When looking for a good rewards credit card, the Lufthansa Premier Miles & More World MasterCard may be exactly what you are seeking, depending upon what you require in a credit card.
Premier Miles & More® World MasterCard®
- Earn 20,000 award miles after first purchase and payment of the annual fee
- Earn 2 award miles per $1 on ticket purchases directly from Miles & More integrated airline partners and 1 mile per $1 on all other purchases
- Annual Companion Ticket after first purchase and annually thereafter
- No foreign transaction fees on purchases made outside the U.S.
- Redeem miles for flight awards and upgrades on Lufthansa, Austrian Airlines, Brussels Airlines, SWISS, Star Alliance airlines and other partners
- 0% Intro APR on Balance Transfers made within 45 days of account opening. After that, a variable APR currently 15.99% or 24.99%, based on your creditworthiness
- $79 Annual Fee, waived for SEN and HON Circle Members
|Intro APR||Intro Period||Regular APR||Annual Fee||Credit Needed|
|See Terms*||See Terms*||15.99% or 24.99% (Variable)*||$79*||Excellent*|
When you make your first purchase, you can receive 20,000 award miles. This also applies to balance transfers and is an attractive reward for those that travel frequently. The deal is even better when you perform a second balance transfer or balance transfer in addition to a first purchase because you receive 15,000 more miles. So if you make a purchase and do a balance transfer or do two balance transfers to the card, you are able to earn 35,000 award miles.
From there, you can then earn 2 award miles for every $1 spent on purchases that are made directly from the Miles & More airline partners. These airline partners include:
- Adria Airways
- Austrian Airlines
- AirDolomiti, Croatia Airlines
- Brussels Airlines
- LOT Polish Airlines
- Lufthansa Regional, Lufthansa, and Lufthansa Private Jet
While there are bonus miles to be earned on balance transfers when you do your first one or two balance transfers or when you make your first purchase, miles are then earned on purchases only. They cannot be earned on Convenience Checks, cash advances, or through finance charges and card fees. The account must also remain in good standing in order for it to receive miles. If purchases are made on the card and the account is past due, the dollar amounts of those purchases will not accrue miles.
Also to earn miles, the card must be used at least once every six months. Points may also be forfeited within a billing cycle if the payment is late. Lufthansa does reserve the right to close the account and forfeit all earned mileage points if the cardholder fails to meet the requirements.
While this may sound rather strict, the good news is that miles have no expiration under certain conditions. The miles do remain valid indefinitely as long as a purchase is made with the card once a month and the card has been held for at least three months. If any conditions are not met, this three month mileage expiration may be reset, causing reward miles to expire. Making sure the account is in good standing also means being able to receive a free economy class companion ticket every year on the anniversary date of the account.
There are a number of areas to pay attention to in regards to the APR. First of all, credit worthiness and the market are going to determine the exact annual percentage yield. This rate is always subject to change and can range anywhere from 15.99% to 24.99% or higher if the Prime Rate would change and force credit card companies to implement changes to their interest rates.
If you need to perform balance transfers, there is an introductory APR of 0% for the first fifteen months after account opening. After this introductory period, Lufthansa will increase the interest rate based upon credit worthiness, which will be the same as your purchase APR.
For cash advances, the APR increases to a flat 25.24%. This rate can change based upon the Prime Rate, which relies upon market conditions.
The last type of APR is called a “penalty APR” that can increase your purchase and balance transfer APR to up to 27.24%, depending upon credit worthiness and the Prime Rate. This is the APR that is applied to the account if a late payment is made. It is possible for this penalty APR to be applied to the account indefinitely. It is up to the discretion of Lufthansa as to whether or not to reduce the APR after a good account history is maintained for a period of time that satisfies them.
If you want to avoid paying interest on your purchases completely, you can pay off your balance in full within 23 days of your billing cycle. Your due date is always going to be 23 days from the day your new bill cuts. If you are charged interest, the interest charge is never less than $2.
Annual Fee and Other Fees
While the APR seems rather competitive when compared to other frequent flyer credit cards, this is a travel credit card that offers very generous frequent flyer rewards that are above the industry average. It is because of this fact the Lufthansa Premier Miles & More World MasterCard does have an annual fee of $79. This fee is waived for Senator and HON Circle Members.
In addition, you have:
1. Transaction fees
The transaction fees are for balance transfers, cash advances, and foreign transactions. When you perform a balance transfer, the fee is 4% or $10 of the amount that you transfer. It depends on which is greater. If you make the balance transfer within the first 15 months of account opening, which is the period of the 0% introductory APR on balance transfers, the fee is $10 or 3%.
Cash advances are $10 or 5% of the amount of the advance, whichever is greater. This is in addition to the cash advance APR that Lufthansa has established at the time you make the transfer.
The last transaction fee is the foreign transaction, which is 1% of the transaction amount in U.S. dollars. This is on a per transaction basis. If you make 5 transactions in one day, then you will be charged five separate fees. This is typical of a credit card that can be used on a worldwide basis.
2. Penalty Fees
The penalty fees are rather standard in that the late payment fee is an industry average of $35, as is the returned payment fee. There is no over-the-limit fee, which is favorable in that any late fees or other fees charged by Lufthansa themselves cannot cause an over-the-limit fee to be assessed if those fees cause the balance to be exceeded. This too is an industry norm.
The Bottom Line
Overall, the Lufthansa Premier Miles & More World MasterCard is a credit card whose target audience is the frequent traveler. If you are not someone who flies often or flies within the network of airlines that Lufthansa works with, then this may not be the card for you. This is not a card for someone looking to be able to receive cash back or other types of rewards, as this is a cut and dry frequent flyer card. For those that fly often with access to the airlines mentioned earlier, this is a card that is well worth the $79 annual fee, as it will save a lot of money in travel costs.
Have you had any personal experience with Lufthansa Premier Miles & More Card?