Although there are many incentives that credit card companies offer clients to lure them into getting a card, not all the incentives are actually worth getting a credit card for. There are several short-term incentives that really donâ€™t make all that much sense. For instance, low interest rates and 0% balance transfer and purchase rates. The reason the air miles credit cards are actually worth your while is because the benefits last the life of the credit card.
Making sense of air miles credit cards
You are given a certain number of points on every purchase made on your credit card. This allows you purchases from many high street and online retailers. You can even use the points to benefit in the form of travel and hotel bookings, currency exchange and travel insurance. You can travel to different destinations using these points. Different journeys would require different number of points, some more than the other, depending on the distance being traveled, the time of the year and on the deals that are available.
Going about getting air miles
Once you sign up for a credit card that offers air miles as a reward, you are offered a certain number of points on every purchase made on your card. These points pile up and can then be used to get free air travel. Nat West, Royal Bank of Scotland, Cooperative Bank, Morgan Stanley and American Express are some of the companies that offer air miles credit cards. Some companies offer their own airline schemes.
Some credit card companies do it a bit differently, by asking you to sign up separately for the air miles scheme. This is beneficial because it means that you could earn miles by purchases made on any credit card. All you have to do is spend as you always do, using your credit card, and you will constantly earn air miles.
A lot of companies that offer air miles also offer other rewards, such as travel insurance. On the other hand, some companies do not offer any air miles scheme, but do offer an equivalent travel points scheme.
Other incentives to be aware of
A lot of banks that offer air miles cards also do offer the usual credit card incentives, and so the new cardholders will also benefit from the usually incentives and rewards, such as 0% balance transfer on purchases for up to nine months. Another incentive is a low rate of interest on transferred balances. Incentives like these will no doubt benefit you if youâ€™re looking to clear debt as well.
Be fully aware of the interest rates and balance transfer fees that you are being charged, if any. Although a lot of companies offer competitive interest rates, some are just too high to even consider so check carefully. If you think you might want to change your credit card, and need to transfer your balance, then make sure your card doesnâ€™t entail a balance transfer fees. A lot of banks these days charge a substantial fee in an effort to stop customers from transferring their balances but there are yet some banks that donâ€™t charge this fee so shop around for one such credit card company.