In today’s credit market, credit card companies are working overtime to try and recruit new users. Sign-up bonuses today typically exceed $100 in statement credit or large chunks of airline miles. It used to be 10,000-15,000 miles was the norm, then it was increased to 25,000 miles. Now it appears credit card companies are handing out 50,000 miles or more with occasional offers for 75,000 or even 100,000 miles. Every card is different though in how the points are earned, so be sure to read the terms. Sometimes part of the sign-up bonus is given based on balance transfers, which are accompanied by fees. You have the weigh the cost of the balance transfer versus the return on the miles. Remember too that travel related credit card programs typically incur an annual fee, although it’s sometimes waived through the first year. With all these miles being handed out, how long will all those miles be relevant for redemption towards airline seats?

In other words, it’s typical that a round-trip flight would cost 25,000 within the continental U.S. on the larger airlines. Some would debate the real value of those miles as it’s typically more valuable to use them for premium seats on International travel, but for the sake of discussion, we’ll use the domestic example. So my real concern is that if the airlines/credit card companies are willing to recruit new customers by shelling out all these miles, how much longer will it be until they start increasing the redemption levels? Maybe I’m worried about nothing right now though because of our near term future.

Unfortunately, for the past year I haven’t been able to take advantage of all these incredible offers. We are looking to sell our home this year and purchase a larger home elsewhere, so we’re doing everything possible to maintain our high credit scores. In addition, now that the family is larger after the birth of our second son, redemption of miles is not in our immediate future.