About Airline Frequent Flyer Credit Cards
Listed below are some of the more common frequently asked questions concerning airline frequent flyer credit cards:
Q: Is there an annual fee for all airline frequent flyer credit cards and, if so, why?
A: Typically there is an annual fee charged for airline frequent flyer credit cards, especially if it is issued in partnership with one of the major airlines. While most other types of credit cards, even rewards and cash back credit cards, do not have an annual fee the cost of airline frequent flyer programs is such that an annual fee must be charged for it to be profitable for the credit card issuing bank.
Q: How are miles earned on airline frequent flyer credit cards?
A: Miles are generally earned at a rate of 1 mile per dollar spent on the credit card. A notable exception is the Southwest Airlines Signature Visa, which requires the equivalent of $1.20 of credit card spending to earn a mile (but they make it much easier to earn with a threshold of an equivalence of only 16,000 miles and you can earn double mileage credit when booking flights on their internet reservation website).
Q: What happens to the miles once they are earned on the credit card?
A: The credit card issuer will transfer the miles to your frequent flyer account once per month where they will be added to miles earned from flying or using other airline partner services, such as car rental or hotel charges.
Q: Do miles earned on airline frequent flyer credit cards expire?
A: The miles do not expire any differently than those earned from other sources besides credit card spending. Check with your specific airline frequent flyer program for their specific mileage account policies. Most airline frequent flyer program allow miles in your account to not expire if you have account activity (purchase a ticket or redeem miles) at certain intervals (such as once every three years).
Q: Are airline-specific rewards credit cards better than generic mileage credit cards?
A: Airline reward credit cards issued in partnership with specific airlines like the Citi AAdvantage MasterCard or the United Mileage Plus card are not better or worse than “generic” mileage rewards credit cards such as the Chase Value Miles Platinum Visa or the Discover Miles card. Both types of frequent flyer rewards program generally earn at the same rate of 1 mile per dollar spent on the card. They differ in that the airline-specific cards provide more avenues for earning miles, with special incentives often given for charging the cost of hotel and rental car companies with whom the airlines has included in its frequent flyer loyalty program. Airline-specific programs normally have an annual fee, however, where most generic programs do not. But, if you have a strong preference for a certain carrier it is probably best to choose their card over a generic. Some of the generic programs require a ticket redemption fee once you have reached the award threshold and wish to reserve a flight, so be sure to inquire with the issuing bank. And apply at Flyercards.com
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