You've probably seen credit cards promoting their lucrative credit card miles rewards programs. You've read stories of people who fly around the world for next to nothing by using credit card miles. It may sound like a gimmick, but it's possible to accumulate miles and use them to take trips. The number of miles you can earn, and the trips you can take with those miles, depend on a few factors. Once you understand how credit card miles work, you may decide whether it's a benefit you'd like to have.
What Are Credit Card Miles?
Credit card miles are a type of loyalty benefit that certain credit cards give to customers as a reward for their credit card spending. The more you spend on your credit card, the more miles you accumulate. For example, a credit card might reward you with one mile for every $1 you spend on your credit card.
The credit card issuer and airline partner define a value for each credit card mile, like a penny per mile, for example. Once you've accumulated enough miles, you can redeem them for an award seat on one of the credit card's airline partners.
Airlines, not the credit card issuer, set the number of miles required for a flight. Depending on the number of miles you've accumulated and the value of each mile, you can use your credit card miles to get the free flight. If you don't have enough miles for a flight, you may be able to purchase additional miles to make up the difference, effectively receiving a price discount. The number of miles required for a flight depends on where you're going, whether or not it's peak travel season, and the price of the flight without miles. As an example, you might need anywhere from 12,000 to more than 40,000 miles for a flight.
If your credit card miles are tied to an airline's frequent flyer program, you may be able to use your rewards to qualify for seat upgrades, priority boarding, free companion tickets, or other airline benefits.
How Do You Earn Credit Card Miles?
With airline frequent flyer programs, you typically only earn miles on your flights. So, unless you're actually a frequent flyer, it can take several months or even years to accumulate enough miles for a flight. The attractive thing about credit card miles is that you don't actually have to fly to earn miles. You simply have to use your credit card.
Before you can start earning miles, first, you have to apply for a credit card with a miles rewards program. Nearly every major credit card issuer has at least one credit card with credit card miles. Review the offers from various credit cards to decide which falls in line with your spending habits and your goal for earning credit card miles. Keep in mind that you typically need to have excellent credit to qualify for the best rewards credit cards.
Credit cards with miles reward programs usually pay miles on all your credit card purchases, travel, and non-travel purchases alike. (Cash advances and balance transfers don't earn credit card miles.) That means you can earn enough miles for a free flight much more quickly and easily than you could with an airline frequent flyer program. (That is, if you don't travel frequently.)
Some credit cards reward your travel or other categories of purchases with a higher number of miles, which is a plus if you are frequently flying. Spending more in these categories will help you earn credit card miles faster.
Credit card miles can be taken away, even after they've been added to your account. For example, if you return a purchase, any miles earned on that purchase will be deducted from your miles balance. If an airline files bankruptcy or goes out of business, you may lose your miles, too. You can also lose your credit card miles if you fall behind on your payments and your account is no longer in good standing.
Unfortunately, you won't get your forfeited credit card miles back once you bring your account back into good standing. It's especially important to stay on top of your credit card payments on any credit card with which you've earned credit card miles.
How Can You Check Your Credit Card Miles Balance?
If you're saving up credit card miles for a trip you want to take, or you just want to keep up with the miles you've accumulated, you can check your credit card miles balance on your most recent billing statement, by logging into your online credit card account, or by calling your credit card issuer.
It may take a few days after you've made a transaction for miles to credit to your account. Your credit card issuer's customer service can answer questions about any miles that may be missing from your account.
It's also important that you protect your credit card miles from theft. Thieves who gain access to your account can redeem your miles. If you're not paying attention, you may not notice for several months.
You can protect your credit card miles by ensuring you have a strong password on your credit card account. The best passwords include both capital and lowercase letters, at least one number, and one character. Avoid using your passwords across websites.
Check your miles balance often and notify your credit card issuer if you notice anything suspicious. They'll be able to track down any missing rewards, let you know whether they were redeemed and credit them back to your account in the event of any unauthorized use.
How Do You Redeem Your Credit Card Miles?
Once you've accumulated enough credit card miles, you can redeem them for an award seat on a flight. It may be useful to keep your schedule flexible if you're redeeming credit card miles for your flight. The number of miles for flights may differ depending on the flight's day and time.
Depending on the miles program, you may be able to combine credit card miles or transfer between airlines. Make sure you pay attention to the fine print with combining and transferring miles. Sometimes you may lose miles in the conversion between programs.
The exact method for redeeming credit card miles depends on the credit card you're using. When you're purchasing your flight through your credit card issuer's booking tool, you'll typically be given the option to use your credit card miles directly for the flight. You may be able to redeem your rewards on the same online site that you check your credit card balance and pay your bill. Or your credit card issuer may have a separate website for redeeming your credit card miles.
For example, there are American Express Travel, Chase Ultimate Rewards and Citi ThankYou rewards points.
Check with your credit card issuer or read through your credit card benefits guide to determine the specific steps you should take to redeem your credit card miles.
Some credit cards allow you to redeem your rewards retroactively as a credit to your credit card billing statement. You have to make the redemption within a certain amount of time after the travel-related transaction posts to your credit card account.
Is Earning Credit Card Miles Worth It?
Credit card miles are absolutely worth it, especially when you consider that you don't have to do anything extra to earn credit card miles. As long as you choose the right credit card, you can spend as you normally spend and earn miles. Most credit card miles don't expire, and there are often no minimum redemption amounts, which gives you a lot of freedom and flexibility to build up your credit card miles account, then redeem your rewards when you're ready.
If you really want to build up your credit card miles quickly, replace your normal debit card activity with your credit card. You'll earn miles much faster than if you only used your credit card here and there. Just make sure you pay your balance in full each month, so you're not charged any interest. Paying interest on any type of credit card offsets the rewards you've earned, especially on higher balances.
Frequently Asked Questions (FAQs)
What is the best credit card for travel rewards?
Choosing the best travel rewards card for you depends on your preferences and travel habits. Our favorite overall, for its generous rewards, is the Chase Sapphire Reserve® Card, but it does have a steep annual fee. For great travel rewards without the annual fee, check out the U.S. Bank Altitude® Go Visa Signature® Card.
What are the different types of credit card rewards?
Credit card rewards generally come in three types: cash back, points, and travel. Cash-back rewards are only redeemable as cash, but points can usually be redeemed for cash or other rewards. Travel points are typically only redeemable for airline travel, hotel stays, rental cars, or vacation packages.