How do Credit Card Airline Miles Work?
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Posted: Thu Jan 13, 2005 3:24 pm
Post subject: How do Credit Card Airline Miles Work?
Brock
Date: 5/9/2000 3:46 pm CDT
How exactly do cards with airline miles work? Some offer 10000 miles to sign up. What does that mean when you "cash them in"? How many miles do you need to actually get a flight? For example, a flight within the continental 48? I have no knowledge on how airline miles work and would appreciate any info you could provide.
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Posted: Thu Jan 13, 2005 3:25 pm
Post subject: How do Credit Card Airline Miles Work?
Caz
Date: 5/14/2000 4:07 am CDT
Hey yall!
Airline miles are primarily for medimum to big spenders, which I would classify as anyone who spends more than $1000 on their card each month, brock. You can accrue the points just by making regular purchases each month with your credit card. Keep in mind you get points for purchases only with most cards, and if they offer a "bonus" for doing a balance transfer, its usually just a one time thing for new cardholders. The most important thing to remember when signing up for an airline cards is the interest rate and the annual fee. Typically, the annual fee is quite substantial on these types of cards, around $40-$90, however, the miles one card with Capital One is a little cheaper ($19.00 I believe, i'll have to look back). As i said earlier, the APR is usually quite a bit higher, ranging from 13.00 to 19.00%, so its important that you pay your balance off in full each month, or else you could end up spending hundreds in interest before you actually recieve the "free" airline ticket. Typically, it takes 25,000 airline miles to recieve the ticket, which will get you anywhere in the continental united states. A few cards, such as the miles one and the First Union Air miles plus card have split the United States into 3 different zones (west, central, and east). As long as your destination and origin are in the zone, then you can exchange only 18,000 of the airline miles for a plane ticket. There are so many options on airline miles card that it would take an entire article to tell you about the differences. To answer your question as to "10,000 bonus points for signing up" its a gimmick to catch new members (not saying the card is a sham, just a way of getting new customers) ... other cards have this option as well, but you usually have to do a balance transfer. Just make sure you read the terms before hand!
Take care,
NukeTulsa.
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Posted: Thu Jan 13, 2005 3:25 pm
Post subject: How do Credit Card Airline Miles Work?
Board Monitor
Date: 5/15/2000 4:04 pm CDT
Caz,
Great tips! The only thing I object to is your point about "initial sign-up bonus miles." While obviously credit card issuers use this as a marketing technique...this a great way to accumulate miles quickly. Diner's Club, for instance, offers the most bonus miles that I know of...12,000! This is about half of what is required for a ticket. The only catch is that you have to keep the card for at least one year. Never the less, such offers are quite attractive. As you mentioned, though, read terms carefully.
Also, please refer to the post I made above entitled "How many miles are required for an airline ticket..."
Hope this helps!
Regards,
Jackie Hughes
Board Monitor
CardRatings.org
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Thu Jan 13, 2005 3:24 pm
Post subject: How do Credit Card Airline Miles Work?
Brock
Date: 5/9/2000 3:46 pm CDT
How exactly do cards with airline miles work? Some offer 10000 miles to sign up. What does that mean when you "cash them in"? How many miles do you need to actually get a flight? For example, a flight within the continental 48? I have no knowledge on how airline miles work and would appreciate any info you could provide.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Thu Jan 13, 2005 3:25 pm
Post subject: How do Credit Card Airline Miles Work?
Caz
Date: 5/14/2000 4:07 am CDT
Hey yall!
Airline miles are primarily for medimum to big spenders, which I would classify as anyone who spends more than $1000 on their card each month, brock. You can accrue the points just by making regular purchases each month with your credit card. Keep in mind you get points for purchases only with most cards, and if they offer a "bonus" for doing a balance transfer, its usually just a one time thing for new cardholders. The most important thing to remember when signing up for an airline cards is the interest rate and the annual fee. Typically, the annual fee is quite substantial on these types of cards, around $40-$90, however, the miles one card with Capital One is a little cheaper ($19.00 I believe, i'll have to look back). As i said earlier, the APR is usually quite a bit higher, ranging from 13.00 to 19.00%, so its important that you pay your balance off in full each month, or else you could end up spending hundreds in interest before you actually recieve the "free" airline ticket. Typically, it takes 25,000 airline miles to recieve the ticket, which will get you anywhere in the continental united states. A few cards, such as the miles one and the First Union Air miles plus card have split the United States into 3 different zones (west, central, and east). As long as your destination and origin are in the zone, then you can exchange only 18,000 of the airline miles for a plane ticket. There are so many options on airline miles card that it would take an entire article to tell you about the differences. To answer your question as to "10,000 bonus points for signing up" its a gimmick to catch new members (not saying the card is a sham, just a way of getting new customers) ... other cards have this option as well, but you usually have to do a balance transfer. Just make sure you read the terms before hand!
Take care,
NukeTulsa.
archive
Posted: Thu Jan 13, 2005 3:25 pm
Post subject: How do Credit Card Airline Miles Work?
Board Monitor
Date: 5/15/2000 4:04 pm CDT
Caz,
Great tips! The only thing I object to is your point about "initial sign-up bonus miles." While obviously credit card issuers use this as a marketing technique...this a great way to accumulate miles quickly. Diner's Club, for instance, offers the most bonus miles that I know of...12,000! This is about half of what is required for a ticket. The only catch is that you have to keep the card for at least one year. Never the less, such offers are quite attractive. As you mentioned, though, read terms carefully.
Also, please refer to the post I made above entitled "How many miles are required for an airline ticket..."
Hope this helps!
Regards,
Jackie Hughes
Board Monitor
CardRatings.org
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 5:17 PM
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