Air Miles Credit Cards

How to choose an air miles credit card...

Despite sounding very specific from their title, air mile credit cards actually offer a range of services aside from free air miles. This makes them more versatile and therefore more attractive to a wider range of people.

These cards are good for:

Despite their increased versatility air mile credit cards are still essentially aimed at the frequent flyer.

If you regularly make trips via plane, for business or pleasure, you could redeem some of the money you spend by using an air miles reward credit card.

If you think you fit the bill then make sure you follow two simple ChooseMoney house rules:

1. Get a card from a company you use.
   Sounds obvious, but its easy to be lured into getting a card from a rival company because they offer more miles per pound or a better APR. These things are of course important, but completely obsolete if you never fly with the company in the future.
2. Spend spend spend.
   The more you spend on your air miles credit card the more you save. But before you give the card away to a vagrant, or buy 3 Ferrari's, think about the discounts you will be making. They will never be able to compensate for hefty purchases; the key is to change your spending habits not what you spend on!
   Put typical everyday purchases like food, shopping and petrol on these cards and watch the miles soar to the horizon.

These cards are unsuitable for:

If you don't travel often then an air mile credit card will not be worth your while. You would be better of with another type of reward credit card, such as cash back or retail rewards, details of which can be found in the rewards credit card category index.

Aside from this it would also be advisable to steer clear of air mile credit cards, and any reward credit card for that matter, if you are slightly haphazard with your finances.

- Problems paying the monthly bills?
If you often struggle to make your minimum payments then reward credit cards should be given a wide berth.

You must pay off the full balance every month or the interest will eliminate any discounts you make.

It seems harsh, but that is the way credit cards make the card companies rich. The interest rates are so catastrophic that just one missed payment over the course of a year will negate any discounts you may have made.

- Poor credit history?
You are unlikely to be accepted for an air mile credit card if you have a bad credit record. There are, however, plenty of credit cards geared towards rebuilding credit score. See poor credit history credit cards.

Look for:

- The amount of air miles per pound
Look around the companies on offer to see who gives the most miles per pound of spending, but don't choose a company you won't use just because their offer looks good. List down the companies you will use first then scope out the best deal.

- Any bonuses on offer
Many companies offer generous initial incentives, including big batches of free miles when you first sign up, or when your complete your first transaction. Most companies will also give you extra discounts for using the card to book flights and holidays with the named airline or travel company.

- Airline membership
If you are a regular flyer then you will no-doubt be all too familiar with the hassle of check in, cramped seats, expensive drinks etc. To take some of the pain out of your excursion it would be well worth checking whether or not the air mile credit card you are after offers a membership program and what is included within the program.

Many companies offer benefits such as priority check in, free upgrades, VIP airport lounge access, extra air miles and other special offers. These may seem trivial while sat at home, but when you are stood in a snaking queue in a cold terminal they will seem far more inviting.

Watch out for:

- The APR
This shouldn't be an issue, as you should be repaying your balance in full every month, but if you do slip up its better to have a safety net than a pile of rubble to break your fall.

- Annual fees
This can often be spotted in an unusually high APR - an annual charge is often presented in the typical APR.

Annual charges are not standard protocol across the board so choose carefully. If you are a big spender and clock up lots of mileage they may be a small price to pay for some extra perks, but if you are only collecting a small amount they may outweigh the discounts you make.

- eBay air miles
With the unprecedented and continued growth of online auction sites and the increase in volume and range of goods available, it is little wonder that people have started to try and flog their air miles.

Be careful! The sale of air miles is usually in breach of the credit card contract and therefore invalidates the air miles.

Don't forget:

To use your points! Most air mile credit cards have a long expiry dates, but they will expire after a few years. Make sure you are aware of the time, in which, you must use up your accumulated mileage.

- Only use the card for spending
These cards are not suitable for balance transfers. Any transferred debts are a dream for credit card companies, as they will insist that you must pay of any low interest balance transfers before any spending debts.

Not only this, but you won't even get any points for the transferred cash!

Compare air miles credit cards