High spending shoppers could be missing out if they haven’t got the right credit card. The more spent on some cards, the more consumers could earn to spend on flights and holidays.
Gocompare.com has analysed the 241* credit cards on the market, which are provided by 101 companies to compare what cards offer air miles, or the equivalent, as loyalty rewards.
40 cards allow customers to spend and earn air miles - some cards let holders to buy Virgin Atlantic Flying Club miles while others offer Avios points – so consumers can spend on their card, and save up enough points to swap for free flights, although taxes and charges will still have to be paid for.
Some of these credit cards have introductory miles bonuses and may allow customers access to executive lounges in airports, but some cards have an annual fee and require that applicants must have a household income of £30,000 a year.
Points are earned for every pound spent, with some cards offering one point per £1 spent, while others offer 1.5 points per £1 spent.
Gocompare.com’s credit card spokesman, Matt Sanders, said: “These cards are great if you are a frequent flyer and a high spender. For example, you can fly from Heathrow to New York if you accumulate 20,000 Avios points with British Airways and pay the taxes, fees and other carrier charges.
“But if you are going to use one of these cards you have to ensure that you pay off the balance at the end of each month, otherwise the points you earn from your spending will get wiped out by the interest you accrue.”
Matt added: “Choose your plastic wisely and make it work for you. There are so many good credit card deals and offers around at the moment that it really is a consumer’s market. But you must remember to play the credit card game – don’t miss a payment, and, if possible, pay the balance at the end of every month, or you’ll end up paying more money in interest payments. One slip up could damage your credit score.
“Using these cards to pay for your long haul flights is a great idea if used in the right way, but if you aren’t a big spender and don’t use your card that frequently, these cards might not be the right ones for you. Paying an annual fee might wipe out any value you earn on them. But if you are using a credit card every day and are often jetting off, give one of them a go – you might just have to pay airport taxes and charges for the holiday of a lifetime!”
Notes to editors:
* Source: Defaqto Matrix of 241 credit cards - instant and unbiased market and competitor intelligence, from independent financial research company Defaqto. Correct as of 31st January 2014.