Credit Card Airmiles - Pros and Cons
Using a Reward Card for a Free Flight and International Travel
Dec 22, 2008
Those who perform lots of international travel could accrue sufficient credit card airmiles for a free holiday. If the money is going to be spent anyway, why not spend it on a reward card and get some free airmiles?
What Are Airmiles?
Airmiles are a scheme that allows a customer to build a bank of points based on the amount spent. The points accrued can be exchanged for airmiles. Those looking for international travel should use a credit card comparison service to identify the best airmiles plan.
Advantages of Credit Card Airmiles for Frequent-Flyers
- Frequent-flyer airmiles. If something is going to be bought, it makes sense to buy it and accrue airmiles for a free holiday or free flight;
- Discount schemes. Many airmiles credit cards offer further discounts to customers through partner stores. Check for the best deals by using a credit card comparison service;
- Free airmiles for signing up. A number of providers offer customers 10,000 airmiles for joining.
Disadvantages of Credit Card Airmiles for Frequent-Flyers
- Credit card debt. It is possible to run-up further debts by buying things that aren't needed to accrue airmiles. Only buy things that are necessary and try to settle the balance in full each month;
- Transfer fees. Many people like to transfer balances to accrue airmiles but there is often a 3% fee for doing so. It might be better to take advantage of a 0% balance transfer instead;
- Hidden charges. There are sometimes additional taxes, fees and surcharges to pay in order to claim a free flight. Check how certain plans work prior to participation;
- Not enough points. A number of customers never accrue enough points to get a free flight or free holiday. Worse still, many more get into credit card debt trying to do so.
- Loss of airmiles. Sometimes providers revoke airmiles for frequent-flyers if they aren't used within 12 months.
Anna Bowes of Chase de Vere Private Clients stated that: "If you know that you won’t be able to pay off your entire bill each month, it is much more important to choose a card with a low, or nil, rate of interest."
It sounds like a great idea getting credit card airmiles for a free flight, but lots of people over-spend to accrue the benefits. Many deals have stringent T&C's attached meaning that international travel may never be realised.
Those that found this article useful may also be interested in finding out ways to reduce credit card balances. Many credit cards signed up to prior to 6th April 2007 constitute unlawful credit card agreements meaning that the debt could be written-off.
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