Airline Miles and Credit Cards

There are several ways to earn airline miles on your credit card:

1.  Sign up for a co-branded airline miles credit card:
Many airlines offer their own branded credit cards that earn miles for every purchase you make. All of the airlines have partnered with a bank to offer an airline miles credit card.  For every dollar spent on the card you will receive between one and two points.  These cards may also offer sign-up bonuses, which can give you a large number of credit card airline miles upfront.

2.  Purchase your normal expenses on your airline miles card.  Usually you will get one point or one and a half points per dollar spent on the card.  

3.  Use your credit card to purchase reimbursed business expenses from your employer.  A friend of mine was on the road four days a week for work.  He put all of his expenses on his airline cards and then was reimbursed by his company.  He used his airline miles for his vacations and as gifts for friends and relatives.  He generated a lot of points.

4.  There are a few points transferring networks available.  I have multiple Chase cards.  I earn at least 1.5 points on one my cards on every purchase and up to 5 points per dollar on another Chase Card.  I also have a Chase Sapphire card which allows me to transfer these points to my United Airline Miles.  

Which Airline Miles Credit Card should I get?

The Airline card that you have the most opportunity to use is probably the best.  For instance where I live the local airport only has flights from Delta and United.  The United card offers way better deals on flights than the Delta Airline Miles card does so I use credit cards that get points I can transfer to United miles.

The difference between Points and Airline Miles

All of the High Value Credit Cards will offer points, cash back, or airline miles when you use them to make purchases.  Virtually all of the points or cash back points can be redeemed for a check to you or the points used against your balance.  Usually the airline miles can only be used to purchase flights on a particular airline or travel expenses purchased through the airline portal.

One Way Points Transfer

 

Many of the basic Points cards will allow you to transfer your points to an airline or hotel point system.  For instance all of the points you get on any of the Chase cards can be transferred to one of the Airline or Hotel cards that Chase offers.  However there are limitations on the transfer.  You can only transfer points onto an airline or hotel card, you cannot transfer from an Airline Miles or Hotel card back to points.

Choose an airline miles credit card with travel rewards:

Some credit cards offer travel rewards that can be redeemed for airline miles or other travel-related expenses. These cards may also offer bonus points for travel-related purchases, such as flights or hotel stays.  The Chase points offer a 25% discount on travel purchases you make with your points.  So when booking a rental car or hotel you can use points and save.  

Shop through Airline Miles Credit Card shopping portals:

Many airline credit cards have online shopping portals that allow you to earn extra miles for purchases made at certain retailers. By using your credit card to make purchases through these portals, you can earn additional miles on top of your credit card rewards.

Take advantage of credit card sign-up bonuses:
 

Some credit cards offer large sign-up bonuses in the form of airline miles or points that can be converted to airline miles. By meeting the spending requirements to earn these bonuses, you can earn a significant amount of miles to use towards future flights.  I have personally gotten several hundred thousand points from sign up bonuses.

Credit Card Churning

Credit card airline miles churning is where a person signs up for multiple credit cards that offer points or airline miles, earns the sign-up bonuses and other rewards, and then cancels the cards before paying any annual fees. The goal of churning is to maximize rewards and earn free travel by taking advantage of the various bonuses and perks that credit card companies offer to attract new customers.

This can work well for people who have good credit and can manage multiple credit cards responsibly.

Responsible Airline Miles Credit Card Use

It's important to note that earning airline miles on your credit card typically requires responsible credit card use, such as paying off your balance in full each month and avoiding high interest charges. Additionally, it's important to compare credit card offers and choose a card that aligns with your travel goals and spending habits.