Airline credit cards seem, on the surface, to be a great way to earn free airline miles. This can be the case, however, it makes sense to read the fine print and do a bit of mathematical calculation before signing up for airline credit cards. Airline credit cards typically have a higher interest rate than non airline credit cards and many airline credit cards also require an annual fee for membership.
While all airline credit cards differ in the way in which they accrue fee air miles, almost all of them give the card holder a percentage of the purchase amount back in air miles. The percentage varies according to the program, but the purchase amount that is applied towards air miles on average airline credit cards is somewhere around one and one half percent.
When you consider that many airline credit cards also charge more (typically around six percent more) in interest on average than do non airline credit cards, it becomes obvious that the extra money that has been spent on interest will not cover the gains made in free air miles.
In many cases, the amount of money lost due to finance charges on airline credit cards is much more than the amount gained in free air miles. In addition, many airline credit cards charge an annual membership fee which must be considered on top of other finance charges.
There are other issues that those who are considering applying for airline credit cards should consider. First, it is important to remember that many airlines place upper limits on the number of free air miles that anyone can earn in a particular year. If the card holder goes over the limit, then he or she is paying the higher interest rate when using his or her airline credit cards without receiving any compensation in the form of free air miles.
Additionally, many airlines are making it more and more difficult to use free air miles. Blackout periods and destinations are increasingly common, so even if the cardholder is able to earn a lot of free air miles from his or her airline credit cards, it may not be possible to use the miles in the manner that the card holder desires.
Airline credit cards can be helpful for those who fly frequently and pay off all of their balances monthly. However, for many people, airline credit cards do not make sense and they are better served by traditional credit cards.
About the Author:
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning the
Airline Credit Cards, including assistance with
Free Frequent Flyer Miles. Get the information you are seeking now by visiting find-cards-now.com.
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