Selecting the Best Airline Credit Card
There are several ways to earn rewards in your favorite frequent flyer program. The most common approach is to earn miles every time you fly, but unless you fly long distance or frequently it is going to take a while to reach the level of a free ticket. The best way to earn miles is by using an airline credit card, where you get awarded for purchases you would have made anyways as a part of your household budget.
Frequent flyer programs usually give more options than free flights. Anything travel related can often be redeemed with the miles you have earned, including hotel stays, car rentals, and cruises.
TRAVELER
When you are faced with the decision of choosing an airline credit card, there are some important things to consider.
A generous sign up bonus is a great first step, but if you are choosing an airline that does not fly out of your local airport or have black out dates, you may end up never using the reward. If you are allowed to redeem with partner airlines your redemption options are increased substantially.
If you are not a frequent flyer and do not stay loyal to any particular airline, there is the option of a travel rewards credit card such as the Miles by Discover Card. This card includes a sign up bonus as well and the points can be redeemed for all types of travel including flights. The only problem with this type of card is that you can only earn miles through purchases made with the card. You lose the other earning opportunities, but the annual fee is lower and may be more cost effective in the long run.
The interest rate on a rewards card is typically a little higher than average. If you intend to carry a balance you may consider low interest rates over miles. Even a small increase in the rates could mean that paying for your own ticket is cheaper than a free flight through the frequent flyer program.
Selecting the Best Airline Credit Card