Understand what makes a good frequent flyer credit card before you get one.
This article examines what makes a good frequent flyer credit card. Now let's be clear upfront. If you are a frequent flyer of a particular airline, this article will probably not influence you in your choice of your airline credit card. But it is still important to know what features good airline credit cards offer and how to take advantage of them.
Are you allowed to earn double miles?
This is very important. Most airline credit cards charge an annual fee which ranges anywhere from $25.00 to $85.00 on average. Being able to earn double miles when you make a ticket purchase with your favourite airline will certainly help you earn faster miles and hence a faster free ticket. Most frequent flyer credit cards have versions (normally Platinum or Signature cards) that allows you to earn double miles. Some do not.
Annual Fees
Most frequent flyer credit cards charge an annual fee for the card. In fact, they are probably the most profitable type of credit cards for the issuer. Aside from the fees, frequent flyers tend to be travelling business people who spend a lot on their card. The older legacy carrier airlines tend to have higher annual fees for their affinity credit cards. It is not uncommon for them to charge a $75.00 fee for a card that allows cardholders to earn "double miles". However, the newer carriers tend to have lower annual fees on their frequent flyer credit cards. For example, the JetBlue Card from American Express has an annual fee of $45.00, yet allows you to earn double miles. The Air mexicana for example, also has an annual fee of $45.00.
Bonus Miles
This is a one-time benefit that most frequent flyer credit cards offer. You essentially get some free bonus
miles either when you are approved of the card, or when after you make your first purchase. Some cards give
a lot of bonus miles (15,000 miles), whiles others tempt with just 5,000 bonus miles.
Companion Tickets
Some frequently flyer credit cards give a free companion ticket or a companion discount certificate if you make an airline ticket purchase within a specified price range. This is, in my opinion, one of the best deals you can get with an airline credit card.
Anniversary Bonuses
These are bonuses that the card gives you each year you renewe your card. In fact, it is these bonuses that
make airline credit cards good value. Not all frequent flyer credit cards have anniversary bonuses. But let's
take a look at some of these bonuses.
Free Companion Tickets - we mentioned earlier that some airline credit cards give a free companion ticket if
you buy a ticket within a certain price range (no discount tickets). There are a couple of frequent flyer credit
cards that give a free companion ticket every year. This is of very good value if you travel frequently with a
companion. In fact, the value of this feature often more than offsets the annual fee you pay.
Free Lounge Passes - Some cards give you a one or two lounge passes every year you renew your credit card. This
will come in quite handy for the frequent flyer.
Summary
At the end of the day, most frequent flyer choose which airline to fly based on where they live and where they travel. Hence, your choice of a frequent flyer credit card really depends on which airline do you fly. However, even for a particular airline miles credit card, there are a few versions like the classic, gold or platinum card version. Use the guidelines above and choose the card that offers the best value.
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