Get airline miles and fly more

Airline miles, or air miles, are rewards offered by credit card companies to their customers who shop frequently. These air miles rewards get converted to discounts on air tickets, hotel stays, or even on car rentals.

Many of the common credit cards offer air miles as rewards. Instead, you can also go in for what is known as an airline miles credit card, which is a type of rewards credit card sponsored by airline companies. If you are using an airlines miles credit card, then you will have to fly only with the card-issuing airline, but you will make more bonus points with this kind of card. If you fly a particular route with an airline you consider to be your favorite, then you should get an airlines miles credit card of that airline, if there is one.

There is no such thing as the best airline credit card. Some cards offer you as high as 15,000 miles when you sign up, some reward you with an air mile for every dollar you spend, while some reward you with a free ticket if you successfully accumulate a certain number of air miles in a month. All in all, an airline miles credit card is a good thing if you fly regularly and pay your bills on time.

Why do airlines offer airline credit cards?

The airline business, just like the credit card business, is fiercely competitive. Every airline company wants to create a set of loyal customers - preferably business travelers, who fly frequently. Credit cards too cash in by offering credit cards with airline miles to complement the airline reward credit cards offered. American Airlines credit card is one among the few airline credit cards that are popular

Of course, customers can fly any airline they choose, but airline companies try to bring them into their fold by offering air miles rewards.

Do you really need an airline miles credit card?

The first question to ask before signing up for an airline credit card is whether you really need such a card. Here are some key elements you must factor in before you go for such a card:

• Your credit history should be really very good
• It is important that you pay your bills on time. This is important as such cards carry a higher rate of interest.
• You should be charging a whole lot of expenses to your cards (at least $ 2000 per month) to take advantage of your card.
• Ensure that the airline whose credit card you have flies to a number of locations and is not just confined to some routes.
• While redeeming miles you have to be very flexible and not adopt a rigid attitude.

Comparing Airline credit cards

Before you take any credit card, airline credit card or any other, always compare its key features with the competition. In the case of airline miles credit cards, here is what you should be comparing:

• Look for the date when the earned “air miles” expire. Some cards do allow the earned air miles to be carried over indefinitely, but others stipulate an expiry period for the accumulated miles. So, if you're going for an airline credit card just because you want to accumulate a massive number of air miles for an extravaganza vacation that you plan to take after some years, be sure careful to look for the about reading the expiry date of the accumulated air miles.
• Airline credit cards charge a higher rate of interest. Compare the APR of the competition and do not be lured in by any 0% interest offer.
• The airline credit cards carry an annual fee or membership fee, the amount depending on the card type (regular, gold, or platinum, etc.). If a card is offering you higher rewards, then it may be charging you higher fees.
• Compare the minimum airline miles you need to accumulate before you get to redeem them.

In the end, any reward gets translated to a 1% discount on your charge, unless the card company is charging more fees and higher interest - in which case the reward percent may increase a tad.

Advantages and disadvantages of an airline credit card

Airline miles credit cards are advantageous if you are a frequent traveler on a specific airline. If you use your credit card right, then you can use the reward air miles to pay for your flights, hotel stays or car rentals.Airline credit cards have their disadvantages too. For example:

• When you redeem your air miles for booking travel tickets, you might have to pay a booking fee. So, actually, you may be redeeming less number of reward air miles than you had planned.
• Many airlines don't accept air miles rewards, especially the budget airlines. And these rewards are not accepted if you want to book a child's ticket. So, if you're planning to use up the air miles earned for a vacation trip, then you have to pay your child's fare and choose an airline that accepts air mile rewards.
• Airline credit cards stick to you for a long period as the time you take to accumulate adequate air miles rewards is quite substantial. If there are better cards going around, you might feel helpless, as you realize you suddenly cannot ditch your old card because you already have accumulated some air miles on it.
• Booking a ticket with air miles is much less convenient and more cumbersome than booking a ticket online.

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