County Down Outlook - Features - How Do Airmiles Credit Cards Compare to Other Reward Cards?

Features

How Do Airmiles Credit Cards Compare to Other Reward Cards?

Friday, 12 August 2011

These days, it can sometimes seem like there are so many different types of rewards credit card on the market that it is hard to know where to begin. How are you supposed to know which one would offer you the most advantages and would be the most suitable for you? Is any particular rewards credit card better than another?

One of the most popular types of rewards credit card is the airmiles credit card. This card allows you to earn airmiles for every pound you spend on your card. Once you've built up enough airmiles, you can then redeem them for a whole range of benefits. These include flight upgrades, complimentary companion tickets, flights to Europe, flights to long haul destinations such as New York, trips on the Eurostar, spa days and much more.

This range of rewards has made airmiles credit cards very desirable, but how do they stack up against other rewards credit cards? This article looks at different types of rewards credit card to give you an idea of what's out there, and so you can decide for yourself whether joining the airmiles credit card club is the right thing for you.

Discount cards

One common type of rewards credit card is the discount card. Typically, you can expect your credit card provider to have partnerships with a whole range of other companies and organisations. Then when you use your card to buy any of their products and services, you will generally get them at a discount. This can be useful for people who are looking to buy a specific product or who buy a certain item regularly and so could benefit from a discount.

In a way, this is what airmiles credit cards allow you to do, too; one popular option when it comes to redeeming airmiles is to combine the miles with extra money in order to purchase a flight. This essentially amounts to a discount on the flight, which is very appealing to people whether they are regular or occasional flyers.

Points cards

Another popular type of rewards credit card is the points card. This is a card that gives you points whenever you spend money on your credit card, and that often gives you extra bonus points for buying certain things. Once you've built up your points, you can then redeem them against a whole range of rewards. This could be everything from trips out to discounts on products, theatre tickets and more.

Again, airmiles credit cards are fairly similar to this in that they give you the opportunity to build up airmiles over a prolonged period. Then when you have reached a certain number of airmiles you can redeem them against the benefits offered by your credit card provider. Depending on how many airmiles you have this could be everything from a spa day to an upper class trip to New York, so airmiles credit cards definitely have the same benefits as points cards: it's just that the benefits take a more specific form.

Cash back cards

Cash back cards are also a common type of rewards credit card. The premise here is very simple: when you spend money on your credit card, you are given cash back in exchange for doing so. Depending on the specific card that you have and the items you buy, you can typically expect this cash back to be worth around 0.5% of your purchases, although some items might be worth more or less. What you do with this cash back is then up to you.

Airmiles credit cards may not offer you cash back on your purchases, but your airmiles can be redeemed against flights in place of cash, which many people certainly see as one of their main benefits. Having an airmiles credit card where the main benefit on offer is airmiles can help to inspire people to save for a specific thing; rather than frittering away their cash back, they save up their airmiles so they can enjoy real, tangible benefits later on.

Overall, which rewards credit card you choose to apply for is ultimately up to you. However, there are certain benefits that come with having an airmiles credit card as opposed to any of the others. One is that the airmiles you receive allow you to save up for something specific, which is great if you have always dreamed of a trip of a lifetime; your airmiles could help you to fund it. This means that airmiles credit cards combine many of the benefits of other types of rewards credit card, and the only way they differ is that rather than offering general rewards, they are more particular - something that certainly appeals to people with a love of travel.