Thursday, August 12, 2010

What To Consider When Choosing An Airline Miles Credit Card

By Shannon Hilson

It goes without saying that an airline miles credit card is an incredibly efficient way to save money, manage your credit, and cash in on incredibly useful travel rewards. Thanks to frequent flyer credit cards, consumers everywhere are enjoying discounted (or even free) airline tickets, as well as traveler's insurance, help with car rental services, and much more.

You know you want to get in on the action soon, but with all the choices available on the market today, it's tough to know how to zero in on exactly the right credit rewards program for you. However, if you know specifically what to look for ahead of time, it's much easier to make a smart, informed decision that will be sure to deliver the type of benefits you're looking to receive from your card.

Balance the Benefits Against the Expenses

All airline miles cards are going to come attached with a unique set of benefits. These are going to include not only your free points earned toward airline mileage, but also other perks such as 24-hour concierge services, valuable insurance programs, and potential discounts on everything from hotel accommodations to car rental services. Some cards even offer you the opportunity to earn double or triple points on specific types of travel purchases.

However, it's important to remember that each airline card is going to come along with a package of fees as well. Don't forget to take into consideration each card's annual interest rate and annual percentage fee when making your decision. Also make sure you check the card's terms of service. Do you need to spend a certain amount annually on your card to really get the most of it? What other kinds of restrictions come along with the program? Weigh these points against the benefits carefully and you'll be better able to determine which card best fits your lifestyle and spending habits.

Examine Your Traveling Habits

When it comes to the way you travel, what are your regular habits? Is there a specific airline you prefer to fly with or do you typically opt for whichever airline has the best rates and flight schedule at the time? If you stick to just one particular airline, check and see which frequent flyer card programs that airline offers and consider those first. If you prefer to keep your options open, consider applying for a rewards card through a bank instead. Bank-sponsored reward programs offer a much greater degree of flexibility when it comes to cashing in your earned points if this is the way you travel.

You also want to take a look at how frequently you travel. Before ultimately filling out an airline miles credit application, do the math on how long it would take you to earn enough airline points to be able to fund your next trip through your current credit use. Also consider the following questions. Do the miles have expiration dates? How many miles do you need to accumulate before they're eligible for redemption in the first place? Will you be able to transfer the miles to someone else if needed or desired? Can you redeem them on items other than air tickets - gift cards, restaurant visits, and so forth? Knowing the answers to these questions will further help you determine whether or not a particular credit program is right for you.

Ultimately speaking, finding the right airline miles credit card for you is all about research, research, research. The more in the know you are in regards to all the different programs out there, the better informed your decision will be. Don't be afraid to shop around until you find a deal that fits! - 39815

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