A Beginner’s Guide To Credit Card Points And Miles

Wondering which type of credit card would suit you as a frequent flyer? Then you have reached the right place. In this article, we have covered everything about travel credit cards that you need to know. For a frequent flyer, a travel card does all the work as with it you can earn travel points or miles whenever you spend on travel categories. Need not worry about what travel points or miles, we have covered you here as well. 

First thing first, what are travel credit cards? If you understand this then it will be easier for you to understand travel points and miles. A travel credit card is basically a credit card that is designed especially to meet the travel requirements of the customers. With a travel credit card, you earn rewards on the travel expenses that you can further use towards booking flights or hotels or even for purchasing products or e-vouchers, etc. Now moving on to the article, keep reading to know more about the travel points and miles. 

What are travel points and miles and how do I earn them?

Travel Points and miles are rewards that you earn on your travel spend categories. There are three types of travel points that you can earn specifically on credit cards for travel, namely airline miles, hotel points, and transferable points. 

• You earn Airline miles specifically on the designated airline, such as on the Etihad Guest SBI Premier credit card you get to earn up to 6 Etihad Guest Miles on every Rs. 100 spent on the card. 
• Similarly, some premium credit cards offer you the membership of a hotel loyalty program that lets you earn membership points on your spending. For example, on American Express Platinum Travel Credit Card you earn 2 membership points on every Rs. 100 spent on the credit card. 
• Then there are other credit cards for travel that let you earn reward points which are transferable points as you can redeem those points either for booking flights or hotels or even for purchasing products, gifts, e-vouchers, etc. 

Key Takeaways:

• There are two most important things that you need to keep in mind while using any type of credit card. First, you need to keep your credit card dues clear in full and on time. For this, you can register for the auto-debit services so that on the due date the credit card bill can be debited automatically without you having to remember the due date. 
• Secondly, you need to maintain a low credit utilization ratio between 30% - 40%. To avoid exceeding this limit you can set a threshold limit, on reaching that limit you will be notified about it so that you stop using your credit card afterward.

Bottom Line:

To summarise, credit cards for travel are the most rewarding credit cards that a frequent flyer can go for. On these credit cards, you not only save on travel expenses but you also enjoy other benefits like shopping benefits, entertainment benefits, insurance benefits, and much more. You can make the most out of these benefits only when you have selected the right credit card. Choosing the right credit card that suits your spending habits and needs is a crucial step toward making or breaking a deal for you. You do not want to have a credit card that increases your expenses rather than letting you earn benefits and rewards.