When to Choose Frequent Flyer Miles Instead of Award Points
With so many credit card options available, it can be difficult to sort through everything from earning rates, fringe benefits, and included insurance coverage to decide which option is right for you. Deciding if you want to earn flexible credit card points or frequent flyer miles with a specific airline is a good place to start. Here’s what you need to know.
When are flexible credit card points better than frequent flyer miles?
When it comes to credit card points, there are a few things you need to keep in mind. Credit card points can often be used for a range of things, including travel expenses, cash back, gift cards, and even merchandise. However, how you can use your points varies by credit card issuer, so it’s important to do your research before signing up for a card.
You can choose a credit card that earns flexible points (such as Chase Ultimate Rewards, American Express Membership Rewards, Citi ThankYou Points, or Capital One Miles) – and that flexibility can come in handy when it comes time to redeem your miles, ultimately making them more beneficial. easier to use and sometimes more valuable.
Also keep in mind that the value of your Flexible Reward Points may vary. For example, your points may be worth more if you redeem them for rides during a promotion rather than refunds or merchandise (merchandise is often one of the worst possible exchanges). Some bank points can be transferred to partner airlines, in which case the value of your points will be affected by award prices, award availability and current cash prices.
When are frequent flyer miles better than flexible credit card points?
On the other hand, frequent flyer miles can usually only be used to cover travel expenses. But if you frequently fly with a certain airline, this might be the best choice for you. Depending on the credit card you choose, you’ll often receive perks such as free baggage check-in, priority boarding, and even lounge access. If you frequently fly with one particular airline and pay extra fees for things like checked baggage, the savings you can get from these benefits may be more valuable than the added flexibility with flexible banking facilities.
And, of course, you can use your points for flights in addition to other benefits offered by the card, but as with flexible points, the value you get from your points will vary depending on the premium price, the availability of awards, and current cash prices. What you won’t have is the ability to transfer airline-specific miles to other partners or use them for more flexible refunds.
Which option is best for you?
So which is the best choice for you? It really depends on your spending habits and how you plan to use your rewards. If you fly frequently with a particular airline, then a card for that airline that earns frequent flyer miles may be a good fit for you. But if you want more flexibility in how you redeem your rewards, then flexible credit card points are the best option.