With an uncharacteristic lack of fanfare, Delta and American Express have begun supplying a novel choice: Borrow frequent-flyer miles to utilize today to many Delta SkyMiles credit card holders; repay the miles . It’s a version of the sales come-on that is venerable, with miles instead of cash.
Here is how it works.
Delta SkyMiles cardholders log in to their American Express accounts and click on on the Benefits tab. Look for the “Request Fly Now, Earn After” button. Click it and, based on the customer’s account status and background, the amount of miles will be displayed.
SkyMiles members have six months to get back the borrowed miles via fees to the credit card that is once the miles have been borrowed. (Only credit-card miles count toward replacing the loaned miles.)
At the conclusion of this six-month period, the cardholder will be billed 2.5 cents for every borrowed mile that remains outstanding.
Offer or No Deal
The ability to borrow against mileage earnings is a true value-add for SkyMiles members.
On the other hand, first and foremost: The payback cost of 2.5 cents per mile is usurious. Anyone finding himself with a negative balance at the conclusion of the grace period will likely pay a significant penalty for the convenience of borrowing miles apart.
Another negative: Just credit-card miles count toward repaying the loaned miles. It makes sense, because American Express is the creditor, but it creates repayment that much harder.
In general, this is a good step for your SkyMiles program. It does come with a caveat, however: Don’t borrow more miles than you can expect to settle within six months.
Reader Reality Check
Is this an option you would take advantage of?