Airmiles Credit Cards
For every pound you spend on a credit card, you could be earning points towards an exotic destination. This guide tells you what you need to know.
More from Types of Credit Cards
11 October 2009
Airmiles Rewards Schemes
If you like to travel to foreign destinations by air, by using the right kind of Airmiles credit card, you could earn points to help you take your next flight for less.
For every pound you spend on an Airmiles credit card, you'll be rewarded with a number of miles which you can trade in for discounted tickets, upgrades, or even free flights. However, these rewards don't come for free - there's typically a cost involved in redeeming your points.
Airmile reward schemes are only worthwhile if you are able to pay off your monthly balance in full, otherwise you'll find that the interest you pay outweighs the reward you’ll earn. If you do manage to pay off the balance, you'll effectively be earning points whilst you spend.
What are Airmiles?
Airmiles are a type of points reward scheme - the rewards being air miles which can be converted into flights to various destinations. The miles are earned by spending on a particular card, which offers Airmiles, or a similar Airmile reward scheme.
There are several options available to you as a consumer, and it can be quite difficult to work out the actual value of the points you have earned. This guide will show you what you need to consider when choosing a new Airmile card.
What are the benefits of an Airmile Credit Card?
- First off, you need to use your card. The best way to get maximum return from holding this type of card is to use it for as many transactions as you can each month. But be sure to set up a direct debit to pay off the balance every month, or else the benefits you receive will be negated by the interest payments.
- Multiply your reward! Some cards will offer double (or more) points for money spent on certain goods or services, such as their partner's stores.
- Free flights and free (or cheaper) upgrades are the primary benefit of this card. Upper / Business / Premium Economy tickets will cost more miles than economy.
- Spend Miles and Pay. If you have a desire to head to foreign shores, but don't have enough miles accrued to get there, some schemes allow you to redeem your miles towards a flight, and then pay to make up the miles you're missing. Terms and Conditions and/or Restrictions normally apply, such as destinations, or number of miles you can redeem at the same time you pay. Some cards offer companion tickets, offering a free ticket for a partner to accompany you on a trip - however, this ticket normally comes with restrictions.
- Loyalty + Discounts. A number of cards also offer discounts at the card providers' partner stores.
What are the disadvantages of an Airmile Credit Card?
- Free flights are seldom completely free - often the customer has to pay a charge to cover applicable taxes, fees, and surcharges.
- Cost of building up enough miles to convert to a ticket - A study by Which? in 2006 found that many people have not claimed a flight simply because of the amount of money they would have needed to have spent in order to build up the miles to do so.
- Transfer Fees - Many of these types of cards offer a balance transfer interest free period, but they tend to be subject to fees. These vary from a set fee, to a percentage of the balance transfer. If you need a balance transfer card, take a look at our balance transfer tables.
- Fees. Some cards charge an annual fee, which is something you may not want to pay. Check before you apply!
