Are Airline Credit Cards Right for You?


by Tim Parker


There's an old adage among the people who invest their money in the stock market. Depending on who you talk to, it will sound quite different but it goes something like this: "Never trust airlines and ______" the last word depends on the specific investor. Many people say autos. Others say the movies but nearly all of them will mention airlines.

What does this have to do with airline credit cards? You'll find out but first, let's take a look at what an airline credit card is. With the large and diverse offerings of credit cards, one can find a card with just about any perk imaginable but the airline credit card was one of the first rewards-style cards on the market.

These cards give you rewards points for your purchases in the form of discounts on airline tickets. Some card issuers will give you frequent flyer miles for the airline of your choice while others, will give you a gift certificate (or card) or even offer to book your flight for you.

Sometimes your airline credit card gives you access to the airline lounge that you see inside of the airport. Often these lounges have comfortable and quiet seating, internet access, and several other amenities that will make your travel experience more enjoyable. Additionally, you will qualify for discounted rates at participating hotels, car rental companies, and restaurants.

Just like most credit cards on the market, the better your credit, the better your card interest rate will be. So remember that every time you pay your bills on time, it may earn you a lower interest rate on your next credit card. If you do your homework, you are sure to find a card that will give you bonus points just for opening the card. With very minimal research, one can find 5,000 or more bonus points being offered to new card holders..

Do you want rewards for airline miles or dollars? Some cards will offer you rewards for the mileage you travel. Similar to air miles or other airline rewards, if you travel long distances, this will often be the best option for you. The other option is to be rewarded for each dollar you charge to your credit card. This is similar to how most reward cards work.

When you pick a rewards card, it's important to do your research and think about which card is right for you. If you don't do a lot of traveling, a more general rewards card from one of the major credit card companies may be more beneficial to you.

Never invest in the airlines, right? Here's why it may be important to you. Some experts advise never taking out a rewards card that is tied solely to frequent flyer miles because most of the airlines always seem to be a few days away from going bankrupt. Additionally, changes or total elimination of the frequent flyer programs could leave you without any rewards.

Instead, look at the rewards cards that come from the well known credit card companies - the ones who have a large selection of travel rewards. By doing this, you're almost sure to keep those rewards points available to you.




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