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Is an Airline Rewards Card Worth It? |
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by: Debbie Dragon
Most of us would love to take our dream vacation. For some that is traveling to the tropics like Hawaii or the Caribbean, for others it might be an Alaskan cruise and for still others it might be to a safari in Africa. No matter what your idea of the dream vacation is you most likely will need to fly to get there.
If you are considering such a trip you may be looking into airfare options and debating as to whether or not getting an airlines reward credit card may be worth it. Here is some information you will want to know before making your decision.
When it comes right down to it, for most people an airlines reward card may not be the way to go. While their offers may seem tempting, you really need to take a close look at all of the fine print and details. Many cards do offer great start up bonuses. These might include extra air miles or a free ticket for a companion flight. The question is, are these offers along with the regular rewards enough to make it worth it?
There are several pitfalls to airline reward credit cards. To start with both the credit card company and the airline, at any time, can change the rules and in the past they have. They can decide to change values of your points, requiring you to earn more miles to be able to redeem a ticket. They can also set blackout dates, making it difficult to redeem your miles once you have earned them. Even more frustrating, many have started to tack on additional fees for you to use your tickets.
Redeeming miles in and of itself has also been a challenge for card holders. Many times, especially if you are booking during high travel times like Spring Break, Thanksgiving, Christmas, etc. you will need to book your free ticket almost a year in advance. Even then there is no guarantee you will be able to redeem your points at all. Only so many reward seats are available on each flight and they are first come first serve. As an added frustration, when you are able to make a reservation using your points, it is becoming common for the companies to charge you a booking fee.
Other things to consider are the terms of the credit card. Most airline travel cards come with a hefty annual fee. On top of that interest rates tend to be quite high on airline cards. If you pay off your card every month this will not affect you, but if you carry a balance it could mean high interest charges.
For most people, the value you get out of the card is simply not worth it. For some, however, it can be. If you are big spender and a frequent flyer you may find that the benefits do outweigh the fees. You will certainly want to take a close look and make sure you are coming out ahead.
For most of the population you may be better off with a different type of credit card. Many people are now looking to earn their airfare in other ways. Instead of getting an airline credit card you can look for an awards credit card that pays you cash back. Cash out your reward when you are ready to purchase your airline tickets. Most cash reward cards do not come with fees and there are no block out days to get your money. Usually you can redeem your cash at any time. Watch for airline sales and you most likely will end up with a much better deal than using an airlines reward card.
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Credit Card Articles > Rewards Cards > Is an Airline Rewards Card Worth It?
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