Want to save some money on your next trip? One of the easiest ways to trim expenses is by taking advantage of the free bonus miles offered by frequent flyer credit cards. It doesn't matter f you just want a quick discount or plan on saving for an expensive trip down the road. With the proper use of an airline credit card, you can knock hundreds of dollars off the price of an airline ticket.
Here, we will discuss various strategies that can be used to maximize frequent flyer rewards.
Take the bonus miles and run: This strategy is for the short term and can provide savings of up to $150 on a flight. Basically, all you have to do is apply for an airline specific credit card, such as the Delta Skymiles or American Airlines AAdvantage credit card. With these credit cards, you earn 15,000 free frequent flyer miles when you make your first credit card purchase. As 1 mile essentially equals $.01, the free miles you obtain when you apply for one of these credit cards are essentially worth about $150. And, as these credit cards charge no annual fee during the first year, if you cancel your account before the year ends, you can make a nice little profit by just applying.
Take the miles and spend: Credit card "rewards junkies" employ strategies like this all the time. Essentially, this long term approach to racking up free miles requires that one take full advantage of their credit card rewards by buying everything they can with plastic. Here's an example of how this strategy can payoff. For this example, we'll use the Delta Skymiles credit card, which offers double miles for every dollar spent on everyday purchases, including supermarket, gas station, and drug store purchases.
Spend $200 a week on groceries and earn 20,800 miles in a year. Spend $50 a week on gas and earn 5,200 miles in a year. Spend $150 a week on all other purchases and earn 7800 miles in a year.
Based on this level of spending, you can 33,800 free miles over the course of a year. Add in your 15,000 free miles and you can easily buy a roundtrip ticket anywhere in the U.S.
The American Airlines AAdvantage credit card works in much the same way, although you cannot earn double miles on everyday purchases.
The key to maximizing your frequent flyer miles rewards with the charge everything strategy is to pay off as much of your bill as possible every month. Simply use the card instead of cash and be sure to use your cash to pay off your bill every month.
In addition to the AAdvantage and Delta Skymiles credit cards discussed above, there are also a number of credit cards that allow you to earn free frequent flyer miles on any airline. However, these credit cards tend to offer less, it any, free miles. People looking to maximize the value of free bonus miles will find the best deals from credit cards tied to a specific airline.
For more information on frequent flyer credit cards, such as the Delta Skymiles or American Airlines AAdvantage offers, visit SmartCreditChoices.com. Smart Credit Choices features detailed information on over 100 current credit card applications. Simply compare offers, find the best deal, and apply online for approval.
About the author: The author has been writing extensively on the subject of credit cards for nearly four years. Among other accomplishments, the author has been cited by MSN money writers, most notably as a source in an advisory article entitled, "Credit Card Companies' Evil Tricks." To learn more about credit cards and apply online, visit www.SmartCreditChoices.com.
Source: www.ezinearticles.com