Tag Archives: airline credit card

Is An Airline Credit Card Right For You?

You may have heard someone say that they have the best airline card available. This however does not mean it will be the best one for you. To find the perfect airline credit card for you there are a few things you must look at before deciding which card is the one that suits you best.. You will need to not only look at the airline cards and what they have to offer but also at your spending habits and of course… your traveling habits.

The most important thing is the applicable interest rates of the airlines credit card that you want to apply for. Most airline cards have higher interest rates than ones without any type of rewards program. If you usually carry a balance on your credit card from one month to the next then an airline credit card may not be right for you. If you still wish to apply and gain the benefits that come with an airline card then you should be sure to choose one with the lowest interest rate.

Some airline cards offer you points for every dollar spent while others only give you points if you purchase at certain stores or make certain purchases. If you only get points for shopping at certain stores and they are not ones you normally use, then the card will be worthless to you. The same goes for which airline you normally use. Some airline cards are only for one airline, if you do not use that airline or seldom use it, then you will not be accumulating points that you can redeem and use.

There are also restrictions placed on airline cards, such as how many points you can receive in a year and many have expiration dates on the points earned. You could be saving up thousands of points and they may expire before you ever get to use them.

Now look at your overall purchases in one year that you place on your credit card. If you normally only spend $15,000 with your credit card but you need to spend $20,000 to receive a free trip with your earned points then the airline card will not be the one for you, unless you wish to spend thousands more to reap the rewards. Remember, bundled into paying off your debt you will also be paying higher finance charges and annual fees and you may never get that free trip.

If you travel quite a bit then airline cards are well worth your time to check into, however if you only travel a couple of times per year it may not be worth the higher interest rates, higher finance charges and annual fees that come along with an airlines credit card. Some companies offer extra incentives such as a free companion ticket, but if you normally travel by yourself then this offer is one you will not need.

There are some airline credit cards than in some cases will allow you an upgrade if you travel a lot. This can give you the luxury of first class but you may find out that you will receive more points with an airlines credit card that does not give upgrades.