Miles Credit Cards Getting The Most Out Of A Frequent Flyer Credit Card

A

irline miles credit cards       card is the bonus mile offering.
are among the most popular      Who wouldn't want 15,000 miles?
types of rewards credit         In addition to the substantial
cards. However, only a handful of     free miles offered, the average
frequent flyer miles credit cards     airline credit card also waives
provide great rewards and value.      the annual fee during the first
The reason for this is quite          year. The combination of free
simple: most airline specific         miles and a no fee first year
credit cards charge astronomical      draws in many consumers. However,
annual fees and high interest         the initial perks are generally
rates. Now, if you travel often       offset by the money it will cost
and spend more than $10,000 a         to maintain your credit card
year, just about any airline          after the first year. First, the
credit card will earn you miles.      average annual fee charged by
However, if you want to get free      these credit cards is $75. Ouch.
miles, airline flexibility, and       And the average interest rate?
save money on interest and annual     More than 17%. Sure, you get a
fees, there are only four miles       lot of miles upfront, but is it
credit cards you should consider:     really worth paying 5% more in
The Miles Card from Discover, The     interest and a substantial annual
Value Miles Platinum Visa Card,       fee? Not when there are much
American Express Blue Sky and the     better offers available.
Citi PremierPass. Here, we will
examine all four cards. First,        The Miles Card from Discover is a
however, we will examine the          no annual fee airline rewards
average airline specific credit       card that offers a 0% interest
card.                                 rate for 1 year, a low long term
                                      interest rate, and the
The lure of the "average" airline     opportunity to earn 1 mile for
specific frequent flyer credit        every dollar spent. The miles you

earn can be redeemed on any           although the Value Miles Card
airline with no blackout dates.       does not offer any free miles,
Plus, you get 5,000 bonus miles       you can get a ticket to fly
when you make your first              anywhere in the continental U.S.
purchase. The interest rate on        for only 24,000 miles. This is
this credit card is over 6% less      5,000 to 10,000 miles less than
than that of the "average"            the "average miles card" charges
frequent flyer card. Plus, you        to get a free ticket. You don't
pay no interest on purchases or       get free miles, but your miles do
balance transfers for up to 1         have more value.
year. Although you get 10,000
less miles, you'll probably end       The Citi PremierPass offers two
up with a lot more money to spend     levels of airline rewards. The
on traveling with this card than      regular PremierPass MasterCard
you would with the "average miles     offers 5,000 free miles, charges
card."                                no annual fee, and offers an
                                      interest rate that is 4.25% lower
The Chase Value Miles credit card     than the "average miles card."
is a no annual fee airline            Additionally, you can earn 1
rewards card that allows you to       flightpoint for every three miles
fly on any airline with no            you fly on any airline with a
blackout dates. They do not give      ticket purchased with your card.
away free miles, but they also
don't charge an annual fee or a       The Citi PremierPass also offers
high interest rate. Like the          an elite level. Now, there is an
Miles Card, the Value Miles card      annual fee of $75. However, you
offers a 0% interest rate for up      receive 15,000 bonus miles, earn
to 1 year and offers an interest      1 flightpoint for every single
rate that is 5.5% lower than than     mile flown, and double miles on
"average miles card." And,            everyday purchases. The interest

rate is still 4.25% less than the     than the "average miles card."
"average miles card," plus, this
card offers a 0% interest rate        As you can see, airline credit
for up 1 year.                        cards offer a variety of perks at
                                      a variety of prices. For some, an
The BlueSky credit card from          "average miles credit card" with
American Express does not try to      an annual fee of $75 and an
lure you in with free miles.          interest rate over 17% might
Instead, they offer value. For        provide the best overall value.
every 7500 points earned, you         However, most credit card users
receive $100 that can be used for     will end up paying more money in
any travel expense, including car     interest and fees on their credit
rentals, hotels, online travel        card than they would if they
sites, and cruises. The value         simply paid for their ticket in
here is that every point you earn     cash. The real value in frequent
is worth 33% more than than the       flyer credit cards can be found
average point. Plus, you can use      with the general miles credit
your rewards for all of your          cards that charge no fees, offer
travel expenses, not just airline     low interest rates, and offer
tickets. Additionally, this card      more travel flexibility.
offers a 0% interest rate for 6
months, charges no annual fee,        2006, Credit Card Depot Inc.
and offers a low long term

interest rate that is 5% lower

About the Author:

The author is president and CEO of Credit Card Depot Inc. His website, http://www.credit-card-depot.com, features detailed information and links to applications for every frequent flyer credit card mentioned in this article as well as over 70 other credit card offers. To apply for a credit card online, visit http://www.credit-card-depot.com