How Do Credit Card Miles Work?

You might have seen those credit cards that advertise their lucrative rewards programs for credit card miles. You might have also read those stories who explore the world with only their credit card miles alone.

This may sound a bit farfetched but yes, you can go on trips with just your accumulated miles. There are several factors that determine how many miles you earn and for what trips these miles can be used. Once you learn what credit card miles are and how they work, you will discover that it can give you more benefits than what you imagine.

Credit Card Miles –What are They and How Do They Work?

Credit card miles are a form of loyalty benefit some credit card companies offer to their customers to reward them for their spending using their credit card. You will accumulate more miles if you also spend more with your card.

The airline partner and credit card issuer define a value for every credit card mile such as a penny per mile. After accumulating enough miles, these can be redeemed for an award seat on one of the airline partners of the credit card.

Instead of the credit card issuer, the airlines are the ones who decide on the number of required miles for a flight. Based on how many miles you collected and each mile’s value, the credit card miles can be used to get a flight for free.

If your miles are not yet enough for a flight, you can buy extra miles to cover the difference to make you effectively receive a price discount. The specific number of required miles for a flight will depend on where you plan to go, whether it is peak travel season or not, as well as the flight’s price without miles.

If the credit card miles you have are tied to the frequent flyer program of an airline, you can also use your rewards so you can be qualified for free companion tickets, priority boarding, seat upgrades, or other benefits.

Is It Worth It to Earn Credit Card Miles?

Yes, credit card miles are definitely worth it, particularly if you will consider the fact that there is no need for you to do other things just so you can earn these credit card miles.

So long as you got the correct credit card, it is possible for you to spend just as you normally do and earn miles at the same time. Many credit card miles also don’t have expiration dates and there are usually no minimum amounts for redemption that can give you tons of flexibility and freedom to beef up your credit card miles account and redeem the accrued rewards any time you are ready.

In case you are serious in building up your credit card miles as quickly as possible, you can use your credit card as a replacement for your usual debit card activity. You will also be able to accumulate miles relatively faster compared to just using your credit card sparingly here and there. However, see to it that you have your balance paid in full every month to prevent you from being charged any interest. The rewards you earned can be offset if you pay interest on any types of credit cards, particularly on higher balances. Here you can read about Home Loan Tips.