A large number of major credit cards offer specialized cards, one of which is the airline credit card. This type of credit card, some of which are sponsored by an airline, provides frequent flier bonuses and a mileage program for its users. The use of airline credit cards may provide card owners many benefits, the most common of which is flying for free by accumulating airline miles.
Airline credit cards can be most beneficial to individuals who spend a lot and also travel a lot. If you are thinking of acquiring an airline credit card, you may want to choose one that is affiliated with a specific airline you typically fly with, this way you can maximize the benefits of your airline credit card.
The Different Types of Airline Credit Cards
There are several types of airline credit cards, providing credit card users options when choosing this type of card. The main types of airline credit cards are:
Air Miles
The air miles card allows its users to generate a certain number of miles for every purchase made with the card. For example, the Northwest Visa card allows card owners to earn one mile per 2$ (USD) purchase spent beyond the initial amount of 10,000$. Different credit card companies offer different schemes in earning air miles; however, the use of the air miles card revolves around the general principle that the more you use your air miles card, the more miles you earn.
Frequent Flyer Miles
Frequent Flyer Miles Cards allow its users to earn frequent flyer miles on a specific airline or an airline of your choosing, depending on the terms of the credit card. This usually means you will have to pay for your airline tickets using your credit card to earn frequent flyer miles. This type of credit card may also provide a rewards point system, allowing its users to accumulate more points every time the card is used to pay for airline tickets.
Rewards Card
Rewards cards are those that offer its users the option of earning points for all purchases made using the credit card. These points, in turn, may then be used to redeem benefits such as vacation cruises, gift certificates, discounted rates in hotels and car rental services, and maybe even free hotel accommodations. This type of card also works the same way as the air miles ? the more you spend using the card, the more points you earn, and the better rewards you can redeem.
Benefits of Airline Credit Cards
An airline credit card owner can enjoy many perks and benefit by using his airline credit card wisely. A few of these great benefits include:
? Saving cash when paying for flights
? Getting airline discounts such as miles
? Getting special offers on flights
? Availing of airline bonus and promotional schemes
? Acquiring gift certificates for major retail stores
? The option to upgrade flight tickets using the airline credit card
? Getting access to VIP airport lounge areas
? Free or discounted travel services such as hotel accommodations and car rentals
Aside from these generic benefits, airline credit card owners may also avail of other card benefits such as insurance for travel accidents, emergency assistance services, and insurance for car rentals.
These are all great benefits when using an airline credit card, however, you should always understand how the system works before jumping in and spending left and right. In choosing a card, you should also opt for one that provides the most flexible travel dates and has no expiry or limit on the miles earned. Remember, choose a card that suits your needs and one that will work best for you.
People who apply for airline credit cards today will find that the application process is fairly straightforward. They will also find that reading the details of their terms and benefits isn't very difficult for them to do. Moreover, they will educate themselves on what it is they do and don't get from their card and can even explain that information to someone else if asked. That's something that's important to credit card consumers but it wasn't always the case when it came to airline credit cards. It was through direct consumer pressure that these cards came to be so clear and easy to understand.
It used to be very difficult for people to understand the terms and benefits of their airline credit cards. Many people would get approved for a card only to discover that it couldn't be used for the airline that they were booking a flight on. Others would accumulate the necessary amount of points to be awarded with a free airline trip but they would learn that "blackout dates" inhibited them from actually using those points during any time of year when it was convenient to travel. This made people start to get really frustrated with airline credit cards. They liked the idea of using them but found that actually trying to make use of them wasn't something that was easy to do.
Customers Demanded Change
Instead of just griping about the problems that they had with this type of card offer, customers banded together and demanded that changes be made. Consumers could have chosen to deal with the airline credit card problem in other ways. They could have stopped using the cards or they could have used them with the terms that were already in place. However, they recognized that there was a way to make these cards work to their benefit if only they could figure out how. They worked with consumer groups and legislators to set guidelines for lenders.
The changes that were demanded by consumers created a different type of airline credit card. Some of the restrictions are still in place. For example, some airline credit cards still have blackout dates that restrict travel (although this is getting increasingly rare). However, what's different is that customers are aware of those restrictions in advance. When you apply for an airline card today, you can clearly see what the limitations are on those cards. You can also see what the benefits are going to be, which airlines it's going to work with and what you need to do in order to maximize your points. By demanding that airlines and lenders be clearer in the way that they present airline credit cards to consumers, customers were able to make changes that benefited them as a whole group. The result is that there are now more airline cards to choose from and customers can understand how to select the ones that are right for their needs.
Both Vincent Abrugar & Robert Alan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.