Airline Rewards Credit Cards
Airline Rewards Credit Cards: Are They Right for you?
There are many excellent reward-style credit cards available to consumers, and one of the more popular programs is airline rewards credit cards. The idea sounds tempting: spend money as you normally would and receive rewards or points good toward airline tickets. For those of us who travel frequently for business or pleasure, airline rewards credit cards can be quite beneficial and practical.
However, there is often much confusion regarding what airline rewards credit cards are and how they work.
What Are Airline Rewards Credit Cards?
Airline rewards credit cards allow cardholders to earn frequent flier miles by simply making purchases.
How Do They Work?
Airline rewards credit cards give customers frequent flyer miles for each purchase. Most credit cards with airline rewards allow cardholders to use their frequent flier miles toward their airline of choice; however, the cardholder must accumulate a set number of frequent flier miles before they can cash them in for a domestic flight.
Who Sponsors Airline Rewards Credit Cards?
An airline rewards credit card may be sponsored either through an airline or a credit card company. If you choose to use an airline rewards credit card that is sponsored through an airline, you will likely have to use your frequent fliers miles for that particular airline. However, bank-sponsored airline rewards credit cards generally allow cardholders to use their frequent flier miles on their airline of choice.
However, it is important to point out that many airlines that offer airline rewards credit cards also provide customers a bonus when they sign up for the card, which may equal thousands of bonus miles. If you are a cardholder who frequently flies the same airline, a rewards credit card through that airline may allow you to earn more frequent flier miles in a shorter period of time.
What are the Pros?
Frequent flier airline rewards are not difficult to accumulate if you spend frequently on your airline rewards credit card. If you make a lot of purchases, you will likely earn many frequent flier airline miles, which are good towards free or reduced airline tickets.
Many airline rewards credit cards also have partner retailers that allow cardholders to receive additional frequent flier miles when they make purchases with the select retailers. To make the most of your airline rewards credit card, it is important to keep up to date on all promotions and partner retailers so that you can earn frequent fliers miles more quickly.
What are the Cons?
Frequent flier airline rewards credit cards may have high APRs, which could offset any perks you may be receiving for frequent flier miles. Therefore, an airline rewards credit card may not be right for you if you can’t pay your card in full each month.
In addition, many airline rewards credit cards charge a costly annual fee, which could again reduce the benefits of your frequent flier airline miles.
A few airline rewards credit card companies may also restrict the times or dates when you can travel, and they may also expire if you don’t use them within a certain time period. Subsequently, it pays to carefully read the terms of all airline rewards credit cards so that you don’t lose your frequent flier miles or choose a card that has too many travel restrictions.
Is an Airline Rewards Card Right for me?
The best way to determine if an airline rewards credit card is right for you is to figure out how much you have to spend before you can cash in a free airline ticket. Individuals who use their credit cards for traveling, or individuals who use their credit cards frequently throughout the month, will benefit most from an airline rewards credit card.
In other words, if it will take a considerable amount of time to earn just one airline ticket, then an airline rewards credit card may not be right for you.
Airline rewards credit cards can be a great way to work toward free or reduced airline tickets, and they are ideal for individuals who use their credit cards frequently and who enjoy to travel. As always, it is best to consider all of your options before applying for an airline rewards credit card so that you can be sure you are making the most well informed decision for your financial situation.
