The content is accurate at the time of publication and is subject to change.

Research: Before applying for airlines credit cards -

Among the various types of rewards credit cards currently available in the market, it is the ones that offer air miles that are often preferred. But with the airline companies tightening their belts right from the time recession set it, redeeming the air miles accumulated on the cards is not an easy affair any more. With the airline sector reducing the number of flights on each route and ensuring all seats are completely filled, people trying to redeem their air miles are finding it increasingly difficult by the day. Added to it, during the festive season most airline companies do not encourage redemption of air miles, which means that card holder will have very limited options to consider. The interest rates and annual fees for these cards are also not the same are the regular non-reward cards. Hence, keeping all these factors in mind, there are a few questions that you need answered before you apply for the airlines credit card.

What are the charges associated with the airlines credit cards?

This is by far the most critical question that you need to ask. These cards are supposed to have the highest fees as compared to any other type of reward cards. This is not surprising considering the cost of the air tickets are increasing by the day. It is important to speak to the executives at the bank and find out the APR on the card and the annual fee that you will have to pay. Most of the banks and financial institutions offering these cards to customers have some great promotional offers where they waive of the annual fees for the first year and also provide less APR on the card. Do not get fooled by this though. Find out the actual APR once the promotional period expires so you don`t get a rude awakening once the promotional offer is through. Understand the late fees, financial charges and the other costs of availing the card.

When can I redeem the points?

Air miles cards do seem attractive, but most of the time, you cannot use them when you actually need it. In order to encourage customers to spend using the card, credit card companies set high limits on air miles before the customer can redeem them. This implies the customer has to use the credit card for most purchases in order to accumulate those points.

Are you a frequent traveler?

The airlines credit cards are the perfect choice for customers who travel frequently. They can save on the cost of availing the tickets by redeeming their points. If you are not a frequent traveler, there is not much you can do with the card except using it for your purchases and paying high costs to retain it in your wallet.

Can you repay the outstanding balance in full?

Ask this question honestly before you sign up for it. If you don`t repay the outstanding in full each you will only end up incurring insurmountable debts which can adversely impact your credit history in the long run. Sign up for the airlines credit cards only if you can repay your dues on time each month.