Credit Card Debt Relief

Friday, March 9, 2012

Airline Credit Cards For Bad Credit

Airline and travel rewards credit cards allow cardholders to earn points for every dollar spent. There are two types of airline rewards cards: airline specific and general travel rewards. Airline specific credit cards tend to offer a substantial amount of free bonus miles upon approval. However, these cards do tend to charge annual fees. General travel rewards credit cards tend to offer more value based features, such as 0% interest rates, low long term APRs, and low or no annual fees.

Visit you will find information on airline credit cards as well as links to secure online applications.

Airline Credit Card Tips

General Miles Cards are Often Better than Specific Airline Cards: Unless you live near the hub of a major airline and historically fly the same airline multiple times a year, a general airline miles card may offer you better value. With a general miles card, you can use the rewards you earn on any airline and typically without any blackout dates. Miles earned with a general card can typically be redeemed at a value of one cent per mile for any flight you choose. With an airline specific card, even those that advertise no blackout dates, there is no guarantee you can book the flight you want since you have to deal with the airline's frequent flyer booking system.

What are 25,000 Free Miles Worth?: In general, airline miles are worth about one cent a piece. Thus, 25,000 free miles are worth about $250. However, these free miles aren't entirely free. With annual fees on many airline cards hovering between $50 and $100 a year, you'll end up paying for these miles in full within the first two to four years of being a card member.

You Might Be Better Off With a Cash Back Credit Card: If you want to net the most rewards possible, you may want to consider a cash back credit card. One reason cash back credit cards are superior to most airline cards is that they lack an annual fee. For example, if you spend $8,500 on a cash back credit card, you'll earn $85 that can be spent on any flight you want. However, if you spend $8,500 on an airline credit card with an $85 annual fee, you'll have to spend $85 to earn $85 worth of rewards. Thus unless your card offers a valuable perk, like free checked bags, you may be better off earning cash instead of miles.

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