Is an Airline Miles Credit Card Right for You?

Are you a frequent flyer? If you make frequent trips via airline travel, you are likely signed up with a certain airline’s Frequent Flyer Program, where you earn miles redeemable towards free trips every time you fly.

Would you be better served by a credit card that can help you earn more miles for every dollar you spend? Even if you are not a frequent flyer, a credit card with “flyer miles” rewards can help you earn points toward free airfare.

What are your travel vs. spending habits?

Before you apply for a credit card with flyer rewards, you must ask yourself if you are the type of credit card user who spends enough to make a substantial point accumulation. If you fly frequently, a rewards card can help you earn miles quicker. However, if you do not fly frequently and do not use credit cards often, it may take years to accumulate enough “miles” to redeem for a free ticket.

To get the most out of an airline miles credit card, be sure you can afford to spend enough and fly enough to make the card worthwhile.

Airplane © Joshua Davis

Fees and interest

Credit cards that offer airline miles often come with annual fees. If you acquire a miles card with a $50 annual fee, and it takes you 5 years to spend enough to earn a free ticket, you’ve spent $250 for the benefit which could be the cost of a ticket alone. Add that to any interest you may be charged on revolving balances, and you may end up getting nothing for free after all.

Find a miles reward card that offers no annual fee and low interest. It’s always best to pay your balance in full each month to get the full benefit.

Specific airline or general air miles?

You can request a credit card rewards program from a specific airline that you use frequently. The miles you use will be applied to that airline’s frequent flyer program in which you are registered. These cards generally have a higher annual fee attached to them.

However, there are other credit cards available that offer miles that can be used for a variety of airlines. You can choose the airline for which you want to apply your miles and redeem them according to their guidelines.

Use your rewards

Keep track of your earned points and be sure to apply them to your frequent flyer program. When you have enough miles to earn a free trip, always take advantage and redeem them for your free airfare. Airlines are notorious for going out of business without a moment’s notice, and your airline miles are not any good after they declare bankruptcy.

Airline miles are just another way credit card companies reward you, the consumer, for using their card. If you determine that a miles card can benefit you with free travel, then look for a credit card that offers the best deal for the airline you travel with most.

Write to Grace Carter at grace@creditdonkey.com

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