Is a Frequent Flyer Credit Card Right For Me?
Frequent flyer cards are a popular option among many people who like to be able to earn air miles without actually having to fly. Air miles, or frequent flyer miles as they are sometimes called, are a benefit given to travellers who have registered with airlines, and allow the traveler to accumulate them in order to reap benefits.
The most well-known benefit of air miles is being able to earn enough to book free flights, but there are other ways they can be redeemed, including preferential luggage retrieval, and free or discounted upgrades for seating; for example, from coach to business class or first class. Airlines and banks typically have partnerships with major credit card issuers like Visa, MasterCard or Amex to offer frequent flyer cards which grant the cardholder the advantage of using almost any purchase of goods or services to accumulate extra air miles.
One Size Doesn't Fit All
When considering getting a frequent flyer credit card, keep in mind that they are the right option for many, but not for all. For people who travel often for business or pleasure, they are a great way to gain extra air miles, especially if the card would be used towards purchasing hotel rooms or renting a car, since some hotel chains and car rental services offer additional bonus miles when a card is used for those purposes.
Are You a Frequent Flyer?
Your travel and spending habits can also help you decide if a card is the right one for you. When travelling, if you tend to stick to one airline, for example, Qantas, then a Qantas credit card can be great since you will quickly accumulate air miles. However, some people tend to use whichever airline is offering the best deal for a given date, or would use airlines other than Qantas on international flights, so for those people, a frequent flyer card would give them points that they would not necessarily redeem quickly, and would not offset the fees of the airline credit card. Since air miles usually accumulate based on how much is spent using the airline credit card, a person who often uses cash for transactions, or who uses various credit cards, may not be able to reap the full benefits either.Factor in Annual Fees and Interest Rates
The annual fees and interest rates of frequent flyer credit cards are another factor in making a decision on whether to get one of these cards. Some, but not all, have fees and interest rates which are higher than other credit cards which do not offer any buyer rewards. Cards offering the best returns in terms of air miles or points per dollar spent generally will have a higher annual fee, but if someone is a frequent traveller and tends to charge most purchases to their credit card, the money saved by quickly accumulating air miles would more than offset the higher fees and rates.