Lifestyle Factors That Affect Frequent Flyer Cards
While there are a lot of reports condemning or praising the value of frequent flyer rewards cards, many forget to consider one of the most important factors in earning rewards: the cardholder. How we use our credit cards plays a big part in the number of points earned or how many rewards we can redeem and will work for or against different offers.
When not considered, there is a risk of lifestyles and cards not matching up that could lead to a frustrating and expensive credit card or, in extreme case, credit card debt.
As well as looking at the interest rate, annual fee and other card features, things like how a card is used, when you fly and what kind of card habits you currently have should also be factored in to help you figure out if one of these rewards cards is right for you.
Credit Card Use
How a credit card is used will have a huge impact on the value of any point-based rewards program because it directly affects the point balance.
A cardholder who rarely uses their credit card will have fewer opportunities to earn rewards, while someone that spends a lot then carries a balance may also miss out with many current cards that do not offer rewards when there is a balance on the card.
On the other hand, people who use credit for convenience and regularly pay off the balance, will find that they can earn more frequent flyer points without changing their card use.
Infrequent Flyers
While credit card use is the main element considered in many of the investigations into the value of these kinds of cards, how often someone flies can also have a huge impact.
Frequent flyer programs currently offer points to people that book or fly with the relevant airline or airlines, so if you book with a credit card you will end up earning more points.
For example, someone who always flies with Qantas might find that the ANZ Frequent Flyer card or the HSBC Platinum Qantas card add even more value to their Qantas Frequent Flyer membership.
A person who always flies with Virgin or does more international travel, however, may want to consider a Virgin Money rewards card or something like the Citibank Emirates Platinum card.
Card Habits And Opportunities
It is a good idea to be aware of current credit card habits when choosing a frequent flyer card, but it is just as important to look at different opportunities to earn more points.
These programs often have a number of partners involved and most offer more points per dollar for favouring them while shopping.
No one should have to drastically change the way they use their credit cards in order to get more points from rewards, but it is a good idea to be aware of both card features and lifestyle factors so that you know how much value you can get for the card.