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Are Frequent Flier Credit Cards Really Worth It?
With airplane ticket prices skyrocketing, travelers are always on the lookout for saving as much as possible on each flight, hence the popularity of travel deal websites. Besides hunting for deals online, another way people can save on flying is through the frequent flier credit card.
As with other rewards credit cards, frequent flier credit cards offer rewards to consumers who build up rewards points or “miles” by making purchases with the card. Eventually those points can be converted into discounts on tickets or free airfare. You can apply for a frequent flier credit card the same way that you would apply for a regular credit card, but these high rewards cards are often difficult to get if you have poor credit.
How Do Frequent Flier Credit Cards Work?
Every time you use your frequent flier credit card to pay for a purchase, you will receive points based on the cost of that purchase. The amount of points you receive for each dollar of your purchase varies depending on the card company, but it is usually around one point per dollar. If, however, you use the card to purchase plane tickets, many credit card companies will offer you twice as many points, or two points per each dollar.
There are two different types of frequent flier credit cards. The first type is offered by a specific airline, and the other is offered by a credit card company.
Cards Offered By an Airline
Many airlines offer their own frequent flier credit cards, all of which will carry a standard MasterCard, Visa, etc., logo and can be used anywhere. However, you will only be able to convert points into free airfare from that particular airline. These cards might be handy if you live next to an airline hub, and fly only on that airline, but they are also limiting. If, for example, you wanted to fly somewhere not serviced by the airline near you, you will not be able to use any of your points to help pay for your ticket. One advantage to this type of card is that the airlines generally do not impose a frequent flier expiration date.
Card Offered by Credit Card Company
The other option for frequent flier credit cards are those offered by major credit card companies, which are much more flexible. You can earn points toward flying with any airline, so there is no need to constrict your travel to one airline (and one set of locations). These cards are also more likely to offer other standard credit card perks, like zero percent interest for the first year.
How much can I save?
It depends on the card offer and how much you use your credit card, but with a frequent flier credit card you may be able to save hundreds to thousands of dollars on plane tickets each year. Many frequent flier credit cards require you to earn around 15,000 points before redeeming a domestic flight ticket, which could take a while if you only use your credit card for minor purchases. However, some credit card companies will award you with a large number of points (around 20,000) just for activating the card. This means you would start your rewards program with a free domestic flight—a nice perk.
Are The Cards Really Worth It?
While frequent flier credit cards are extremely tempting in the high-priced world of air travel, there are a few things to consider before signing up for one of them. It is important to read the fine print on the credit card contract to fully understand what the card will offer you in the long run.
While you consider your options, here are a few things to remember about frequent flier credit cards:
- Hefty annual fees—Because the rewards they offer are so great, many frequent flier credit cards require you to pay a large annual fee, sometimes as much as $75-$100, in order to reap the benefits.
- Airlines may incorrectly enter miles—Sometimes airlines will record an incorrect (usually lower) number of miles on your frequent flier account, and it is difficult to get this problem fixed. Similarly, airlines occasionally neglect to enter the miles at all, which means that you have paid for a flight without receiving any points.
- Interest rates are extremely high—Because frequent flier cards are rewards cards, they have higher interest rates than most credit cards, often as much as twenty percent. If you do not pay off your bill in full every month, frequent flier cards may end up costing you more than they save.
- Blackout dates and restrictions—Many frequent flier cards do not allow you to convert your points into tickets during busy travel times. Also, your points may expire within a short amount of time, which restricts you to traveling before a certain date.
Before signing up for a card, make sure to carefully read the card’s terms and conditions. Frequent flier credit cards can be a convenient and economical way to earn free flights, but make sure you know the difference between the offer featured in large print, and what is hidden away in the fine print.
About the Author:
Paul Basco Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card Offers online. At GettintingaCreditCard.com, we offer credit cards for bad credit, low apr credit cards, instant approval credit cards and much more.
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