Tips Before Choosing The Best Airline Miles Credit Card
In theory, it sounds really simple. I buy stuff. I earn points. I get rewards. But with the array of cards available (Discover, Chase, Visa, Mastercard, American Express, etc.) with different rewards, different point systems, and different regulations, it quickly becomes clear that it’s not so easy after all. Let’s look at the tips you should follow before choosing the best airline miles credit card. It begins with sitting down and deciding whether you really need it. Rewards and incentives are great, but a good credit score is even better. No card is worth it if you don’t know how to use it responsibly. Pay off balances every month whenever possible. Don’t max the card out. And don’t sign up for a million different cards. All these will lead to a lower credit score. Also, there’s a question of whether you’re really gaining anything in signing up for it. Let’s say the reason you got the card was to earn free airline tickets (worth about $150). Now let’s assume you were to purchase the card and run up about $500 per month. We’ll also assume there is a $5 monthly maintenance fee for being able to use the card. Finally, let’s pretend you signed up for a program where you get one point for every dollar spent, and it takes 25,000 miles to earn free tickets. The first problem is that you will have to wait 50 months to accumulate sufficient points. The second problem is that over the course of 50 months, you will have paid out $250 to earn $150 worth of tickets. See the problem? On the surface it sounds like you’re gaining something. In the long run, you could end up paying more than if you had simply bought the tickets yourself. You also must consider that what works for someone else may not work for you. You may be interested in the program that puts points towards a trip to the amusement park. Meanwhile, your parents may smile at the idea of earning money towards their retirement fund. Don’t let someone else’s opinion be the primary factor. See what’s out there. Besides the two examples above, you may also earn points towards a car, plastic surgery, college. Sometimes one size fits all. This is not one of those times. And don’t just look at the rewards; look at everything—the restrictions, the speed at which you earn stuff, hidden costs, and whatever else matters to you. Finally, once you choose the best airline miles credit card, know that you must spend time making it pay off for you. For example, keeping a constant balance on your card will negate any rewards you might earn because of the interest rates. Also, if you don’t use it, you lose it. The idea of most reward programs is pick up repeat customers.
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