Credit Card Miles and How Do They Work

What Are Credit Card Miles and How Do They Work?

A Credit Card is a plastic card issued by the bank or NBFC (Non-Banking Financial Company) for purchasing goods and other services on credit. Banks and NBFCs provide Credit Cards based on your salary and credit score. To be eligible to get a Credit Card, you should earn approximately Rs. 20,000 monthly (in most of the cases).

Many banks offer Credit Cards based on your salary and other transactional details and also keep an eye on your monthly transactions based on your salary and expenses. But, if you wish to Apply for a Credit Card online, then there are multiple websites where you can apply for a Credit Card.

Types of Credit Cards 

There are many types of Credit Cards, and many people choose cards based on the benefits they provide. For instance, if you drive a lot, you can save on fuel by getting a reward Credit Card that offers you a discount each time you fill petrol using the card. Or, if you tend to do a lot of shopping, you will be interested in getting a cashback card.

Some of the different Credit Cards that you can apply for in India include:

  • Fuel Credit Card
  • Business Credit Card
  • Balance Transfer Credit Card
  • Cashback Credit Card
  • Contactless Credit Card
  • Lifestyle Credit Card
  • Prepaid Credit Card

Some cards also provide airline miles, also referred to as frequent flyer miles. These miles can be accumulated to book free flights across the world. Usually, you can earn miles through airline co-branded Credit Cards.

What are Credit Card Miles? 

Credit Card miles are the currency of loyalty programs which are attached to travel rewards cards. These cards let you can earn miles or points that you can redeem later for airfare, hotel stays, or other travel expenses.

Under most programs, you can earn miles or points for every spend you make. Also, you get bonus miles for spending in different categories or spending a minimum amount of money within the specified period once you open a new account.

How Credit Card Miles Work 

There are two types of airline reward programs. One is earning miles by enrolling for an airlines’ frequent flyer program. When you do this, you earn miles each time you book a flight with that particular airline. The other reward program relates to your card. If you‘ve an airline co-branded card, you will earn miles whenever you use the card.

How Do You Earn Credit Card Miles?

Most times, you can earn miles on your flights with the frequent airline flyer programs. So, until and unless you are a frequent flyer, it can take you months or even years to gather the required miles for a flight.

When it comes to Credit Card miles, things are slightly different. You don’t have to fly to earn the miles. Just using the card like you always do will earn you miles. As a result, you can notch up miles quickly and redeem them as and when you like.

How to Find the Right Credit Card to Earn Miles 

Before you can start earning miles, the first and foremost thing you need to do is apply for a card with a miles rewards program. Mostly, all major card providers have at least one Credit Card that offers miles.

You need to review offers from the different card issuing companies to decide which card best suits you according to your spending habits and your goals for earning card miles. You need to keep in mind that to qualify for the reward from your card, you should have excellent credit.

Usually, if you have a Credit Card with a miles rewards program, you earn miles on all your card purchases, including travel and non-travel purchases. Cash advances and balance transfers don’t collect card miles. If you use your card frequently, you can earn a lot of miles quite quickly. Earning miles on a card is easier and faster compared to an airline’s frequent flyer program.

Some Credit Cards reward travel and other categories of purchases with a higher number of miles. Hence, you can earn more miles faster if you spend in these categories.

Things to Keep in Mind 

Even though the card miles are already added to your account, these miles can be taken away. For example, if you return any purchase, then the miles earned on that particular purchase is deducted from your miles balance.

If you don’t make timely payments on your card, you can lose the miles. Even if you get your account back in good standing, you won’t be able to get back the lost miles. So, it is imperative to be on top of your card payments if you want to keep your miles intact.

Choosing the right card is a tedious task as it is one of the critical factors that would determine the amount of your monthly savings. If you are asking yourself how to Find the Right Credit Card for Me, there is no need to worry. Get in touch with the financial experts at MyMoneyMantra. They will help you shortlist the right cards. After you compare the annual fees, features, and benefits, you can choose one card that you think is the aptest for you.

Also Read:  Pros & Cons of a High Credit Card Limit

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.

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