Frequent Flyer Credit Cards
Up, up and away with your free flights. The latest entry into the credit card world, frequent flyer credit cards let you earn points toward free flights each time you travel or shop. Sounds great, but all credit cards are not created equal. Don`t get caught circling the runway with the wrong card for your needs.
The Program
Frequent flyer cards are not just for flights. Many banks and financial institutions now offer a full function credit card offering points toward flights for every purchase. Some cards will award points only for travel related purchases and others offer points for all purchases. Yet, still others have a reward system, which includes points for each anniversary of the card`s activation, adding additional card members and transferring balances or making a specified amount of purchases within a defined period of time.
Earning Points
As mentioned above each card has different award systems. Finding the card that works best for you is really quite simple. If you travel for work a travel only card is a great way to manage your points and your business expenses. Travel only cards award points for flights on a variety of airlines, car rental and hotel reservations. Many cards can be linked to your airline specific frequent flyer cards.
Interest Rates and Fees
The economy has credit card companies vying for customers. To entice good credit worthy customers many credit card providers are offering 0% APR introductory rates; frequent flyer cards are not different. The special introductory rates come in a variety of configurations, from applicable to transferred balances only to time limits on new purchases. Review not only the length of the introductory rate but also how it will be applied. Don`t forget to check the post-introductory rate percentages.
The Extras
Many frequent flyer cards have special travel related perks. Easy check-in at the gate or online and first bag free for you and your traveling companions is just one of the goodies associated with frequent flyer credit cards. The choice to fly any airline, anytime with no blackout dates enhances the value of frequent flyer credit cards. Qualifying flights can earn double miles with some cards offering unlimited mileage accumulation and no expiration dates.
The Drawbacks
Frequent flyer credit cards do have some drawbacks and understanding those issues can change how you use your card. Some cards limit your purchasing power to flights, hotels and car rentals; other cards have limits on new purchases. Evaluating the limitations of each card is an important factor in choosing the right frequent flyer credit card. Many cards have a flat annual fee, some waive the fee the first year and others offer low annual fees without waiving the first year.
A little time doing the math will easily define the right card for you. Generally available with variable interest rates, with better rates going to customers with better credit ratings, frequent flyer credit cards can provide the business traveler with a simple and convenient travel card for all their work related travel requirements. Start your shopping experience and create your own moneysupermarket where every purchase earns you points, getting you one step closer to free flights. With unlimited points accumulations, airline choices and few or no blackout dates, the frequent flyer credit card is the business traveler`s top choice in the credit card supermarket.
Credit Card Fees
Credit card companies are always sending out offers in the mail that promise low interest rates, high credit limits, rewards programs and no hidden fees. However, the fine print usually includes a statement or two that gives credit card companies the right to change their policy at any time as long as they notify the credit card owner.
Credit cards can be helpful in times of need, but they can be financially harmful as well. The main downside to credit cards is that customers often find themselves trapped in a cycle where they are accumulating so much interest that they just cannot find the money to pay off what they owe. The most important thing to keep in mind when applying for a credit card is that credit companies do not exist to help you. They are part of a business and the primary goal of a business is to accumulate profit.
Credit card offers are often worded in such a way that they are difficult to understand for ordinary people who are not educated in finances or law. Before applying for a credit card, read through the offer as thoroughly as possible and look for answers to the question, “how is the company trying to profit from my credit card use?”
The most obvious and common way in which credit card companies profit from their customers is through interest rates. Every time you spend money with your credit card, the expenses are added to the amount of credit you have used. Each month, a specific percentage (the interest rate) of the total that you owe the credit card company is added to what you owe. So, if you spend fifty dollars on a haircut and you have a fixed interest rate of ten percent, you will owe fifty-five dollars at the end of the month. The main profit that credit card companies earn comes from your accumulating interest.
Interest rates can be fixed or variable. Fixed interest rates are always constant unless the credit card company notifies you of a change. Each month, you will accumulate the same specific rate. Variable rates change depending on the prime rate. Most variable rates are a specific percentage plus the prime rate. So, if the prime rate increases, the variable rate will increase as well. Try to find credit card offers with low, fixed interest rates.
Another method of profit utilized by credit card companies is overdraft fees. If a customer spends more than their credit card limit allows, the credit card company will charge a fee for each purchase. So, if your credit limit is full and you purchase gas for your car and coffee on your way to work, the overdraft fee will be charged twice to your account. Luckily, most credit card purchases over the limit are automatically declined at the time of purchase. However, you should definitely verify that this is the case before accepting a credit card offer.
Another source of income for credit card companies is the annual fee. Many credit card companies charge a fee every single year, regardless of how much money you owe them. The annual fee is a feature that is commonly added to the credit card contract after you have already accepted the offer. Look for credit card offers with no annual fees for at least a year and always read your incoming mail.
The best thing you can do to make a credit card work for you rather than against you is to be informed. Educate yourself about the various aspects of finances and money Saving money through credit card use is easy as long as you know what you are getting into prior to accepting an offer.