Air Miles Credit Cards | August 10

Part 3: How to Use Air Miles Credit Cards

ONCE you've found the perfect travelling companion for you - the one that earns you rewards on your spending, saves you money on your trips and fits neatly into your wallet - you'll want to make sure you're really making it work for you and your pocket!

In this section, you'll find out how to really make the most of your air miles credit card - and if you're still looking for your perfect card, simply compare air miles credit cards here.

Make the most of your air mile credit card...

• Earn as many air miles as you can
  When you become an air mile credit card holder and a frequent flyer member many ways and opportunities to earn air miles will open up to you.
  
  Firstly, you'll be able to earn air miles on all your air mile credit card spending. So whenever you pay for goods or services with the card, you'll be awarded a number of air miles for each pound spent.
  
  The more you spend on the card, the more air miles you will earn. So by switching all your everyday purchases to your air mile credit card, you'll really start to clock-up the miles and be well on your way to claiming your first travel reward!
  
  To really benefit the most from an air miles credit card, the best way to use it is to switch all the purchases you buy already - perhaps with your debit card or cash - to your air miles credit card.
  
  Secondly, as a frequent flyer member you'll also often be able to earn air miles for the distance you fly with the airline. So remember to claim any air miles whenever you fly with the airline and their airline partners.
  
  Remember, you may also be able to earn additional air miles when you spend money with the airline's partners - this could be hotel chains, travel operators, car rental providers and more - check out the airline's website to find all the companies you’ll be able to earn additional air miles with.
  
  Thirdly, if you shop at Tesco and collect Clubcard points - did you know you can exchange your points for air miles with a number of different air mile schemes? Current exchange partners include British Airways and AirMiles.



• Make sure to collect any bonus air miles
  Many air mile credit cards offer bonus miles when you first become a cardholder as a joining incentive.
  
  However, bonus miles usually include a condition of sale in order to receive the air miles. This condition of sale usually requires you to make your first card purchase within a set amount of time to qualify for the bonus air miles.
  
  The qualifying window-period is usually around 30 to 90 days - but make sure you check the air mile credit card details and buy something with your card in the time period.
  
  There is rarely, if ever, a 'minimum-spend' amount for the qualifying purchase - so you can always pop to the shop and buy a packet of Rolos to get your bonus air miles!
  
  Bonus miles are well worth picking up as they can often be enough for your first free flight!



• Spread your potential
  There are ways friends and family members can help to you clock-up a few extra air miles too.
  
  One way is simply to buy airline tickets for your friends or family with your air miles credit card - and then use their cash to repay the card balance.
  
  Another way, although not for everyone, is to get an additional card for your partner or family member. This way, all their everyday spending will be helping to earn even more air miles towards free travel rewards you can share.

Things to watch out for...

• Make sure to get your air miles for free...
  Earning points or air miles on your credit card spending is a great way to save money and enjoy free rewards.
  
  However, to be really getting these rewards for free you need to repay all your air mile credit card spending each month.
  
  The interest rates charged on any credit card will always outweigh the money you save by earning points or air miles on your spending.
  
  Spend freely but budget your income and repay diligently! One way to keep on top of your repayments is to set up a direct debit to repay the full amount on your statement each month. Alternatively, you can set up Internet banking to keep abreast of your spending and payments.



• Transactions that won't earn you air miles, might cost you too
  Not all card transactions will earn you air miles. Cash transactions and balance transfers will never be awarded with miles.
  
  Not only this, but cash transactions often carry higher interest rates and handling fees which could offset the money you are saving by using an air miles credit card.
  
  It's always advised, if you can, to use a debit card for accessing cash. Cash transactions cover ATM withdrawals as well as 'cash back' at the supermarket, buying foreign currency or traveller's cheques and gambling transactions.
  
  Balance transfers are another sticky point when it comes to reward based credit cards.
  
  Even if your air miles credit card offers a great 0% balance transfer deal, it's important to remember that you may need to repay your balance transfer first before using your card for new purchases to earn air miles.
  
  The reason this could be the case is the way card issuers will usually allocate your payments to your cheapest rate balances first. So any new purchases could become trapped behind a cheaper balance transfer.
  
  The best alternative is to get a separate 0% balance transfer credit card for any outstanding card debts you want to get on top of, and then use your air miles credit card for earning air miles on new purchases.

Air miles credit cards