However, new credit cards with airmiles now offer much better returns on your money, and by just doing your normal everyday spending, you'll be able to book a break in no time at all.
The points system
Although some cards offer one point per £1 and others offer only one point for every £10 you spend, this doesn't necessarily mean that the first provides a much better return than the other.
You need to work out exactly what you would need to spend to get to your desired destination to be able to accurately compare airmiles credit cards, as they all require a different number of points for each country.
Think about how you use it
If you're not a big spender, make sure you go for one that has a good introductory offer or you might never earn enough points to get off the ground.
If you're sure that you will definitely clear your balance each month, you could start paying your bills and even your mortgage with new airmiles reward credit cards - just make sure that you don't use it for anything that's considered an "instant cash transaction" such as online gambling or with some banks, even buying gift vouchers as they carry higher interest rates - check with your bank to see what is and isn't considered an instant cash transaction.
Giving your airmiles a boost
The best airmiles credit cards have great introductory offers such as up to 20,000 bonus points if you spend a certain amount within three months of opening the account, so make sure that you check out the latest offers as well as comparing the standard spending and points systems for each card.
You should also find out whether or not you can top up your airmiles with cash. Doing this means that you should be able to collect a certain number of points - enough say for a trip to Europe - and then add cash to boost your ticket to take you to America.
Avoid the interest
While some cards will also offer zero per cent on balance transfers or purchases, you need to be very careful that you never end up paying interest. Because of the high returns you get with airmiles cards, some charge as much as 39 per cent interest, so you should make sure that you have a standing order set up to pay the full balance every month - or you'll have soon paid far more in interest than your free flight is worth.
