How do Airline Credit Cards Work?
There are a plethora of credit cards available, so how do airline credit cards work? Don’t worry, we’ll break down the top ways so you can make the best choices for your financial health!
This post is about how do airline credit cards work.
Let’s dive into the top 5 reasons on how do airline credit cards work:
1. Earning Miles or Points
Companies like to incentivize and draw people in by providing generous sign-up bonuses. For example, if you spend a certain amount (usually ~$2,000-3000) in the first 3 months, you might get 75,000 miles or however many miles the company wants to give you. These can be miles or points.
Another way to draw people in is to offer certain multipliers for different categories, like dining, travel, gas, etc. For example, you might get 3x the points for every $1 you spend on dining. So instead of just 50 points for the $50 you paid for eating out, you could get 150 points instead.
2. Benefits and Perks
There are a lot of different benefits that come with credit cards. With airline credit cards, the benefits likely will be related to travel perks, like free/discounted checked bags, priority boarding, lounge access, and other flight-related discounts.
3. Foreign Transaction Fees
Because airlines are centered around traveling, it is quite common that they will waive foreign transaction fees. This is especially helpful when traveling abroad and making purchases. There are some credit cards that charge per transaction; however, many airline credit cards do not.
4. Annual Fees
Similar to travel credit cards, many airline credit cards also charge annual fees. The amount will vary, and this largely depends on the benefits and perks offered. Entry-level cards may have low or no fees; however, the benefits are usually proportional to the annual fees paid. The higher the annual fee, the more benefits and monetary value of said benefits.
5. Redemption Options
There are a number of ways to redeem your points/miles. Typically, your points/miles can be redeemed for flights or hotel stays. For those who are more travel savvy, you can find ways of transferring points to different companies (Chase to United) to get more bang for your buck! There are times when airlines will run promotions in which you can transfer your points and get more points/mileage out of them.
To reiterate, the top 5 how do airline credit cards work are:
- Earning Miles or Points
- Benefits and Perks
- Foreign Transaction Fees
- Annual Fees
- Redemption Options
There you have it! Interested in learning more about credit cards? Check this post out for credit cards with phone insurance.
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