Questions to Ask Before Deciding to Get an Airline Miles Credit Card

Traveling is fun but only if you have enough money to spend for the activity. In this day and age, it is almost a necessity to look for a method that could alleviate the burden of huge expenses. One popular way of decreasing the costs of travel is through the use of airline miles credit cards. As you may have observed, these types of cards are especially made for air travel and are issued to provide people help in reducing travel costs when flying with a particular airline.

If you are thinking about getting a credit card and you are eyeing an airline card, there are a few factors that you should consider. First, ask yourself the following questions to determine whether this type of card is good enough for you:

Question No. 1: Are you a loyal customer?

Airlines typically have frequent flyer programs to attract new consumers and to retain old ones. As you continually use their services, you will build and rack up on your frequent flyer miles. Usually, these miles have cash values, which you can swap to airline tickets and the like. If you are a loyal customer, meaning you generally fly on a particular airline, an airlines credit card will do you good.

Question No. 2: Are you a frequent flyer or purchaser?

Many confused consumers get an airline card since they typically have higher bonuses than traditional credit cards. Before you get your own plastic, ask yourself whether you fly more or you purchase more. Those who regularly travel by air would benefit from an airline card without question. However, if you travel but you also make purchases with your card, the decision may be a bit difficult to make.

One good technique that you can practice is to examine the rewards programs of your card options. Look at the ways on how you will earn more points. There are cards that could be rewarding to both flyers and purchasers. It is up to you to make your choice, depending upon your needs and preferences.

Question No. 3: Are you ready for the costs?

Needless to say, airline cards are expensive. They have higher APRs than conventional credit cards. Most of them also have other fees, such as annual fees, late fees, and penalty charges among others. The APRs need not be a problem to those who dutifully pay their bills each month. Missing a payment is definitely not an option with this type of card. If you do, the points or miles that you have earned become insignificant due to the high penalty rates.

Some airline cards do not have annual fees, which make them a bit more advantageous than those that carry such fee. However, if you look at the rewards, a no-fee card usually have inferior rewards than those with annual fees. Calculate the total amount of rewards that you need to earn to eclipse the annual charge. That way, you could find out if the card is a true rewards card or not.

Airline credit cards are created for travelers who frequently travel with a specific carrier. It comes with highly coveted perks, such as free seat upgrades, priority boarding, and VIP treatment. However, they come with high fees so be sure you can afford the card and follow the strict rules before you sign up for one.