Traveling is fun and relaxing but often expensive. How to take a long-waited holiday in the sun a bit quicker? Banks offer a simple solution - airmiles credit cards. They give cardholders an excellent opportunity to get airline tickets and other travel-related incentives just for making day-to-day purchases.
Airmiles credit cards, also called frequent flyer credit cards, have become increasingly popular over recent years. Some years ago, the only way to earn airline miles was to buy an airline ticket. Luckily, the times have changed. Nowadays you can quickly earn air miles by making your regular purchases with an airmile credit card.
Typically, you will earn 1 mile for each dollar you spend. So if you need to make a purchase, it is a good idea to use your airmiles plastic. Thus you can turn your expenses for eating in restaurants, clothes, groceries, mortgage, long distance phone calls and stock trades into free travel incentives.
Furthermore, many airmiles cards come with additional freebies and benefits. For example, you can earn bonus miles for the first purchase or just for signing up. Some credit cards provide free companion tickets. They are a good choice if you're going to travel with a partner.
The air miles you accumulated can be redeemed for free tickets to different destinations, hotel stays, car rentals and upgrades from coach to business or first class. That’s why with an airmiles credit card you can enjoy cheaper travel. Plus, most of them offer additional discounts to customers through partner airlines or hotel chains.
A word of caution
Are you going to submit an airmiles credit card application? Don’t hurry. The best way to profit from airmile credit cards is to use your plastic as often as possible. However, any reward scheme is not worthwhile unless you can repay your debt in full each month. Otherwise, the interest can eat away the rewards you earn.
Another problem is hidden charges. Many customers complained of the fact that there are various additional costs for “free” flights. It happens when the flight itself is free, but you need to pay fees, taxes and surcharges in order to get it. Check how certain plans work before submitting your application.
Some airmiles rewards programs have "blackout dates" and route restrictions. For example, you won’t be allowed to claim free flights for summer travel. Do you really want to take a beach vacation in winter?
Some cardholders never accumulate enough points to get a free flight. Just imagine that you need to spend over $5000 to get a free flight! That’s why most airmiles are never redeemed. According to statistics, 50%-75% of airmiles go unclaimed for at least 5 years.
Airmiles rewards can lock you into a credit card for longer than you would imagine. Trying to accumulate enough miles for a free flight, you can stick to a single credit card for a very long period of time. It will prevent you from switching to another plastic, maybe more profitable than your current one.
Sometimes banks revoke air miles if they are not used within 12 months. Read the fine print to find out if there are miles expiration dates or a limit to the number of miles you can accumulate per year.
Trying to rack up airmiles, many people get into credit card debt. You have to be very disciplined and responsible with your money in order to avoid financial problems in future. If you think you can’t pay off your debt in full each billing cycle, consider low interest credit cards. Yes, they don’t provide airmiles rewards, but you can take the money you have saved on interest charges and late payment fees and use it to buy a ticket from a low cost carrier.