A Beginner’s Guide to Airline Miles

Posted on January 5, 2021 by resourcefulman

Frequent flyer miles are great. Use them correctly and you will save tons of money on your travels. But they are not always easy to use, and getting started can seem more confusing than worth it. While there are many hacks that need to be done to get optimal scores, most of us can happily accumulate and spend miles without a second thought. Let’s demystify airline miles and figure out how to use them.

What are airline miles?

Air miles, also known as frequent flyer miles or travel points, are loyalty programs offered by airlines and credit cards. Typically, you earn a certain number of miles depending on how much you spend on your ticket (or how much you spend on your credit card). You can then use those miles to purchase additional tickets.

At first glance, this is easy enough, but airline miles are not that easy. First, the term “miles” does not mean the actual number of miles you have flown so far or may be flying in the future. In essence, air miles are like any other reward program: you earn points for purchases, and eventually those points accumulate and you get something for free.

Difference Between Credit Card Rewards and Airline Rewards

In the world of airline miles, you can earn points in two ways: by signing up for the service through the airline itself, or by signing up for a credit card that offers bonus miles. Some credit cards work with all airlines, while others only work with specific airlines. Both have merits and demerits. Either way, the good news is that you can use both at the same time.

Each airline has its own frequent flyer program, which is usually billed as a loyalty program. They are free and you can earn miles by flying with this airline or its partners. When you register for an account, you will receive an account number that you can use for future flight purchases. These services are very simple: you earn miles for every flight you take, and when you have accumulated enough, you can redeem those miles for a free flight with this airline or its partners. Typically , these miles do not expire while you are using your account, purchasing flights from time to time.

Airline miles credit card rewards work a little differently. You earn points when you shop and then redeem those points for frequent flyer miles. But how much they cost depends on the credit card. As with many bonus credit cards, you will often have to deal with annual fees. Since you probably use your credit card much more often than buying plane tickets, it is usually easier to accumulate points with a credit card than with an airline reward program.

How to choose the travel credit card that’s right for you

Everyone should have a frequent flyer account with the airline you fly most often – they’re free, after all. If you fly a lot, it is also worth considering a credit card that rewards you with bonus miles. However, choosing the right one can be quite tricky.

Typically, the best reward card is the airline that has a hub at your local airport, or one that flies frequently to cities you frequent. But if you don’t have a favorite airline or destination, cards that allow you to use your points to travel through various partners like Chase Sapphire or Capital One Venture can help you maximize your reward potential.

These cards often offer the biggest signup bonuses that allow you to earn a whole bunch of points when you spend a certain amount of money on your credit card once you open your account. This can be tricky to do without running into debt, so you need to be confident in your ability to pay your credit card bill in full each month if you’re going to get one of these signup bonuses.

Finally, if you have many options for different cards, consider the ones that give you more points for certain types of purchases. Credit cards often provide double (or more) miles for certain types of purchases. For example, many cards offer double or even triple points if you use your credit card for dining out. If you eat in a large number of restaurants, this will help you earn more miles than other cards.

It is worth noting that you will not accumulate the most points on a travel card’s credit card if you book through a site such as Expedia or Kayak. To earn the extra miles or points that the card has to offer, you need to book through the airline itself. However, this does not apply to airline frequent flyer programs, only credit card miles.

How Redeeming Airline Miles Really Works

So now you have your travel credit card and frequent flyer accounts. You have completed several flights, spent some money using these credit cards and are ready to redeem those points for a real ticket.

You will first travel to the airline where you have a frequent flyer account. Sign in, search for flights and select the option to see fares converted to points or miles instead of dollars.

If you have enough points to cover the entire round trip, you will only need to pay the necessary safety fee for the round trip. If you do not have enough points to use for the entire trip, you will need to book separate flights.

If you have a credit card that allows you to redeem points with different airlines, you will need to plan ahead by transferring your rewards to a specific airline or by booking your flight through that card’s redemption portal.

Increase miles and rewards

Of course, this is just the beginning (this is a beginner’s guide after all). If you are willing to put in the time and energy of your mind, you can make sure that you earn points in the most efficient way for you. This isn’t necessary for most of us, but here are some advanced tricks to help you get the most out of those miles:

As with most money-related things, you can dig pretty deep for airline miles and get all sorts of bonuses. For most of us, the basics of using miles is enough to save you a little money each year, and it’s not that hard to keep track of.

This post was originally published in 2014 and was updated on January 5, 2021 to include more recent information.

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