L.A. Times Travel Show: Credit cards for air miles? Be strategic

For the millions of millennials stuck living with their parents or struggling with finances on their own, credit cards promising thousands of frequent flier miles on sign-up seem wonderful to pay for a getaway. But beware, experts said at the “More for Your Money” panel at the L.A. Times Travel Show on Saturday.

Jen Leo, Web Buzz columnist for the Times, led the conversation with Eric Rosen, editor of The Points Guy blog, and Johnny Jet (John DeScala) world traveler and regular guest on “The Tech Guy Show.” The panel returns at noon Sunday.

Rosen advised travelers that “the credit card game” is a long-term strategy. “The more attention you pay to building credit, the better deals you will get down the road,” Rosen said. “You want to get to the point you can get any card you want.”

Travel deals blogger DiScala said that in the short term, young consumers should only spend what they know they can pay off. The interest rates on miles-rewards credit cards are often much higher than on regular or cash-rewards cards.

Rosen also noted that although sign-up bonuses might be lucrative, people shouldn’t sign up for a new card every year. Instead, cardholders should contact their existing credit card company to ask for a new deal, such as waiving an impending annual fee.

Or they should ask whether their line of credit can be switched to a less-fancy credit card tier, such as downgrading from the highly rated Chase Sapphire Preferred to Chase Sapphire after the first year.

“It’s a way of avoiding costs not waived in the second year without damaging your credit score by closing a line of credit,” Rosen said.

Credit card miles was just one of many topics the pair covered during a discussion at the Travel Show.

They also spoke about the importance of following airlines on Twitter to keep abreast of short-term sales, using the HotelTonight app for last-minute room deals, and trying the Roomer website to book bargain accommodations. Rosen also recommended that travelers e-mail hotels before booking to see if they will match or even beat a price found elsewhere.

DiScala returns alongside The Points Guy founder Brian Kelly at noon Sunday on the Los Angeles Times Travel Smart Stage. The Travel Show runs 10 a.m. to 5 p.m. Sunday.
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