Airline credit cards may be a good way to rack up airline or hotel points. However, airline mileage credit cards come bundled with a variety of benefits, annual fees and interest rates so make sure that the card you select will provide you with benefits that outweigh any annual fees and interest charges.

Travel Reward Credit Cards Not Affiliated with a Particular Airline

Many non-airline cards advertise that you can earn miles on any airline and that the miles required to earn a free trip are less than on the airlines' cards. Ask yourself the following questions before signing on:

• Which airlines can you transfer your points to?
• Are points transferable to your airline frequent-flyer account?
  Most mileage cards handle card points and mileage points in one of three ways:
  • Mileage points acquired through use of the card flow directly into your airline mileage account.
  • Mileage points acquired through use of the card are only held within the credit card mileage account. Ticket rewards and upgrades can only be accessed by redeeming points acquired through the mileage card. Mixing of airline and card points is not allowed.
  • Mileage points acquired through use of the card are retained within the card's account balance but can be transferred to the airline frequent-flyer account. You may only be able to convert points to miles in blocks of points as specified by the card and the airlines, so read the fine print to make sure.
• Have you read all the fine print? You may discover that low-mileage round trips will not apply to coast-to-coast travel.
• Are you planning on using your miles to travel internationally? The number of points required for international travel may actually be higher than they would be with a regular airline-affiliated credit card.
• Is there a cap on the number of miles you will be allowed to earn?
• What priority will you receive from the airlines when you use your points? Since the availability of seats available to passengers using frequent flyer miles is plunging downward, ask the credit card company and your target airline what priority your reward will receive. Many people have found themselves with plenty of miles but no way to use them. Remember, the airlines give priority to paying customers first.
• How long are reward coupons good for?
• Is there an annual fee and how much is it? If you anticipate making enough credit card charges to acquire an award, compare the typical price of the airline ticket to what your annual fee will be.
• Will you be able to use your points for other things besides air miles? Cards such as the American Express(r) Card allow you to make purchases of services and merchandise with your points.
  
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Airline Credit Cards Offered by a Specific Airline

Ask yourself the following questions to make sure you're getting an airline credit card that's right for you:

• What's the annual fee? Think about the amount of purchases you will make using this credit card. You will want to accrue enough points to compensate for the annual fee.
• What's the interest rate? Travelhammer recommends mileage credit cards only if you can pay off your balance each month. Since that may not always be possible, a competitive interest rate is important.
• Are there initial one-time benefits? For example, United Airlines' First Card has offered a free companion ticket for each United ticket purchased, and some mileage cards will waive the first year fee.
• What's the grace period before interest accrues? This is very important. Some credit cards will start accruing interest before you receive your statement in the mail. In this case, the only way you can avoid paying interest is to pay off your balance before you receive your bill.
• Is there a cap on how many points you can earn per year from your credit card? Make sure you get a card that's not too restrictive.
• Are there any additional benefits? For example, cards may offer such benefits as travel accident insurance, rental car insurance, discounts on rental cars, or theft insurance on products purchased with the card.

Weighing the Benefits

Before signing up for a credit card that offers you a promotional, one-time incentive (bonus miles, a free companion airline ticket, no annual fee for the first year), ask yourself if the benefits will outweigh the cost.

For example, if you signed up for a credit card with an annual fee of $75 that promised you a free companion ticket for travel within the U.S., and if you figure the lowest-priced, coast-to-coast ticket would cost you $200, you would save $125 the first year. Then consider the miles you'd rack up on charges made on the card during the year. If you carry a zero balance and pay your bills on time, you win in year one!

You might want to cancel the card in year two since you won't get another free companion ticket. It may even be possible to cancel the standard card then reapply for the gold or platinum version of the card and get another free companion ticket. If this doesn't work, shop for another unrelated mileage card. Cards such as the MilesOne card from Capital One offer you the ability to redeem miles on several airlines.

Maximizing Your Credit Card Miles

Here are some ways you can use your airline credit card to earn more miles. Check with your:

• cell phone company and see if you can have your bill automatically charged to your airline credit card.
• mortgage company and see if you can have your monthly house payment charged to your airline credit card.
• local utilities (electric, gas, water, cable TV, Internet service provider) and ask if these bills can be automatically charged to your airline credit card.

Just make sure you pay off these bills every month!

See more great airline credit card deals from A Field Guide to Credit. Be sure to check out their "best picks" section to find dollar rewards credit cards as well.