You may be considering looking into applying for a miles credit card, however you are also wondering how they work. The idea behind a miles card is quite simple. Many credit card companies wanted to give their customers better incentives to apply and carry their credit card, so they joined with different airlines to offer free travel miles etc. to give them more for their spending. This means that their customers that travel a lot could earn mileage points for flights they made and then after so many points were accumulated they could travel free to certain destinations.
Okay, now you are still wondering what all that means. Well, to put it simply, a miles card gives you points for every dollar or maybe two dollars that you charge on your miles credit card. These miles when you have accumulated enough can be converted into hotel stays, car rentals, flights, etc… that the miles credit cards allows. This is great for people that travel all the time.
Since today there are many different miles credit cards available you will have to pay close attention to the incentives and of course the interest rate, annual fees, and finance charges that each miles card offers to ensure you choose the one that fits your lifestyle and gives you the most in rewards.
You will find that one miles card will offer no annual fees, 5000 bonus miles with your first purchase using the miles card, a zero percent APR for the first 12 months and one mile for every dollar that you charge. They even go so far as to allow balance transfers and after the first 12 months, the APR is at 10.99 percent. This ARP may change however due to the other changes throughout the year. Some miles credit cards can be used for any airline, any seat you desire, and no blackout dates. This is a great one if you can choose your own airline. However, this type of miles card is only given to people with an excellent credit rating.
You will also find that a miles card is offered in Bronze, Platinum and Gold. Each card offered varies on what their incentives are for bonus miles. A Bronze miles card may offer 5000 bonus miles with your first charge with one mile given for every two dollars you charge. A Platinum miles card may offer 20,000 bonus miles for every dollar spent with your first charge.
Just remember, to look at what airlines you can use, what hotels are offered, even the car rental companies that are included in the incentive program for the miles card you have chosen. Every miles card will be different according to which company offers the credit.
The major complaint centered on a miles card is the high interest rate. The normal rate after the first 12 months of 0% APR is usually around 17.49% with most major miles credit cards.