An airmiles credit card is a type of reward card. When you shop with an airmiles credit card you’ll earn points based on what you spend, and these can later be put towards flights to worldwide destinations of your choice.
Which credit cards offer airmiles rewards?
There are a variety of airmiles credit cards on the market, including those from major high street banks and lenders, plus cards directly linked to particular airlines.
What are the advantages and disadvantages of airmiles credit cards?
A big advantage is that some airmiles credit cards offer free companion flights once you’ve saved up enough points for a trip so a partner or friend could travel with you at no extra cost.
You may also benefit from extras such as access to a particular airport lounge or a place in the priority boarding queue.
Certain airmiles credit card providers will also allow you to pay to top up your points useful if you haven’t accrued enough rewards to qualify for the flights you want.
In many cases you will also be able to combine frequent flyer miles with your credit card rewards so these cards often work best for those who travel a lot.
However, on the downside, you might have to pay an annual fee for your airmiles reward card.If you don’t spend enough on your airmiles card to earn plenty of free flights, it could be that the card’s benefits won’t outweigh the cost of keeping it.
Think about how much you’re likely to use an airmiles reward card and make sure it’s really worth having one before signing on the dotted line.
In addition, it’s worth being aware that you won’t always get your first choice of flight if you’re paying for your travel with airmiles. Instead, cash buyers will get first dibs on whatever is available. This means you’ll need to be flexible when booking a trip using airmiles rewards to cover your flight costs.
Above all, it’s very important that if you use an airmiles reward credit card you pay off your balance in full at the end of each month. The cost of paying interest on your spending will outweigh the advantage of earning reward points that you can swap for flights later so if you need to borrow money, a 0% purchases credit card would be a better option for you.
Are there any alternatives to airmiles credit cards I should consider?
Airmiles reward credit cards work best for people who fly frequently and fly far so if you go on lots of holidays to exotic destinations, using an airmiles reward card for your day-to-day spending and then paying it off at the end of each month could be a great idea.
On the other hand, if you don’t fly frequently and tend to stay closer to home when you go on holiday, a simple cashback credit card might be an alternative worth considering.
Cashback credit cards pay you back a proportion of what you spend, so provided you repay your balance in full each month you’ll avoid interest charges and could earn a decent amount of cashback each year.