Only frequent fliers need apply
Like many airline cards, the LANPASS Visa Signature card only awards bonus miles on select airline purchases. So if you don’t travel to South America frequently, you’ll have a hard time earning many points. Cardholders earn just two points for every dollar spent on purchases from LAN Air or affiliate-airline TAM, and one point for every dollar spent on purchases from other merchants.
Modest bonuses
LAN has tried to sweeten its rewards program by giving cardholders a 20,000-mile sign-up bonus – worth about $200 – after the card’s first use, and an additional 4,000-mile bonus every year. The annual bonus is only worth about $40, but it effectively cuts the card’s annual fee down to $35 if you use it for a flight.
If you’re a heavy enough spender, you may also be awarded another 25 percent bonus on earnings, but you have to spend a minimum of $15,000 a year to get it. The 25 percent bonus won’t get you very far if you don’t spend relatively heavily on the airline card. We estimate that a typical cardholder who spends just $1,325 a month, for example, will only take home about $222 a year.
On the plus side, the airline does give you three coupons a year to upgrade your seat, which can save you a significant amount of money if you prefer to fly business class rather than economy.
A noteworthy discount
The most appealing benefit offered by the LANPASS Visa Signature card is its hefty discount on one LAN purchase per year. The price of the purchase is capped at $1,000, but it can still add up to some significant savings if you buy a pricey ticket. For example, if you spend $1,200 on a flight to Buenos Aires, you can save up to $200 on your flight. If you combine that promotion with the card’s 20,000-mile sign-up bonus, you’re looking at up to $400 in savings in your first year – not a bad haul for a card that only costs $75 a year.
Valuable membership
The airline’s membership in the oneworld Alliance is also an appealing benefit – especially for cardholders who travel frequently around the world. LAN frequent fliers can transfer miles to any one the alliance’s 14 partners, including American Airlines. The 12 other members of the alliance include Air Berlin, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LAN-affiliated TAM Airlines, Malaysia Airlines, Qantas, Qatar Airways, Royal Jordanian, S7 Airlines and SriLankan Airlines.
Significant restrictions
You may have a hard time, though, finding a rewards-funded flight that fits your travel plans. Blackout dates may apply on trips to your desired destination. The airline also holds just a limited number of rewards-funded seats. In addition, LAN charges a fee for booking flights by phone, so you’ll have to be careful about how you book flights. It also restricts rewards travel to round-trip flights, so you’ll have to wait until you have miles saved up before you can purchase a free flight.
Reasons to get it:
- You travel frequently to South America and prefer LAN Air.
- You’re a relatively heavy spender and so can maximize the card’s discounts and bonuses.
- Your travel plans are often flexible, and so restrictions on when you can fly don’t apply.
How to use it:
- Use your card for all LAN and TAM purchases in order to get the double miles bonus.
- Spend at least $1,250 a month on your card in order to qualify for the 25 percent miles bonus.
- If you’re planning a trip outside Latin America, consider transferring miles to other airlines in the oneworld Alliance.
- To avoid a foreign-transaction fee, leave this card in your wallet once you cross the U.S. border.
The post LANPASS Visa Signature Card Review appeared first on Reviews.