An airlines credit card earns credits or points whenever the card is
used. Simple enough, right? Choosing the airline card will not be
difficult, if you travel frequently with a certain airline. If you use
various airlines, then it is wise to select the airline cards that give
more flexibility in its redemption and reward system. The bottom line
is that, in most instances, an airlines credit card is very well suited
for frequent business travelers.
Since selecting the right
airline card is an important task, you need to ask yourself some
preliminary questions before considering an airline credit card.
1. Which is the airline you frequently fly or prefer to fly?
The
first question is to determine your most frequented airline. If you
prefer to travel by a selected carrier, it is better to check whether
they have their own airline credit card. Since most of the airlines
today have partnered with credit card companies, the chances are that
they will have their own card. However, if you tend to fly by the
cheapest or easily available carrier at the time of your travel, you
will have to consider an airline card that offers greater flexibility.
Some cards have alliance partnerships with various airlines, offering
greater flexibility to you.
2. What is the frequency of your air travel per year?
These
cards are based on a point accumulation system with the accumulated
points expiring after a certain period. If you are not a frequent
flyer, then you may not benefit from these cards, as you will not be
accumulating enough points to earn reduced or free travel. Conversely,
if you are a frequent flyer, then ensure that the card you have chosen
has no blackout dates and no cap or limit on the number of points that
can be earned.
3. What are the benefits versus fees on the card?
In
general, airline cards have high interest rates and annual fees. It is
important to evaluate the annual fees paid versus the reduced or free
mile travel earned per year. An airlines credit card is not attractive
if the annual fee is more than what you will earn as free or reduced
travel. In addition, you could be paying hefty finance charges, if you
are not able to pay the balance on the card in full every month. In
which case, it is better to choose a credit card with a low interest
rate and no frills attached than the rewards program.
It is
important to research the number of points required to accumulate in
order to qualify for free air travel. To get maximum benefits from your
airlines card, you should also consider the following points prior to
making the choice:
4. Flexibility of the Card - Your card has to
be flexible to be used in many places including restaurants and
shopping malls. Points are added everytime you make a purchase using
the card but sometimes certain purchases add more points.
5. Cap
on Accumulated Points - Most cards have a cap on the number of points
that can be accumulated. If you are a frequent flyer, it is better to
read this fine print. Most of these cards have rewards based on
predetermined level of points.
6. Redemption Criteria - Mostly
during peak travel season, airlines and hotels do not encourage
redemption of miles or use of free or reduced travel pricing.
7.
Annual Fees - It is essential to do a cost benefit analysis on the
various airlines credit card offers before selecting one. If you do not
travel a great deal, it is better to go for a card with lower annual
fees and a modest rewards program. If you are a frequent flyer, you can
choose one with higher annual fees and benefit from the unlimited
travel rewards that are possible.
8. Other Services - Certain
cards give travel insurance and discounts on car rental and hotels.
Some also provide cash advances in emergencies. You have to compare
various cards on these to get the best one suited to your lifestyle.
Competition
in the market forces credit card and airline companies to frequently
change their Airlines card product offering. However, it is recommended
that once the right Airline card is chosen, it be not changed unless
there are huge benefits in doing so. If you consider signing up for an
Airlines credit card, it is better take informed decision based on
long-term benefit, rather than be carried away by the marketing and
promotional gimmicks of these companies.
For more information on airlines credit card offers, Robert Alan recommends that you visit CreditCardAssist.com
