Fly With a Frequent Flyer Credit Card
A frequent flyer credit card is most beneficial to people who have to travel
frequently for leisure or business. There are various credit cards to choose
from, depending on the flexibility of the card and the needs. Basically there
are two types of frequent flyer credit cards to choose from: airline-specific
rewards credit cards and generic mileage credit cards. Both these credit cards
earn the credit card holder 1 mile per dollar spent on the card. The difference
between the two is that the airline-specific cards give more avenues to earn
miles through charging for cost of hotel and rental car companies with whom the
airlines has included in its frequent flyer loyalty program. These cards
usually have an annual fee, which most generic programs do not. Those who have
a strong preference for a certain carrier are advised to choose their card over
a generic card. Generic airline credit cards offer the advantage of using the
miles accumulated on any airline. Once you reach the mile redemption threshold,
you can convert the cash earnings to cash and buy the ticket of the required
airlines form the travel booking agency. Be careful, as some of the generic
programs require a ticket redemption fee at this point! So make sure to make
appropriate inquiries!
The Benefits of Frequent Flyer Credit Cards
Most of the frequent flyer credit cards not only offer miles for every dollar
spent, they also offer bonus miles/points upon receiving your card. There are
even cards which offer bonuses for balance transfers! So when choosing the
right card for yourself, choose wisely and choose a card which has a low
introductory rate.
By flexibility in credit cards, it means that one gets miles for dollar spent,
no matter where the flights are placed. It also includes points on being able
to use the miles incurred on any airline and even being able to use these miles
on travel-related costs such as car rentals, cruises and hotels. Other
incentives offered by most credit card companies are cash, telephone credits,
and rebates on appliances, cars and loads of other goodies!
It has to be noted that the credit card issuer transfers the miles to the
frequent flyer account once a month where they will be clubbed with the other
miles, which may have been earned from flying using other airline partner
services. These miles basically do not expire. Just check with your specific
airline frequent flyer program on this point. Most of these programs do not
allow miles in the account to expire if one has account activity (purchasing of
a ticket or redeem miles) at specific intervals (say once every three years).
Cash or Redeemable Points?
The option of priority between cash or perks like gas points and airline miles
lies in the hands of the card holder. Basically, cash is better as one can use
cash for buying this stuff at one’s own schedule and leisure. You won’t be
forced to buy from their specific companies or services.
There are some "goodie" cards, which offer great services with their cards. One
of them are the affinity type cards of companies like Toys R Us, which offers a
frequent-buyer type of program for their VISA card, where they offer 1% cash
back on all purchases made in their store. Even Phillips offers points towards
their own electronic gear.
You have to determine if your frequent flyer card has any restrictions like
“black out” flights or restricted seating. And as in any credit card, you first
need to know the terms and conditions of the credit card to know what the
credit will cost you and the benefits the card provides.
There Are Faster Ways for Earning Frequent Flyer Credit Card Points
Of course, the quickest route to free travel is to fly as often as possible and
charge the tickets on your credit card as this will generate tens of thousands
of miles a year. Business travelers tend to be the recipients of the most free
travel awards. Leisure travelers can take advantage of everyday spending
opportunities like charging groceries, gasoline and setting up automatic
recurring payments on their cards to add up to their miles. Another avenue to
rack up significant miles and get past that average 25,000 mile threshold are
the packaged vacation deals.
Frequent Flyer Credit Cards
If you travel often and want to reduce the amount of credit cards you use on a
regular basis, you may want to consider frequent flyer credit cards. Below are
some of the great benefits of frequent flyer credit cards, as well as
suggestions for how to choose the best frequent flyer credit card for you.
Use the Card for More than One Purpose.
Many of the cards that offer frequent flyer miles can also help you to save
money when it comes to your everyday expenses. Some cards allow you to save
money on groceries and even earn cash back on your purchases, so that you can
afford to travel. And, the more you travel, the more points you’ll earn towards
your next trip. You may also be able to save when you purchase items at certain
locations—you’ll usually receive one point for each dollar you spend. It may be
a good idea to make your frequent flyer credit card the main credit card you
use to pay household bills and manage your budget. This way, you can earn
points quicker and be able to save a considerable amount of money whenever you
travel.
Review the Terms and Conditions of Your Frequent Flyer Credit Card
A frequent flyer credit card is actually a credit card, just with a few added
benefits. So, you’ll still need to make sure that the annual percentage rate
(APR), interest rate, and line of credit fit your needs and are affordable
based on your budget. If you’re looking for lower APRs, you may want to apply
for the Miles Card from Discover Card, which has a current APR of 0% for 10
months; afterward the rate rises to 9.99%. Or, you may consider the Chase
Continental World MasterCard, which offers a fixed APR of 7.9% for six month;
after that, the rate rises to 9.4%. The Miles Card offers no blackout dates
with the Air Travel Rewards Plan, and when you use the Chase Continental World
MasterCard, you’ll save money when you shop at places like Hertz Rental Car and
CVS Pharmacy. You may also want to compare application prices as well as annual
fees to determine which frequent flyer credit card to select. Whether you’re
considering a frequent flyer credit card because you vacation often or travel
for business several times a year, the card is a great investment if you want
to save money each time you go out of town.