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How do airline credit cards work?
Airline credit cards are a result of collaboration between credit card companies and different airlines. The concept of airline credit cards works well for frequent travelers, who gain in a number of ways by using airline credit cards.
Purchases made through the credit cards earn points for the card holders; these points can be redeemed for free miles with the airline, at a car wash, hotels, etc. Points are also earned by flying with the chosen airline. The points are earned on the basis of predetermined point levels. This helps fliers to calculate the number points required to qualify for free travel. It is important to be aware of the consequences of card inactivity over a period of time and factors that can lead to points expiration. There may also be a limit to the number of points that can be accumulated in a year. Some airline credit cards have a maximum limit of 100,000 points in a year and points lapse if the card is not used for three years.
Airline credit cards work in the same way as credit cards but may charge a slightly higher interest rate. Annual percentage rate (APR) is used to measure the cost of credit. The methods used for calculating the rate of interest are two cycle average daily balance and average daily balance. The former, which considers the average of the current and previous balance, works out to be more expensive; this is something one should bear in mind while selecting an airline credit card. Different airline credit cards offer different rates; the rate of interest also depends upon the card fees, bonus points, and the grace period. A high rate of interest need not be a worry for card holders who do not have a balance to be paid at the end of the month. All the same, there are airline credit cards that offer 0% interest on balance transfers for an introductory period and also charge a low interest rate.
Airline credit cards have a preset spending limit that affects the amount to be paid monthly; certain airline credit cards offer a very high spending limit and even allow users to exceed the limit, the excess amount being settled in the next month. Airline credit cards can be of greater value if they are compatible with other frequent-flyer programs as they enable cardholders to use the points earned to the best possible advantage. An annual fee is charged by most airline credit cards in order to cover the costs of the benefits offered. Cash advances may also incur a fee, which can have a minimum value of $5 and can go up to $50, depending upon the credit card company and the advance taken.
Private Label Reward Credit Cards (Page 1 of 2)
More and more, consumers are becoming just as interested in the label associated with their reward credit card as they are with the interest rate, possible annual fees, and rewards. After all, credit cards were once very nondescript with nothing special separating one from the other but the Visa or MasterCard logo in the bottom right hand corner.
Looking for Unique
Today, many consumers are looking for reward credit cards with flair, personality, and a unique quality. Of course, consumers are still interested in receiving a great deal with their reward credit cards and, for the most part, won’t be willing to give up quality for a pretty picture. Nonetheless, the offerings of credit cards are becoming more and more competitive as they fight each other for customers. Therefore, many of the best reward credit cards offer a variety of different styles to the consumer in order to attract them to their card. In some cases, the designs may indicate a different type of card with different benefits. In other cases, the same type of card may have many design options to choose from.
Breaking the Mould
The first credit card to offer an intriguing design was the Discover Card. This occurred over twenty years ago when their sunburst design crashed into the market. Since all credit cards looked pretty much the same at the time, the design on the Discover Card was considered to be quite revolutionary. In addition, it garnered a great deal of attention from consumers. Understandably, other cards followed suit.
Following the Trend
Today, most reward credit cards offer attractive and fun designs. Nonetheless, Discover Card continues to lead the charge. Understanding that a single design is not going to please everyone, Discover offers more design choices than any other reward credit card. They have many wild designs, ranging from fun and colorful to professional and demure.
Discover’s variety of options began when it launched its clear card option for those who were applying for the card. At this time, it offered a credit card with a translucent blue background with a bright lighter blue grid pattern on top. After this design caught on in popularity, Discover decided to start offering more designs for all of their cards, including reward credit cards.
Today’s Designs
Today, Discover offers a patriotic American Flag card, which was launched after the 9/11 attacks. It also currently offers an entire line of sea life and wildlife cards that include images of animals such as a bald eagle, a tiger, and a killer whale. Their designs also include artistic designs, see-through cards, and other cards with a natural or patriotic theme. When selecting from rewards credit cards, you do not have quite as many design choices as you would if you were not limiting yourself to a certain type of card. Nonetheless, you will still have different designs to choose from in order to make the card unique to your personal taste and lifestyle.