Air Travel - Make your Air Travel Economical with Credit Cards


Mode of travel is a huge impasse for a frequent traveller who may be using any mode of travel – by road or, by air. However, the idea of flying sounds better with all those discounted airfares and credit cards offering miles.

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Earning Credits to Fly

America and credit cards need no introduction to each other. The addiction towards earning those rewards on credit cards doesn’t either.

According to Fidelity, around 55 percent of credit card holders are hooked to earning miles on airlines. One of the biggest paybacks for expectant fliers is also the cash back policy. But, earning miles and, points on credit card appeals more to a frequent flyer.

Frequent flyers often scour through different airlines and banks offering credit cards to know which of them offer maximum miles and, higher number of credits respectively. A thorough study often helps in choosing the best combination of both to avail the benefits of travelling by air.

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So, what are airline miles? They are points offered by airlines once you join their loyalty programs. Say, you choose a particular airline not just once, but to cover almost every travel thereafter, you are identified as a potentially loyal customer by the airline. Based on the number of times you avail the airline, you accumulate a particular number of miles based on your destinations. The number of miles earned indicates the number of miles you have flown already. Once a particular figure is reached, you are entitled to a free flight.

As per Frontier’s reward program, for every 20,000 miles you accumulate on your card, a free roundabout domestic ticket is rewarded. Say, one free flight is a reward you get only after making about four roundabout trips between Seattle and Miami. As per Delta’s SkyMiles charts, a free US trip can be earned if a minimum of 25,000 miles is earned.

Certain flights give awards one-way too, with as much as 12,500 miles on the card.

Some cards work for all airlines and some work for a few select ones. In case of redeeming through credit cards, it is important to remember that, the points are earned on every dollar spent. These points can be availed on flyer miles you have accumulated. However, the redemption demands that your card is paid off at the time.

Banks like Fidelity rewards you points handsomely if you open an investment account with them. Sometimes, paid miles can be earned too, by completing surveys on eRewards and eMiles.

Do Personal Loans Improve Credit?

Do banks and airlines give back something to customers for their loyalty? The same question can be perhaps rephrased differently – “If you took a personal loan for travel expenses and, you choose to pay it off in less than a year, will your credit score give you any added benefits, given that you have paid back that loan with interest?”

A high credit limit with a good credit score may ensure the entire process of applying for a personal loan for travel, easy. However, there is no one-way to learn about keeping credit high and, its utilization low. Credit utilization is essentially the ratio of credit used to number of credit provided by banks and airlines. So, earning miles on flying is indisputably connected with how you manage your credit cards too.

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Sometimes, the lure of earning miles in flying can divert your attention from prudently managing your credit cards. A few people tend to apply for more credit cards with the desire to increase the number of miles in flying. One of the repercussions can be applying for a personal loan to fill in travel expenses. But then, is it advised?

Kathryn Bossler, a financial counselor from GreenPath Financial Wellness from Michigan firmly disagrees – “You shouldn’t have to pay to build your credit score. There may be other options out there outside of that.”

Applying for a loan to keep your credit up can begood idea to incorporate in your financial planning. However, if you choose to, make sure that your bills and debts are paid off on time. If your credit has taken too many hits, check out AAACreditGuide to learn about hard inquiry removal.

The idea of redeeming miles should stem from keeping the credit utilization to a minimum. It is only then, the redemption of miles comes handy whenthe travel plans and the budget is huge.


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