Airline Credit Cards seem like good value, and they promise to save you money on travel, accommodation, car hire etc, more or less anything to do with travel. However, are these cards real value, or are they more complex and complicated than they seem? It’s a question many of us wonder, and the answer is both yes and no, it all depends on what you expect out of your card and your understanding of the points system in place.

Different Credit Card Providers Have Different Systems

The different airline companies provide their own system of points, as do credit providers such as American Express and Mastercard. Most usually aren’t as good value as they seem, and you often only find out about this in fine print. Sadly, the fine print is rarely read, and if it is doesn’t mean it will be understood. To understand if you are getting a card that is good value, it is good if you can ask someone you know who has had experience with this form of rewards program.

An Example Of How They Work

Frequent flyer miles often work in this way, for example. 7,500 points on one card program may offer you $100 off your flight or hotel stay. The problem is, if your flight, hotel booking or car hire is less than $100, you lose all your points. You are essentially paying $100 for a purchase less than the actual value. There’s no way for you to be able to make up the difference, or to get your points back. If you are not a frequent traveller, then this scheme is not for you.

Things To Keep In Mind

It is important to keep in mind that these cards often have higher interest rates and annual fees. Also, they often have higher charges and penalties if you go over your limit or fail to repayment the debt owed on time. This may cause the average person to lose out, as they will not be able to get the point to claim any rewards, as well being slugged a higher rate on any of the remaining balance each month. The only way to make this system work for you is to make most of your purchases via your plastic money, and to have the card paid off in full as soon as the bill is received. Not an easy task for everyone. Now might e a good time to find out more about GE and Bankwest.

The points rise slowly, which means you need to be using your card as much as you can. Certain stores will be working in conjunction with the airline card, so you will be forced to shop at certain places. It also limits your choice of where you can stay, what airline you can fly with etc. If your card works in tandem with a high-end airline, the savings you make may not equate anything special, as you may be able to fly with a budget airline for cheaper.

Before you sign up for one of these cards, make sure you can make the repayments straight away, and know how the points system on your card works. Otherwise, you may end up with no rewards, and a high interest rate.

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