U.S. Bank LATAM Airlines Visa Signature Review
Updated October 24, 2016
The Facts
The Math
LATAM Visa returns 1 mile, i.e., 1.6 km per dollar spent for non-LATAM purchases. Our current valuation of LATAM kms is 1.1 cents a piece, thus 1 mile = 1.76 cents. In this way, even though the return rate for general spending is less than 2% as provided by Fidelity Visa or Citi Double Cash, LATAM Visa actually competes well with other miles card that return 1 mile per dollar spent. However, we will recommend Amex SPG over LATAM Visa for general spending, as you will earn 1.5*1.25 = 1.875 LATAM kms per dollar spent on Amex SPG if you transfer SPG points to LATAM kms in bulks of 20K.
The $75 annual fee will almost be offset by the annual 4,000 bonus miles, and you will enjoy several LATAM benefits such as one annual 20% discount, 25% bonus flight points, and three annual upgrade coupons, almost for free.
The Conclusion
LATAM Visa is a great card for LATAM flyers for the signup bonus and travel perks. As for general spending, we will recommend Amex SPG if collecting LATAM kms is your primary concern.
The Facts
- Annual Fees: 1st year free and $75 thereafter.
- Signup Bonus: 20,000 miles (32,000 kms) after the first use. Historical best bonus of this product: 40,000 miles in 2013.
- Rewards: 2x miles on LATAM purchases, 1x everywhere else. You also receive an annual 4,000 miles bonus upon renewal.
- Best Use of LATAM Pass miles: LATAM Pass is the frequent flyer program of LATAM airlines, a member of oneworld alliance. The most confusing part about this credit card is the fact that the LATAM Pass program is based on kilometers (km) not miles. LATAM Pass kms are generally valuable when redeemed for flights on LATAM or partner airlines. The miles you earn through this credit card are automatically converted to kms at around 1:1.6 (the actual conversion rate between miles and kms). So the 20K miles signup bonus is essentially around 32K kms, and the general spending returns 1.6x kms per dollar spent.
- LATAM Benefits: (1) 20% discount on LATAM purchases once a year (up to $1,000 in discount). (2) 25% flight miles (kms) bonus - you automatically receive 25% bonus when you fly LATAM. (3) Three one-way upgrade coupons each year. You have to purchase an economy class ticket on Base Plus, Flexible, or Full Flexible fare or redeem LATAM kms before you can use the coupon. You can only request your upgrade upon check-in (48 hours before departure) and there is no guarantee, as you are also competing with elites who apply coupons.
- Other Benefits: (1) Complimentary 24/7 concierge service. (2) Other standard Visa Signature benefits including Visa Signature Luxury Hotel Collection, Food+Wine, and Sports+Entertainment perks.
The Math
LATAM Visa returns 1 mile, i.e., 1.6 km per dollar spent for non-LATAM purchases. Our current valuation of LATAM kms is 1.1 cents a piece, thus 1 mile = 1.76 cents. In this way, even though the return rate for general spending is less than 2% as provided by Fidelity Visa or Citi Double Cash, LATAM Visa actually competes well with other miles card that return 1 mile per dollar spent. However, we will recommend Amex SPG over LATAM Visa for general spending, as you will earn 1.5*1.25 = 1.875 LATAM kms per dollar spent on Amex SPG if you transfer SPG points to LATAM kms in bulks of 20K.
The $75 annual fee will almost be offset by the annual 4,000 bonus miles, and you will enjoy several LATAM benefits such as one annual 20% discount, 25% bonus flight points, and three annual upgrade coupons, almost for free.
The Conclusion
LATAM Visa is a great card for LATAM flyers for the signup bonus and travel perks. As for general spending, we will recommend Amex SPG if collecting LATAM kms is your primary concern.