4 Significant Things to Remember Before Opting for Airmiles Credit Cards

By PolicyBazaar
  | Published: 12 August 2020 | Last Updated On: 29 December 2020
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Air travel across the globe has grown substantially in the past few decades. This growing pattern has also led to a considerable rise in the number of credit cards that offer rewards in the form of miles for every purchase made on the cards. These could be any type of Airmiles credit cards from a standalone card issued by a bank or a card issued under a partnership between an airline and a bank.

If you hold an Airmiles credit card you will be eligible to earn some miles or points for the eligible expenditures that are made on the card. These rewards are redeemable upon reaching the benchmark set by the bank. The most common perk offered with these rewards program is the option to the conversion of the points into air miles at discounted rates or at no cost, and then use these miles to pay for any seat upgrades you might want.

But, did you know – it is not just air miles for which you can redeem your points? You can redeem the accumulated points on your Airmiles credit cards for special deals and discounts at the participating merchants that include hotel chains, restaurants, movie theatres, and much more depending on the type of card you hold. Often the Airmiles credit cards also come with various other benefits and perks such as free travel insurance, complimentary airport lounge access, global concierge service, and so on.

A common myth when it comes to using an Airmiles credit card is that it only comes in handy for the people that are frequent flyers. But, these cards can be equally beneficial for someone who falls under the occasional traveler category, as they redeem their points which have been accumulated over the course of time for discounted or absolutely free air tickets or even seat upgrades for the annual trips they take abroad. With this being said there are some critical things you should keep in mind before you go ahead and opt for an Airmiles credit card:

1. Choose a Card That Is In-line With Your Spending Habits

The travel credit cards in the market offer different types of reward points that vary from one card issuer to another. For instance, there might be a card in the market offering 4x points when it comes to spending in entertainment and dining categories, while another card might be giving out 8x points if you spend at a fixed grocery store or supermarket. Generally, the key is to opt for an Airmiles credit card via which you can accumulate the points on the loyalty program in the fastest way possible. You can do this if the card that you choose offers points on the categories that you are likely to spend in the most.  

2. Conversion Rate and Charges on Converting Points to Miles

The bucket that you have of the accumulated points on your Airmiles credit card can be converted into air miles offered by an eligible Frequent Flyer Program that can later be redeemed for various travel-related benefits. But, it is essential for you to take into consideration the rate at which this conversion is offered to you. Also, bear in mind that converting your points into miles often involves some sort of conversion fee that needs to be paid.

3. Benefits of Renewal

You should also check if you are offered any sort of bonus points or some extra miles when you pay your annual renewal fee. If you do a comparison of your costs vs. your rewards, you may come to notice that you will end up saving a huge amount all because of your bonus air miles or points upon paying your annual fee when compared to spending a large amount on your Airmiles credit card to earn as many points or miles. If you start to feel that your annual fee is nothing but a burden, you can always try and request your card provider to provide you some discount or waive it off completely if possible. The basis of the relationship that you have with your card provider, they might just agree to waive it off for you.

4. Preferred FFP (Frequent Flyer Program)

You will also be highly advised to opt for an Airmiles credit card that is linked with the FFP that is partnered with the airlines that you usually choose for your services. The same goes for the credit cards that come under a partnership with an airline program and a card provider. Make sure to always check the FFP that is linked with your Airmiles credit card and the range of perks and privileges that it offers along with its list of partner airlines.

The Bottom Line

It is important to remember that using your Airmiles credit cards in this manner is a smart way only when you can manage to pay back your dues well on time. Spending more than what your income can afford just to build up the points or miles on your card can lead you into a debt trap that can be extremely difficult to get out of.

Be sure that your spending is aligned with the budget that you have and the income that you earn. This is the best way to ensure that your vacation is nothing but good memories and not the anxiety of credit card bills racking up.