Over the past two years, I've seen airline and travel rewards credit cards come and go. With the exception of a few cards, most charged high interest rates and absurd annual fees that offset any "rewards” that might be earned. On top of that, many required spending of $35.000 just to get a "reward”. It was not the best of times for consumers.

Things have changed with the recent introduction of the Blue Sky credit card from American Express. The Blue Sky credit card is by and far the best travel reward credit card to hit the market in years. It not only offers great savings, but the highest rewards percentage of any card.

The Savings: Given that most travel rewards cards charge annual fees of $50-$85, you immediately save a minimum of $50 by using Blue Sky. That's no small change. Additionally, the low APR is currently 12.24% (as of 1/17/06), about three to four percent less than other travel and airline credit cards, which generally charge 14% to 17%.

Additionally, Blue Sky also offers a 0% introductory APR on purchases for up to 6 months. These factors make the Blue Sky from American Express an incredible value for a rewards credit card.

The Rewards: Like other travel and airline reward cards, you earn 1 point for every dollar spent with Blue Sky. However, 1 point with Blue Sky is worth a lot more than 1 point with any other credit card. Here's why: it only takes 7500 points to earn $100 towards any travel purchase. That's the same as earning 1.33% in rewards on every dollar spent.

In addition to this great rewards return percentage, Blue Sky from American Express gives you the freedom to save on any flight, hotel, rental car, or cruise-at any time, without blackout dates or travel restrictions.

Hopefully, the introduction Blue Sky will convince other issuers to follow a new trend and the market will see more low apr, no annual fee travel rewards credit cards. Currently, no other company has stepped up to the plate.

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