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Airline miles, sometimes called frequent flyer
rewards, are loyalty programs offered by airlines
to give incentives for using their credit card.
Companies hoping to retain their customer base
offer rewards programs because it is much easier
than finding new customers. Airline travelers
accumulate flyer miles or points that correspond
to the distance flown and for most purchases
made with the card. Points or miles can be redeemed
for free air travel and upgrades, goods and
services.
To make the most of an airline rewards card,
you need to understand the difference between
a specific frequent flyer card and an generic airline miles card. Both have pros and cons, but the one you choose will depend on your personal traveling and spending habits.
Frequent Flyer Credit Cards - These cards are
for people who are loyal to a specific airline
or otherwise compelled to travel with them exculsively
for business travel or because the airline has
a hub in your city. Frequent flyer credit cards
are issued by most major airlines to encourage
more travel. These cards will provide the highest benefits, but are the least flexible.
Airline Miles Credit Cards - Offering more
flexibility, this class of cards is not affiliated
with a specific airline and typically rewards
users with points that can be redeemd for travel
perks, merchandise and services. Issued by most
major credit card companies, cardholders can
choose from any of the airlines that participate
in the program to redeem points. If you have
no business restrictions or a dominant airline
at your city airport, this may be the better
choice for most consumers. But you're likely to earn less points / miles for every dollar you spend.
Important Terms and Conditions
- Annual Fees - Some of the more exclusive
airline reward cards charge an annual fee
of as much as $450, which can easily overwhelm
any possible reward benefit. If the annual
fee is so high that you can't possibly earn
rewards to match or exceed that amount, it
just doesn't make sense to use one.
- Annual Percentage Rate (APR) - Just
as an annual fee can eat up any advantage
to using an airline miles card, the same goes
for the APR. In fact, if you typically carry
a balance, you may want to reconsider using
this type of card and instead look for a standard
credit card with a low APR. But, if you pay
off the balance more often then not, then
find a 0% introductory offer with the lowest
ongoing APR airline miles card. It is essential
to do a cost benefit analysis on the various
available airline credit cards before committing
one.
- Earning Rewards - Bonus miles of
up to 15,000 miles are often offered just
for applying, a decent kick-start to your
reward efforts. Most programs have no limit
on the miles you can earn. The fastest earnings
come from programs that give 3 points for
using the card on airfare; 2 points on gas
and groceries and 1 point on all other purchases.
- Additional Reward Opportunities -
Look for promotions that earn double points
for making purchases in specific categories.
Earn points for making a purchase from a participating
vendor or from the airline retail outlet at
the airport or online.
- Redeeming Rewards - Some cards require
a minimum of 25,000 miles or points to redeem
for a domestic, round-trip airline ticket.
A few offer a one-way ticket for as little
as 14,000 points. Read the fine print for
possible restrictions or black-out dates.
- Reward Expirations - Miles remain
active from 18 months to an unlimited amount
of time, depending on the program terms. If
you're an infrequent flier, you will need
to keep close track of the expiration date
to avoid losing your rewards.
- Inactivity Policies - Accounts that
have no activity for 12 - 36 consecutive months
after enrollment may be deleted. Read the
terms.
Airline cards, just as all other types of credit
cards, have terms and conditions that may be
costly. Read all the fine print carefully to
ensure that it meets your lifestyle and spending
habits and to avoid being surprised by fees
or charges. For example, some reward programs
will eliminate all air mile rewards if your
payment is more than three days late.
The benefits offered vary from program to program.
Put in a little time and careful consideration
to find which air miles credit card program
is best for you. Once you find the right match,
apply online immediately and find yourself approved
in seconds.
* Be sure to see our complete list of Airline Miles Credit Cards >
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