selected these three based on flexibility, versatility and value- things that many families need in their miles and points to make trips a reality.
Chase Sapphire Preferred Sign-up Bonus Value= $800
While the Southwest cards are very good products, one of the key points I make whether you’re an individual or a family, and whether you’re traveling in domestic economy to international first class and everything in between, is that flexibility when it comes to using your points is paramount. So building points in a transferrable points program such as Chase Ultimate Rewards is key to any successful points strategy.When leveraging transfer partners like Hyatt and United, I usually gets 2 cents per point in value so 40,000 Ultimate Rewards points at 2 cents a piece will bring me $800 in value.
Transfer Partners: To do so, the Chase Sapphire Preferred is winner in my book because it allows you to transfer Ultimate Rewards points to 10 different transfer partner options: British Airways, Korean Air, Southwest, United, Virgin Atlantic, Hyatt, Marriott, Priority Club, Ritz-Carlton and Amtrak. Whether you need air, hotel or train, you can use those points potentially at huge value.
Sign-Up Bonus and Other Benefits: The Sapphire Preferred currently comes with a sign-up bonus of 40,000 points when you spend $3,000 in 3 months, but it’s also got a lot of other great benefits including no annual fee the first year ($95 thereafter), no foreign transaction fees, and a slew of Visa Signature benefits.
Pay With Points: Although I get the most value from my Ultimate Rewards points by transferring them to travel partners and booking classic award tickets and nights, cardholders also have the option just to redeem points directly for travel through the pay with points feature at a rate of 1.25 cents apiece. That’s better than the 1 cent per point any of the personal American Express Membership Rewards cards will get you, and gives travelers the flexibility to book the travel they want when they need it using their points at a decent fixed rate.
Earning and Category Bonuses: One of the best features of the Sapphire Preferred is that cardholders earn 2.14 points per dollar (including the 7% annual points dividend) on several bonus categories including travel and dining – and the travel category doesn’t just include the usual suspects like airfare and hotels, but also public transport, parking, tolls and taxis among other vendors, meaning you can rack up bonus points on everyday purchases without even having to think about it.
Southwest Rapid Rewards Premier Visa:Sign-up Bonus Value= ~400
The Southwest credit cards (and the airline itself) are great for the average family with kids who want to all travel together domestically, who don’t have as much flexibility in their travel timing, and who need to check bags without having elite status
There are a lot of reasons to love Southwest which make it my top option, including the fact that each passenger gets two free checked bags and there are no change or cancellation fees.
Easy Changes: Let’s say your child gets sick and you need to change your tickets at the last minute. Most US airlines will charge you $200 per ticket plus the fare difference to rebook, while Southwest will give you your money back in the form of airline credit and then you just use that to pay the new fare.
Flexibility: The current Southwest Rapid Rewards program is a fixed-value program, which means that you can use Southwest points to book any ticket on any flight since as long as there’s a seat free. You get the best value with Wanna Get Away fares (about 1.8 cents per point), but if you need more flexibility and you have the points, you can pretty much book any open seat at any time using point, just as if you were paying for it, which makes this program a great option for families that need to snag multiple seats on the same flight.
The Companion Pass: If you can wrangle the 110,000 points within a calendar year necessary to earn the Southwest Companion Pass, this can be a huge money and point saver. Essentially, with every Companion Pass, you are getting two tickets for the price of one, whether you are paying for them with money or with point. If you were to get two of the current limited-time 50,000-point sign-up bonuses within the same year, you’re over 90% of the way to getting a Companion Pass.
Drawbacks: Though I’d rate Southwest as mostly positive and a great program for families in general, there are drawbacks such as the fact that the airline doesn’t fly to every city and only has a few international destinations thanks mainly to its ongoing merger with Airtran. The Southwest credit cards might also not be the most lucrative way to earn tons of Southwest points based on spending either. For that you might consider…
Barclaycard Arrival Sign-up Bonus Value= ~$440
The new card that I think all family travelers should pay attention to is the Arrival from Barclaycard.
High Sign-Up Bonus: The card currently comes with a historically high sign-up bonus of 40,000 miles when you spend $1,000 in 3 months and the annual fee of $89 is waived the first year.
Bonus Earning and Good Value Return on Miles: Instead of 1.25 cents per point you get using pay with points with the Sapphire Preferred, or the 1.8 cents per Rapid Rewards point you get on Southwest, the miles you redeem from this card get you the equivalent of 2.2% back on all of your spend when you redeem them for travel. That’s because you earn 2X miles per $1 on all purchases, and then you redeem those miles for 1 cent apiece towards travel and you get a 10% mileage refund on redemptions. Plus, you don’t even have to book the travel through a specific airline or credit card travel site to redeem the miles, you simply purchase the travel you want – whether it’s a car rental in Argentina or a train ticket in Italy – then redeem miles for a statement credit.
Use On All Kinds Of Travel: What makes the miles you earn with this card really valuable is the fact that you can use them for travel expenses that you can’t ordinarily use other miles or points for such as staying B&B’s, cruises and even just booking through a travel agent. You can even use this card to pay for fuel surcharges and taxes on other award tickets and then redeem miles for those expenses, so your total out-of-pocket spend is minimized and you can put those dollars towards their college fund instead.
Never a Zero Miles Balance: As I mentioned above, one of the key benefits of this card is that you get a 10% refund on miles you redeem for travel, so your mileage balance will never be zero. For example, if you redeem 100,000 miles for $1,000 worth of travel, you’ll get 10,000 miles, or $100 worth of future travel redemptions, back. That means you can keep growing your balance even while you put your miles to use.
Want to learn more about family travel? See these posts also: