Airline
Credit Cards and Air Miles Credit
You need to ask yourself two questions if you have, or are
considering applying for an airline credit card.
- Which airline credit card can I use to reap the
benefits quickly?
- Are benefits available from the largest airline in my
area?
An airline sponsored credit card only allows you to focus on
one specific airline. If that particular airline controls the
majority of the destination routes from your area, it will give
you efficiency and convenience and it
will be extremely economical.
Bank sponsored credit cards allow you more freedom. Why?
Because the air miles that you accumulate can be used on a wide
range of airlines.
If you have no airline in your area that controls the
majority of destination routes, this is the card that will be
most beneficial to you.
Another advantage is that often the minimum amount of air
miles required before you can use them for travel is lower than
with an airline sponsored card. However, bank sponsored credit
cards are subject to a lot of fine print, so
use extreme caution.
Air Miles Credit Cards
Membership and annual fees can vary greatly for
different types of cards. Most major credit card
companies offer standard, gold and platinum air miles credit
cards. Keep in mind that the better the option, the higher the
fees.
Gold and platinum cards offer high credit limits but
membership and annual fees are also higher and these add up
quickly. Most major credit card companies offer introductory
air miles cards with 0 % interest. Why? Because they want your
credit card business.
If interest rates are of concern for you, an air miles
credit card should not be the card you choose because interest
rates tend to be very high.
Many air miles credit cards have a minimum number of miles
that have to accumulate before you receive a free or discounted
trip. Be sure to read the fine print and then read it
again. Be sure you understand all of the
stipulations.
Air miles credit cards can be very beneficial
if you travel frequently for business or pleasure. With
these types of cards, you use your credit card to purchase
all necessary goods and services.
In return, you accumulate rewards in the form of points and
then you redeem them for air miles. You then use the air miles
to get free or discounted trips to the destination of your
choice.
As an added incentive, airline credit cards often offer
bonus air miles at selected stores, or on specific travel
destinations. Usually, both airline and bank sponsored
cards give bonus air miles when you sign with
their company.
There are some disadvantages to having an air miles credit
cards. Usually these cards, have much higher interest rates
than standard cards, as mentioned earlier.
All these can add up quickly if you don't pay the entire
balance off each month. Another disadvantage is that these
cards are often used for unnecessary purchases in order to
accumulate points to be exchanged for air
miles.
As with all credit cards, in order for the cardholder to
reap the benefits, air miles credit cards have to be used
responsibly.
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