Here's another Way to Save with Credit Cards

My wife received a really good credit card offer from American Express today. The Blue Sky is cash back rewards card where you accumulate one bonus point for each dollar you spend.

After you spend your first $500, American Express gives you 7,500 bonus points. This is equivalent to $100 off any airline ticket, hotel stay, and car rental or travel package. You must redeem the bonus points in blocks of 7,500.

Unlike Discover, you’re limited to the travel industry. But American Express pays you 1.3% ($100/$7,500) instead of 1% for Discover purchases.

Blue Sky has no annual fees; the APR for the first 6 months is 0%! Zero-percent loans are nice to have even if it’s only for 6 months. Just set aside what you spend and pay it off before they jack up the rate.

After six months, the rate goes up — at least in my wife’s case — to 12.24%. Your rate maybe higher or lower depending on your credit score. Since I pay off all my balances, I never get charged interest. But still, it’s nice to know that it’s a fairly reasonable rate as far as credit cards go.

Another thing I like about this card is that you’re not tied to any specific airline. I use my United Card to keep my miles alive, but I can’t even remember flying United. We mostly fly Delta or Alaska, so it’s a waste to carry the card and use it to save money. I would like to get Blue Sky, but I already have two American Express Cards, one for personal and one for business expenses.

Since my wife doesn’t have an American Express Card, this is the one she should apply for in her name to help her maintain her credit history. Plus, we can use the $100 American Express hands out to help offset the cost of our vacation next year!