The New Airline Reward Cards |
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by: Janna Weiss
Airlines are teaming up with credit card companies to produce some really sweet deals for travelers. Are you a frequent flyer? Do you make lots of daily purchases with your credit card? If so, you might want to rethink your choice of airline reward cards. If yours is dated and doesn’t give you the miles or other perks you’re looking for, consider some of the new breed of custom airline reward cards:
AirTran Visa
Annual fee: $39
APR: 7.74 – 21.74%
Other perks: Free one-way coach ticket with your first purchase
United Visa
Annual fee: 0$ the first year, $60 thereafter
APR: 18.24%
Other perks: 21,000 bonus miles with your first purchase
American Airlines MasterCard
Annual fee: 0$ the first year, $85 thereafter
APR: 18.24%
Other perks: 20,000 AAdvantage miles after making $750 worth of purchases in first four months.
Continental MasterCard
Annual fee: $65 to $85
APR: 18.24%
Other perks: 20,000 bonus miles with first qualifying purchase.
Delta American Express
Annual fee: $0 first year, $85 thereafter
APR: 18.24%
Other perks: 15,000 bonus miles with first qualifying purchase.
Jet Blue American Express
Annual fee: $40
APR: 18.24%
Other perks: 50 True Blue points with first purchase
Obviously, some deals sound better than others. And these new cards aren’t for everyone. For example, if you’ve already got an airlines reward card with a very low interest rate, it might be best for you to rack up airline miles while making daily purchases on that card. Online travel services can help you come up with cheap plane tickets, and the low interest rate on your card would keep your monthly expenses low.
Beyond the interest rate question, there is the fact that some of these cards are hard to qualify for. If you’ve got less than stellar credit, you might be better off trying for another card, or keeping the ones you already have.
As with any other credit card, do your research before you apply. Read the terms and conditions carefully, and call for clarification on anything you don’t understand. Keep in mind that introductory periods don’t last long. Be sure you know what will happen to your APR and annual fee once the introductory period ends.
The economy has put the squeeze on airlines and credit card companies, resulting in several partnerships that benefit the airlines, the cards, and the consumer. But before you apply for these new airline reward cards, know the terms you’re agreeing to. The same economy that brought us these cards has also brought stiff penalties for late credit card payments. Speak to an agent to find out what will happen if you’re late on a payment. Follow their rules carefully, making payments on time, or early if possible. All of those perks listed above would fall flat in the face of a 32% penalty interest rate.
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