Mileage Credit Cards
Mileage credit cards can be a tremendous help if you travel often. By using a mileage credit card, also known as frequent flyer credit card, you can accumulate additional points towards free travel with each purchase that you make. Over time, a mileage credit card can save you a great deal of money on airline travel. Here is what you need to know about mileage credit cards.
Sponsors for Mileage Credit Cards
Mileage credit cards are typically sponsored by an airline (or other
travel company), by a charge card company, or by a bank. Nearly every major
airline has a frequent flyer program. If you are already a member of an
airline frequent flyer program, then you can get free mileage by using
mileage credit cards to make your every day purchases. Bank-sponsored
credit cards typically offer miles for a variety of airline frequent flyer
programs. Airline-sponsored cards, on the other hand, typically only offer
mileage benefits for a specific airline program.
Focus on a Specific Airline
You will get the maximum amount of benefit from credit card miles by
focusing on a single frequent flyer program. Often, a mileage credit card
is linked to a specific airline frequent flyer program. Make sure that all
of your mileage credit cards earn miles for the same program and your miles
will add up more quickly.
Earn on a Variety of Purchases
A benefit of having a mileage credit card is that you earn miles on many
different things that you purchase, not just on airline tickets. In
addition, you may able to use your accumulated miles for perks like
upgrading an economy airline ticket to a first class ticket. Sometimes
balance transfers don't accumulate additional miles. Examine your specific
credit card agreement to find out the specific details for your card.
Mileage Expiration
Airline miles used to expire several years after they were earned. This
meant that sometimes miles expired before they could be used. Most frequent
flyer programs have changed their mileage expiration policy. Now, it is
unusual for frequent flyer miles to expire unless your account has been
inactive (with no new miles earned) for a period of several years. To be
sure, check the specific details of your frequent flyer agreement.
Other Concerns with Mileage Credit Cards
When considering mileage credit cards, you should analyse the same factors
that you would look at for other credit cards. These factors include:
Credit Card Fees
Find out what fees are required by the mileage credit card. Some common
fees to watch for include late fees, annual fees, and termination fees.
Grace Period
Consider the grace period of the mileage credit card. A credit card grace
period is the number of days before the company charges interest on
purchases.
Interest Rates
Determine the interest rate of the mileage credit card. Discover whether
the interest rate is fixed or variable.
The Bottom Line
If you travel frequently, then mileage credit cards may save you quite a
bit of money. To get the most from a mileage credit card and a frequent
flyer program, it is best to concentrate on a single airline's program.
When you select a mileage credit card, it's also important to consider such
factors as credit card fees, grace period, and interest rate.
