Are Air Miles On Credit Cards Really Worth It? Here's What You Need To Know

Credit cards offering air miles have skyrocketed in popularity in recent years, promising cardholders the allure of cheaper flights, travel upgrades, and exclusive perks. But what exactly are air miles? Essentially, air miles are reward points that are related to traveling via flights; these points are gained using specific credit cards or airline loyalty schemes. Later, these miles can be converted into flights, hotel reservations, or other expenses related to traveling. Still, with more people getting into the chase for the rewards, questions arise on whether air miles are worth the value they seem to hold or if there's more to the fine print.

Credit cards air miles are simple: for a certain amount spent, a cardholder earns points, later turned into miles, usable in traveling. In essence, the more one spends, the faster the miles are earned. Sounds simple, yet not really, as in the real world, their actual value varies significantly by airlines, credit card, even the cardholder's style of travel.

One of the major challenges with air miles is understanding what they are actually worth. The value of a mile can differ under the various loyalty programs and sometimes comes with blackout dates or limited seats to avail on redeemable flights. Additionally, the cards have a very high annual fee that charges for earning these miles, and in cases of less frequent travels of a cardholder, value is not returned for that sum of money from those cards.

Other issuers of credit cards have further expiration dates on the miles. This means that the mileage will perish unused in a given period. As a result, without mileage management, cardholders risk losing their preserved miles.

However, there are also benefits. For those who fly often, the ready miles that can be redeemed for lower prices really do make a difference in the cost of travel. For example, while some cards have sign-up bonuses that award an enormous number of miles if one meets the minimum spending level within the first months of opening the account, this can get a fund going for travel, so that miles can be redeemed on expensive routes.

However, experts point out that if a credit card with air miles is tempting to over-spend, the resulting debt may prove to outweigh the rewards. Interest rates on unpaid balances often exceed the savings from rewards.

In short, for the frequent traveller who tracks expenses closely, credit cards with air miles can be very useful. However, for the less frequent traveller, cash-back or low-fee cards may be a better choice, offering consistent savings without having to keep track of miles or spend on many things.