If your looking to boost your frequent flyer scheme points then flying more is not the only way to do it. You can earn points everyday on anything from your grocery shop to filling up at the gas station. This can be done with a frequent flyer enabled rewards credit card. These cards have become one of the most popular variety or rewards for credit cards and are offered by many card issues for use in conjunction with major airlines.



It helps to remember that frequent flyer credit cards are classified into three broad classes: airline (or hotel) affiliated cards, like the Delta SkyMiles credit card from American Express; multi-program cards, such as American Express cards with their Amex Rewards program; and bank cards with their individual travel rewards schemes, such MilesEdge Visa from Bank of America and PremierPass MasterCard from Citibank. Below we have noted the biggest differences to be aware of.

Miles Earning Rate: Typically you can expect to earn around one mile per dollar spent with an airlne affiliated rewards card. Based on getting one or two cents worth of points for each mile you earn the value of the points would be worth around 1-2% of what you spend. If you purchase airline tickets from the airline hosting the frequent flyer credit cards, you get double miles. Some airline-affiliated frequent flyer credit cards also award double miles on purchases at qualifying merchants. Others give bonus miles after a new cardholder makes the first charge. Some cards allow you to earn only 50,000 to 100,000 miles annually (with adjustments for those paying higher annual fees and for elite club members).

Multi-program cards (such as American Express credit cards linked to the Amex Rewards Program and Diners Club card with its Club Rewards Program) normally award one point per dollar charged. You earn two Amex rewards points on every dollar spent at qualifying merchants. The key benefit is that point earnings on multi-program cards can be exchanged point-for-point in the mileage programs of many partner airlines and hotel chains.

Like airline-affiliated frequent flyer credit cards, bank travel rewards cards award one mile per dollar of net spending made on the card. Mileage earnings on bank cards have expiry dates (normally about 3-5 years), unlike miles from airlines which you can extend indefinitely. Bank cards also place a cap on mileage earnings per month and/or per year.

Cost and Redemption: Airline-affiliated frequent flyer credit cards impose annual fees, usually about $45-$65 but can vary between $39 and $140. The annual percentage rates are in the higher levels. Many airlines programs have a reputation for being full of restrictions with very limited seat allowances on each flight. You also have to contend with blackout dates.

Multi-program cards have higher annual fees, around $95-$110. These cards tend to offer more benefits than the other types, such as providing primary (not secondary) insurance coverage on rental cars which actually saves you money. Redemption fees are also charged when exchanging points for airline miles; this is partly due to a federal excise tax imposed on purchases of miles from a U.S. airline frequent flyer program. Since you are supposed to pay off each month's statement in full, there is no interest rate.

Bank cards usually charge lower fees, and generally impose lower annual percentage rates than airline-affiliated cards. If you earn miles solely on purchases, bank cards give more advantage than airline frequent flyer credit cards when you redeem miles. Unlike airline programs, bank cards buy your ticket from any available airline, provided you inform them at least 21 days before your planned departure date. There are no blackout dates. The downside is that bank cards may impose a maximum dollar value on the ticket award ($300-$500, depending on the program).

To sum up, frequent travelers who earn many miles through actual travel should use airline-affiliated frequent flyer credit cards, and possibly have a second card (multi-program cards are well-suited) to supplement mileage earnings. If you cannot consolidate mileage earnings in one program, you make multi-program cards your primary card, to tap into programs like the Amex Rewards, provided you like flying on their partner airlines.

Frequent buyers who earn miles mainly from credit card purchases will find bank travel rewards cards are the more cost-effective means of getting that occasional free ticket, without blackout dates and airline restrictions.