More Information About Direct Earn Cards

There are so many frequent flyer credit card types and options available these days that it can make it difficult to understand and choose the card that matches your needs best. Even if you manage to narrow down your options, you might still be faced with having to decide whether you would prefer to go with a direct earn credit card with which points may be used directly for airline or partner rewards or a rewards card in which you have the option of transferable points.

At first glance, it might not seem like a big deal either way, but there are certain aspects of each card that might appeal to you for particular reasons. If you are a busy traveler with little extra time on your hands for inconvenience or have a focused set of businesses with whom you would prefer to redeem your frequent flyer points, you might discover a significant difference between direct earn credit cards and those with which you must transfer your points.

Freedom of Choice or a Direct Focus?

An important factor in the difference between a direct earn and a transferable points credit card may largely be the personal preference of the particular cardholder. This preference could come down to whether you are looking for more flexibility in the ways in which you can use your rewards credits or if you prefer certain rewards partners for which you will accumulate rewards specifically. If you use a certain airline and are only interested in points and rewards for that particular airline or card partners, it might behoove you to choose a direct earn card with a bit less flexibility, however; if you tend to desire a broader selection of airlines to which your points might be transferred for use, it might be wise for you to sign up for a card with transferable points.

However, using a credit card that offers more variety and choice as to how you spend your points might come at a price. With certain transferable points programs, you might find that the point ratio is not as good as you had hoped. This might mean that you’ve accumulated plenty of rewards, but they are redeemable with other partners at only a fraction of what your total is worth. For example, another airline might give you one air dollar for 100 of your points, or a particular hotel might give you one of their program rewards for every four points you’ve accumulated. And if there is any type of conversion charge, you might find yourself paying to transfer your points, which could be a downside to such a program.

What About Convenience?

Another factor to consider when weighing the differences between a direct earn and transferable points credit card might be convenience. With a direct earn card, you might find that it is easier to utilise, understand, and redeem your points. For instance, when you book a flight with Qantas or Jetstar you can input your Qantas Frequent Flyer number into the booking form. There’s no additional need to join the Qantas program and transfer points from your membership rewards card.

With transferable points credit cards, you might discover that there is a minimum balance for a transfer amount or that there is a time gap between when you make the transfer and when the points arrive or are available for use with a partner program.

This isn’t to say that one type of card may be more useful than the other, they are just different, and may be more or less helpful depending on your usage, needs, and personal preferences. If you are looking for a wider flexibility in how you redeem your rewards, a little inconvenience waiting for a transfer or determining the ratio at which you points will transfer may not be a significant factor.