Learn 7 Tips for Getting the Most out of Airline Miles
When used correctly, credit cards that allow you to accumulate miles can be fantastic financial instruments for the savvy traveler. When you have accumulated enough rewards, you can redeem them for free flights, upgrades, items, services, or cash.
As more individuals fly after being suspended by COVID-19—according to the Bureau of Transportation Statistics, air passengers surged 607% from May 2020 to May 2021–travel credit card offers are becoming more competitive.
Here are seven smart methods to maximize the miles you earn with these cards:
How to Get the Most Out of Your Airline Miles
1) Obtain the largest welcome bonus possible.
Begin at the beginning. Search for a credit card with a sizable welcome offer, then consider whether you can reach the minimum spend required to earn the bonus. New CardName discontinued holders, for example, can receive 70,000 bonus miles after spending $2,000 on the card in the first six months
In general, larger welcome bonuses need higher minimum spending, so check your budget to ensure you can meet that requirement while still paying the entire balance when the bill is due. If you do not, interest will be charged on the revolving balance.
These fees have the potential to reduce or even destroy the value of your miles. Also, don’t choose a card just based on its enticing bonus. Check that the card continues to make sense for your lifestyle. For example, if United is your favorite airline and you rarely fly Delta, applying for a Delta credit card, no matter how appealing the welcome bonus, is probably not a good choice.
2) Choose the appropriate incentive structure.
Miles will start to accumulate as you use your credit card, but not all credit cards earn rewards in the same way. Some credit cards offer flat-rate benefits, while others offer points based on where and how you use the card.
Flat-rate cards are the most straightforward because you always know how much you will accumulate when you use the card. A tiered-rewards card can make a lot of sense if you know you’ll be making a lot of transactions with high reward rates. If not, a flat-rate rewards card is likely to be a better option.
3) Pay for the group, then recoup your investment.
No matter what type of card you get, accruing miles can be difficult if you only use them for personal needs. You can increase your mileage by paying for other people’s bills as well. Assume you and a large group of pals go out to dinner, and the tab is $500.
You would get 1,000 miles if you used a card that earns two miles for every dollar spent. Perhaps you’re going on a trip with a large group of relatives. If you use your card that earns three points for every dollar spent, and the total is $3,500, you will receive 10,500 miles in your rewards bank. The idea is to have everyone repay you right away so you don’t end up with massive debt and have to hound your loved ones for money.
