Compare Frequent Flyer Credit Card Offers

If you make a lot of purchases on your credit card every month for personal or work purposes then you should consider applying for a frequent flyer credit card that allows you to earn points while you shop. It’s easy to be enticed by a low introductory interest rate or just the appealing thought of cashing in frequent flyer points for a flight. However, cardholders should make sure that the points earned can be used for your choice of airline. Also, you should ensure that you pay off your balance every month, otherwise the interest payable will detract from the rewards, points and perks.

An Analysis of Frequent Flyer Cards

Frequent flyer credit cards can provide a great set of rewards for people who like to travel often, either for business or pleasure, and can provide access to a wide range of other special features and benefits. This type of credit card is suitable for travellers who use their credit card regularly for spending and maintain their credit card account in good order.

Traditionally, frequent flyer programs focussed on collecting points for flights, but today points can redeemed for a diverse range of rewards including hotels and resorts, car rentals and cruises, along with non-travel related products such as entertainment, leisure and financial services and retail products.

Many frequent flyer cards also have extra features such as travel, purchase and medical insurance covers, personal concierge services, extended warranty insurance and other perks. Many of these are gold and platinum level credit cards, with the associated prestigious features, and as such are designed for people with higher incomes and good credit ratings.

It’s important to select a frequent flyer loyalty program that offers real benefits, providing flights with airlines you like to travel with and to destinations you want to visit. Credit cards for frequent flyers tend to have high annual fees, so make sure you are getting value for money for the extras you are paying for, and that you will really be able to make use of them.

You should also ensure that the program suits your spending habits and lifestyle. The more you use your card, the more points you earn, so it’s important that you use your card often to get the most out of the rewards. Paying your balance in full each month also helps in getting the best out of your card – an ongoing debt on your account attracts interest, which can quickly negate the benefits of the rewards.

Different cards are linked to different frequent flyer reward programs, and have various rates of point earning. Generally, these schemes work by earning points every time you use your card for purchases and payments, earning extra points when you spend with the program’s partner companies, such as airlines, hotel chains, rental companies and retail outlets. Points are collected in your membership account and then redeemed for your choice of products and services. These programs offer online services where you can check your account and monitor your points, along with an online store where you can use your points to shop for rewards.

Each frequent flyer program has its own terms and conditions regarding points earning, redeeming, capping and expiry. Study all the small print of these rules, and any other charges and penalties, so you can enjoy the best benefits of frequent flyer rewards and maintain your membership on the program.

Three Tips for Using Frequent Flyer Credit Cards

Choose a frequent flyer program that suits you: When you sign up to a frequent flyer rewards credit card it’s essential to choose one with rewards you really want to use, airlines you like to fly with and a points earning mechanism that suits your spending habits. Check out the program’s affiliated airlines and retail partners, seeing if these are companies you are likely to shop to earn bonus points.

Spend often and earn points, but always within your financial means: You get the most out of a frequent flyer linked card if you use it often for purchases and payments. Any regular payments you make can be switched to your card, including groceries, travel and household bills, thus generating more points. It’s crucial, however, that you don’t spend beyond your means and that you can afford to meet the monthly repayments.

Pay your monthly balance in full: Following on from the previous point, always try to pay your monthly balance in full. Any ongoing balance on your account will attract interest, which can negate the benefits of the rewards scheme.

Frequent Flyer Credit Card Features to Look Out for

Points earning: Frequent flyer loyalty rewards programs offer different earn rates of points for dollars spent, and you can earn bonus points by shopping with the program’s partners.

Points redeeming: Check out all the products and services that you can enjoy as rewards on the program, making sure they really will be useful and fit in with your lifestyle.

Points capping and expiry: There may be a limit on how many points you can earn, and an expiry date may apply. Points may also be invalidated if you fail to maintain your membership or keep your credit card account in good order.

Introductory offers: Some cards offer an introductory offer of bonus points when you sign up or extra points during an initial promotional period. Make sure you can get the most out of any such deal.

Extra benefits: Many frequent flyer credit cards are gold or platinum cards with extra features such as insurance covers, special travel services and other perks.

Annual fees: While most frequent flyer credit card deals offer free membership to the rewards scheme, you may find yourself paying a relatively high annual fee. Make sure that this fee doesn’t negate the rewards; if the annual fee is paying for extra features then ensure you are likely to make use of them.

Standard credit card features: When comparing and selecting a frequent flyer credit card it is essential to take into consideration all the standard credit card features such as interest rates, balance transfers, and all other fees and charges. Presumably you’ll be using the card very often, so ensure all the standard features are working in your favour, helping you save money and earn the most frequent flyer rewards.

Sign up bonus points: It’s very common to find a card offering a large number of frequent flyer points for signing up. Obviously, look for as high a bonus as possible to maximise your rewards.