BMO Air Miles World MasterCard Review

bmoairmilesworldmastercardreview.jpgThis card is a good choice for anyone with a high annual spend that wants to collect Air Miles at a faster rate than the regular BMO Air Miles MasterCard, and also flies often to take advantage of the 25% discount on the number of required Air Miles for each flight.

Quick Facts

Annual Fee $99
Interest Rate 19.90%
Min. Income $60,000 personal, $100,000 household
Reward Type Travel Points
Reward 1 mile per $15 spent, 25% bonus at Shell, 100% bonus at Avis and National car rental
Reward Return 0.7-1.25% of spending (depending on how you value Air Miles)
Sign Up Bonus None
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Positives:

  • Exclusive 25% discount when redeeming Air Miles for flights.
  • The highest earning rate of all BMO Air Miles cards.
  • 25% bonus (Air Miles) at Shell locations, 100% bonus (Air Miles) at National and Alamo Car Rental and 25% off regular rental rates.
  • No limit to the amount of Air Miles rewarded.
  • Easy to use, straight forward online account access through BMO.
  • Some extended warranty and travel benefits available.

Negatives:

  • $99 annual fee is high for the accrual rate you get.
  • High minimum personal ($60,000) or household ($100,000) incomes needed to qualify. They may be somewhat flexible on this depending on your credit history.
  • Few good opportunities to earn bonus miles above and beyond the regular rate.
  • The platinum Air Miles card from American Express has similar earning rates and perks for a lower annual fee.
  • No sign up bonus except during promotions.

Insurance Package:

  • Extended warranty - up to one year
  • Purchase protection - 90 days
  • Travel & car insurance coverage

Air Miles Rewards Analysis

This card is geared towards those who collect Air Miles, have a high annual spend and require additional insurance coverage. Here is a breakdown of how many Air Miles over a span of 5 years you can earn using this card. The table below assumes an Air Mile is valued at approximately $0.15.

‘Light spend’ - $600 per month

‘Medium spend’ - $1,000 per month

‘Heavy spend’ - $1,500 per month

Category

Year 1

Year 3

Year 5

Light spend

$72

$216

$360

Medium spend

$120

$360

$600

Heavy spend

$180

$540

$900

BMO Air Miles MasterCard

The BMO Air Miles MasterCard is the regular option of the regular BMO Air Miles World MasterCard. It offers 1 Air Mile for every $20 spent but has no annual fee and no minimum income requirement. Many people wonder whether the annual fee is worth it and at what point the BMO Air Miles World MasterCard becomes more lucrative than the BMO Air Miles MasterCard.

In general, if you spend more than $20,000 per year you’d be better off using the BMO Air Miles World MasterCard than you would using the BMO Air Miles MasterCard. After an annual spend of $20,000, the $99 annual fee is recovered and the rewards from the BMO Air Miles World MasterCard become more lucrative than the regular BMO Air Miles MasterCard.

Learn more: Full BMO Air Miles MasterCard Review

How to Maximize Air Miles

The BMO Air Miles World MasterCard offers 1 Air Mile for every $15 spent. The card offers a 25% bonus at Shell locations and 100% bonus at National and Alamo Car Rental locations. An easy way to collect more Air Miles is to fuel up at Shell and rent vehicles from National or Alamo (assuming their prices are competitive).

Related: A Simple Strategy For Maximizing Air Miles

The best way to maximize Air Miles with this card is to use all Air Miles to redeem for flights. The card gives a 25% discount on the number of Air Miles needed for each flight, so the savings can add up quickly.

Let’s say you wanted to use your Air Miles for either a blender or short-haul flight. Both require 1,500 Air Miles. Assuming an Air Mile is worth $0.15, the blender would cost you $225 worth of Air Miles. But the flight would only cost you $169 of Air Miles (plus applicable taxes) because of the 25% discount on the number of required Air Miles. This could really add up over a year, especially if you planned on flying numerous times.

The Final Verdict

The BMO Air Miles World MasterCard is best for those who spend $20,000 annually (or more) and wish to collect Air Miles at a faster rate – and are willing to pay an annual fee of $99. The best feature of the card is that it gives you 1 Air Mile for every $15 spent and a 25% discount on the number of Air Miles required for flights.

This card would be best for anyone who already has a significant Air Miles balance and is looking to redeem them on flights.

Apply Now!

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