How to Choose the Right Frequent Flyer Miles Credit Card?
- 1). List the airlines and travel hubs you most often fly to and from, and determine the average price of buying a ticket outright when traveling through these destinations. Use your previous cost of traveling through these destinations as an estimate. Or, use airfare averages from the Bureau of Transportation Statistics in your calculations.
- 2). Determine how long it will take to earn a free ticket by dividing the average amount you would charge on the credit card by the standard level (25,000 points) required for a reward ticket. For example, if you usually charge 6,000 on your credit card annually, divide 6,000 by 25,000. You will earn a free ticket a free ticket in 4.1667 years, or four years and two months.
- 3). Multiple the card's annual fee by the number of years required to earn a reward to determine the true cost of the reward ticket. Add any required redemption fees, which are charged when frequent flyers convert miles to tickets. Tally in the outstanding interest you must pay out by multiplying the amount of money you typically leave on your card's balance by the card's interest rate.
- 4). Subtract the true cost of the reward ticket from the price of buying the ticket out of pocket to determine if you'll save or spend money with a particular card.
- 5). Select the frequent flyer rewards credit card with the highest savings.
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