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Because of the high interest rates, it's
not a good idea to carry a balance on these types of
credit cards.
Not keen on the high price of an airline
credit card? You have lots of other choices. Hundreds
of additional air-mile cards promise to reward customers
with a free round-trip ticket that can be used on any
airline.
“Before signing up for an air-mile credit card, be sure to study the details.” "There are so many of those they're
difficult to keep up with," Petersen says.
The hook of these generic air-mile cards
is their flexibility. You earn miles toward free air
fare that can be used on any airline. They also tend
to have lower fees and lower interest rates than cards
associated with specific airlines.
The downside of generic air-mile cards
is you can't dump the miles you earn with the card into
a frequent flyer account.
"You have to earn all your miles
on the card," Theoharides says. "There's no
combining with a frequent flier account. So it takes
a little longer."
Miles on generic cards may not be good
for international destinations. Be sure to check this
out, especially if you have your heart set on a free
trip to Rome.
Some generic cards require 21-day advance
notice and Saturday night stay when you book your free
flight. So a free last-minute getaway may be out as
well.
Before signing up for an air-mile credit
card, be sure to study the details.
Where can you fly with your air miles?
Will they take you to your dream destination? Petersen
hears from people who've racked up thousands of miles
on a card only to learn it won't take them to the place
they most want to go.
"All frequent flier programs are
not created equal," Petersen says.
So decide where you'd really like to go,
and then shop around for a card and rewards program
that will get you there with the least amount of spending.
Make note of mileage requirements and
blackout dates. Be sure to check out the list of partners
for each frequent flier program. Do you already shop
at an airline partner? What kinds of bonus miles opportunities
are available? Be prepared to do some digging.
Low APR? What's
the catch?
On the credit card side you'll want to compare the interest
rate, annual fee and grace period. Some air-mile card
deals are pretty expensive. Some of the lower priced
ones may not be as good as they seem.
And there are plenty of folks out there
who should avoid air-mile cards altogether. Because
of the high interest rates, air-mile cards are not a
good choice for people who carry big balances.
If you don't spend thousands of dollars
a year on a credit card or travel frequently, it's going
to be awfully tough to earn enough miles for a reward.
"Most people don't spend $20,000
on their credit cards -- enough to get a ticket in the
first year," Detweiler says. "Most people
won't earn the maximum rewards. You have to be realistic
about how much you will earn."
Look at your financial situation, and
be realistic about how much you can afford to spend
on an air-mile card.
"No matter what they tell you in
all the fancy literature, these programs are not for
everyone," Petersen says. "If you're only
spending $1,000 a year, I wouldn't get any of these
cards. I would go out and get a fee-free one with a
low interest rate." | 
