How Do Frequent Flyer Miles Credit Cards Work?
For those who often
travel by air, a credit card for frequent flyers can help them to save money since they can redeem the points or miles earned
for tickets on their favorite airlines. Many frequent flyer miles credit cards allow the card holder to redeem their points for
hotel accommodations, cruises, car rentals, and more.
How It Works
This type of card that is designed specifically for frequent flyers works just like any other type of credit card.
The difference is, you are rewarded for using the card with points or miles that can be exchanged for travel expenses. Nearly
every bank offers one or more frequent flyer miles credit card options, and choosing the one that is right for you should be
undertaken in much the same way that you would choose a standard credit card. Look for a card that suits your needs in every way.
Ideally, your credit card should have a low interest rate, it should not charge you an annual fee, and it should have a credit limit
that meets the needs that you have. Some people opt to get a card that allows them to pay off their balance each month without
paying any interest while still accruing miles or points towards free travel.
Is This Type of Credit Card Right for Me?
If you like to travel, then yes, this is obviously a great type of credit card for you to choose. Keep in mind that you will
need to be the type of person who spends a lot of money on their card in order to really stack up the rewards to make the card
worthwhile for you. In fact, if you plan to run a balance on the card, the cost of the interest on most cards would outweigh
the benefits of getting reduced or free air travel. If you don’t travel by air, then this is not the right type of rewards credit
card for your needs.
Typical Frequent Flyer Miles Credit Card Terms
The typical credit card for frequent flyers terms that you will find on most cards of this type give you a particular number
of miles for every dollar that you spend on the card. Usually, this is around two miles for every dollar purchased. This can
really vary a lot though, based on the card that you choose and the bank that issues the card. Using this scenario, when you
spend $100, you have accumulated 200 miles. Most trips, however, “cost” three or more thousands miles, so it can take a number
of purchases before you can exchange your miles for a trip reward.
Getting Approved for Your Card
There are many companies that offer credit cards for frequent flyers, including Capital One, Discover, Citibank, HSBC, American
Express, and others. Most offer an online application that allows you to apply for the credit card from the privacy of your home
or office and be given an instant decision, based on your creditworthiness. In most instances, you will need a fair to good credit
score in order to qualify for a frequently flyer miles credit card. If you have excellent credit, there are many credit cards out
there that offer great air mileage rewards, super friendly terms and low interest.
Frequent flyer miles credit cards, as you can see, are a great way for you to offset the cost of your love of traveling!
Updated: January, 8 2012