How do rewards miles work

Paying attention to these details can help you optimize your rewards so that you can get the most out of the benefits your credit card offers. If you don't think you'll redeem earned travel rewards for airline tickets or hotel stays frequently enough to justify any annual fees involved, opt for the flexibility of a cash back card; you may earn a little less in terms of total value, but you will probably be able to enjoy full use of the rewards.

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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Cash Back Cards. Credit Cards Cash-Back Cards. Cash Back vs. Airline Miles: An Overview Cash back cards and airline miles cards are two types of rewards credit cards. Key Takeaways Cash back refers to a credit card benefit that refunds the cardholder's account a small percentage of the sum spent on purchases.

With airline miles cards, you accrue miles or points with each purchase, good for travel on either a specific airline or your choice of carriers. In choosing between cash back and airline miles, think about what you want to achieve with your card spending—cash in hand or earning enough miles to redeem for travel. Before choosing a card, it's important to consider if you will earn enough in terms of cash back, points or miles to justify any annual fees. For cards with annual fees, look beyond any one-time bonus or first year annual fee waiver and calculate how much rewards value you will likely derive year after year with your typical spending patterns.

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You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. If you can't find a low-cost flight through your primary airline, consider searching with some of their partner airlines. You may be able to use your miles to book with them instead. Research transfer partners.

If you're earning transferable points, make sure to research flight prices with each transfer partner before booking your flight. This will allow you to find the lowest price, and then you can transfer your points to that airline and book. Choosing the right airline credit card for you will depend on your spending, travel habits, and travel goals.

You want to be able to earn credit card miles quickly, but you also want to make sure the miles you're earning can be redeemed for the travel you have planned. It helps to have a specific travel goal in mind. That way you can work toward earning miles for that trip. The first decision you need to make is whether you want a co-branded airline credit card or generic travel credit card that will earn points you can transfer to a number of different airlines.

If you fly with a specific airline more than a few times per year, it's often worth it to get that airline's credit card so you can earn frequent flyer miles at a higher rate. You might still want to get a generic travel credit card to use for travel purchases outside of that airline. Other factors to consider are the card's travel perks. These can include a sign-up bonus, benefits like travel protection and rental car insurance, and luxury passes like Global Entry, TSA PreCheck, and airport lounge passes.

You'll also have to decide if you're willing to pay an annual fee for additional benefits or if you'd prefer a travel credit card with no annual fee. Keep in mind that a rewards card might come with a hefty annual fee, but that's often offset with a statement credit and other perks. If you're not willing to pay an annual fee, though, your options will be limited. Finally, pay attention to credit score requirements. A good airline card will usually, though not always, require good credit.

Ultimately, choosing the right credit card is a personal decision that only you can make. With a little planning, you'll be earning free flights with an airline card in no time. On Bank of America's Secure Website. Unlimited 1. After the intro APR ends, Highlights: Earn unlimited 1. That means you could earn up to 2. Contactless Cards - The security of a chip card, with the convenience of a tap This online only offer may not be available if you leave this page or if you visit a Bank of America financial center.

You can take advantage of this offer when you apply now. The top travel rewards credit cards pack in lucrative perks, including some with no annual fees, big bonuses, and rich rewards. Elizabeth is a personal finance writer specializing in credit cards, debt repayment, and small business.

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How much are credit card miles worth? How many credit card miles do you need for a free flight? Which credit cards earn miles? How to earn airline miles with a credit card How to redeem credit card miles to travel The best credit cards for airline miles. What are credit card miles? Savings Accounts. Home Equity. Invest with a J. Morgan Advisor. Online Investing with J. Chase for Business. Commercial Banking. See all. About Chase J. Credit Card Marketplace.

How do credit card airline miles work? What are credit card airline miles? Which types of credit cards offer airline miles? There are two main types of credit cards that offer airline miles: Travel credit cards offer miles the same way that other cards may offer points. The miles can be redeemed for travel with many different airlines, cruise operators and travel companies — as well as retailers and other merchants.

Co-branded airline credit cards offer miles for use with a specific airline. In some cases, the miles can be redeemed for non-travel items like gift cards or merchandise options. How do I get credit card airline miles? Credit cards offering airline miles may provide mileage rewards when you: Spend money on the card: Mileage rewards are tied to purchase categories — generally, you can accelerate your earning by making travel-related purchases.

Some cardmembers may also earn rewards in some travel-related categories. Sign up for a new card: New cardmember bonuses, often referred to as sign-up bonuses, are common with travel credit cards. For example, new cardmembers could receive 20, bonus miles. To receive this kind of bonus mileage award, you'll usually have to spend a certain amount on the card in all spending categories within a certain timeframe.