New JetBlue Card Review from Barclaycard

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JetBlue has announced two new consumer credit cards – the JetBlue Card (no annual fee) and the JetBlue Plus card ($99 annual fee). These are both issued by Barclaycard, as JetBlue recently ended its credit card relationship with American Express. Are they worth getting? Here’s my brief review of the card highlights and the value proposition breakdown.

Had the JetBlue Card from American Express? You do not need to apply again. Your AmEx card will automatically be replaced with the new JetBlue Rewards MasterCard, issued by Barclaycard, in late March 2016. The JetBlue Rewards MasterCard is slightly different that either card described below and is only available to grandfathered users. It has a $40 annual fee, but you can also request your card to be converted to one of the cards below.

Highlights of the new JetBlue card:

  • Limited-time offer: Earn 10,000 bonus points after you spend $1,000 on purchases in the first 90 days.
  • Earn 3 points per $1 spent on JetBlue purchases, 2 points per $1 spent at restaurants and grocery stores and 1 point per $1 spent on all other purchases.
  • 50% savings on eligible inflight purchases including cocktails, food and movies.
  • No foreign transaction fees.
  • No blackout dates on JetBlue-operated flights & redeem for any seat, any time on JetBlue flights.
  • Chip-card technology and $0 Fraud Liability protection.
  • 0% introductory APR for first 12 billing cycles on balance transfers made within 45 days of account opening. After that a variable APR will apply, 12.24%, 20.24% or 25.24%, based on your creditworthiness.
  • No annual fee.

Highlights of the new JetBlue Plus card:

  • Earn 30,000 bonus points after you spend $1,000 on purchases in the first 90 days.
  • Earn 6 points for every $1 spent on JetBlue purchases; 2 points for every $1 spent at restaurants and grocery stores; 1 point for every $1 spent on all other purchases.
  • Free first checked bag for you and up to 3 companions on JetBlue operated fights when you use your JetBlue Plus Card.
  • Mosaic benefits after spending $50,000 or more in purchases each year.
  • Get 10% of your points back every time you redeem to use toward your next redemption
  • Earn 5,000 bonus points every year after your account anniversary
  • Annual $100 Statement Credit after you purchase a JetBlue Getaways Vacation Package of $100 or more
  • No blackout dates on JetBlue-operated flights & redeem for any seat, any time on JetBlue flights.
  • Chip-card technology and $0 Fraud Liability protection.
  • $99 annual fee.

What are the TrueBlue points rewards worth? You earn JetBlue TrueBlue points on your purchases, which are best redeemed for JetBlue flights. There are some other options like newspaper or magazine subscriptions, but I won’t cover them here.

  • JetBlue TrueBlue works on a revenue-based system. You can book any flight without blackout dates, but the points required depends on the current cash cost of the flight. This is different than a chart-based system, for example might require 25,000 points for any flight within the 48 contiguous states (subject to blackout dates and availability).
  • A reasonable estimate of value is 1 points = 1.4 cents towards a Blue, Blue Plus, or Blue Flex fare. The exact value may vary, but that is the average that I found and the variance is low. Ex. 10,000 points would cover $140 in airfare. See calculation example below.
  • The value of a free checked bag is $15 to $25 one-way, per person. Depending on fare level, JetBlue now charges for checked bags. If you buy it separately on a base fare, a checked bag will cost $20 one-way upfront or $25 one-way at the ticket counter. If you buy the Blue Plus fare which includes one checked bag, that usually costs $15 more one-way. At $30 to $50 roundtrip, the value of the free checked bag feature can add up quickly if you travel as a family or group.
  • Families can share and pool points together, with no transfer fees.
  • TrueBlue points don’t expire.

Every 10,000 points can be redeemed for $140 in airfare. This means 2X points back on restaurants and groceries can be redeemed for 2.8% back in the form of TrueBlue airfare. The 3X points back on Jetlue-operated flights can be redeemed for 4.2% back in the form of TrueBlue airfare. The 6X points back with the Plus card on Jetlue-operated flights can be redeemed for 8.4% back in the form of TrueBlue airfare.

This is in addition to the existing 3X points for TrueBlue members buying Blue airfare, and the 3X points for anyone booking JetBlue flights online. If you have Mosaic elite status, you also get another 3X points.

Calculating the value of a JetBlue TrueBlue points. You can test for yourself quite easily. Here is a randomly chosen, roundtrip San Francisco (SFO) to New York City (JFK) flight. Screenshots are below. It would have either cost $423.30 in cash, or 29,400 points + $11.20 in taxes. The value of a point comes out almost exactly to 1.4 cents per point:

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Recap. The new JetBlue card from Barclaycard can be a good value for regular customers of JetBlue and their free DirecTV. You get extra savings when purchasing JetBlue airfare on the card, and the rewards are free JetBlue airfare. The standard version offers a limited-time sign-up bonus as well as perks with no annual fee. The Plus version with $99 annual fee is best for frequent fliers who can take advantage of the free checked bag feature and also the 5,000 point anniversary bonus. However, if you don’t fly JetBlue enough to have the opportunity to either earn or spend the points, then you should just stick with a more general travel rewards card like the Chase Sapphire Preferred or a top cash back card like the Citi Double Cash.

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