Air Miles credit cards, some of the most popular frequent flyer credit cards, can help you monetize your daily spending. This type of credit card typically caters to frequent travellers, but even infrequent travellers can enjoy the perks of earning points for a wide array of travel and non-travel-related benefits.
Eligibility criteria, terms and conditions, fees and charges apply
Purchase interest rate
BMO AIR MILES Mastercard
Apply today and earn up to 800 AIR MILES bonus miles with minimum spend of $1,000 in the first three months. Ends March 3, 2020.
- Purchase interest rate: 19.99%
- Cash advance rate: 22.99%
- Intro balance transfer rate: 1.99% for the first 9 months
- Standard balance transfer rate: 22.99%
- Annual fee: $0
- Credit rating: Good
- Minimum income: $15,000
- Minimum age: Age of majority in the province/territory of residence.
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Air Miles credit cards allow you to earn frequent flyer points directly as you charge purchases to your card. You can typically earn 1 frequent flyer point for every $10-20 spent on eligible purchases. The number of points you earn per dollar, known as your earn rate, differs among credit cards and transaction types. For example, a credit card could let you earn 1 point per $10 on eligible purchases, but only 0.5 points per $10 spent on other transactions.
As well as direct frequent flyer credit cards that earn points with one program, some rewards cards also allow you to transfer your points to several partnered frequent flyer programs (otherwise known as indirect earn cards). If you belong to several frequent flyer programs, this might be one way you can get more flexibility from your rewards card.
When comparing Air Miles credit cards, be sure to factor in the costs and make sure they don’t outweigh the value of any possible rewards and benefits. Air Miles credit cards can be great tools for frequent flyers who pay off their account balances in full each month, but are probably not suitable if you wish to carry an outstanding balance on the account.
If you’re interested in getting one, consider these factors when shopping for your new Air Miles credit card:
- Earn rate. The earn rate will determine how fast you can get your next reward. Note that credit cards with higher earn rates also usually come with higher annual fees and interest rates, so you should weigh these up when deciding.
- Points cap. Some cards impose a cap on the points you can earn each month, e.g. earn 1 point per $1 spent up to $500 and 1 point per $10 spent subsequently. Consider how this may impede your earning capacity.
- Bonus points offers. Getting a large number of bonus points when you sign up could be totally worthwhile because some introductory bonuses give enough points for you to instantly redeem a return flight. Don’t be so eager that you don’t consider the downsides of the card though, such as the high annual fee and interest rate.
- Partner airlines. Even if you’re an absolutely loyal passenger to your frequent flyer airline, it can be advantageous to have access to a large network of partner airlines. This is especially beneficial when you fly out further and require a variety of flight connections.
- Available rewards. Browse your frequent flyer store before deciding if it’s the frequent flyer program for you. This will ensure that you’ll truly enjoy the rewards you’ll be earning.
- Card perks. Air miles credit cards can come with a variety of complimentary benefits such as free travel insurance, airport lounge access, airport limousine services and personal concierge services.
- Annual fee. This can be a major cost when it comes to air miles credit cards, with the annual fee often directly correlated to the earn rate and perks offered by a card. Make sure you’re not paying for perks you don’t need or won’t use.
- Interest rates. As with all credit cards, card interest rates are important if you intend to carry a balance. If you make regular repayments and always pay in full, this will be less important.
- Other fees. It’s always good to know exactly what you’re signing up for and what you may someday be charged for. Pay attention to fees like the cash advance fee, foreign transaction fee (especially if you plan to use the card overseas) and any other possible administrative fees.
The most regular way to earn miles on your card is by charging eligible purchases to it. Eligible purchases typically include ordinary purchases and exclude cash advances, balance transfers, interest, fees and government payments, but you should read your credit card Product Disclosure Statement or contact your credit card provider to clarify.
Many Air Miles credit cards also offer bonus points on sign-up that offer additional points when you sign up for an introductory offer. Be aware that you may have to do something to activate the offer and receive your points, e.g. spend $500 in the first month to receive 10,000 bonus points. As well as bonus points on sign-up, some card issuers offer bonus points for existing customers during promotions. American Express, for instance, awards bonus points to card members for successfully referring friends and family members. Some card companies also have partnerships with other stores and businesses, so you can earn extra points when using your credit card at their stores.
You can also get your partner or family members to help you earn air miles by giving them a supplementary card. You can easily double or triple your earn rate this way, but it’s important to remember that you’ll be accountable for all purchases made on the additional card.
Once you’ve used your card for a while, you can exchange any accumulated points for rewards via your frequent flyer program. You can typically redeem your points online or over the phone by contacting your frequent flyer program customer service team. Keep in mind, you don’t necessarily need to have the full amount of points for the reward you want as most frequent flyer programs allow you to pay for rewards with a combination of points and cash.
The main purpose of frequent flyer programs is usually flight redemptions. Although nowadays you can redeem almost anything via the frequent flyer store, flight redemptions still usually offer the greatest value in terms of dollar per point. You can usually use your points to redeem flights with any of your frequent flyer programs partner airlines, although some routes and seat classes may be excluded.
Additional rewards you can get with your miles and points may include the following:
- Travel packages. The range of travel rewards has extended to include travel packages and vacation packages, so your frequent flyer store can now be your one-stop shop when it comes to vacations.
- Hotel accommodation and car rental. Frequent flyer programs now extend to your full travel needs. You can book your overseas hotel stay and car rental using your points at the same time, which can be done when booking through your frequent flyer website. If not, you might also need to provide your frequent flyer number and elect that you’d like to pay with points when making the booking.
- Products from the rewards store. Frequent flyer stores these days appear more fully stocked than department stores, with their wide range of clothing, jewellery, homewares, electronics and toys. These online stores can usually be accessed through your online frequent flyer account.
- Lifestyle rewards. You can even spend your points on theme park tickets, concert tickets, wine and restaurant dining.
- Shopping and gift cards. Most frequent flyer programs have large retail partners, so you can exchange your points for store vouchers either to be used online or at their bricks-and-mortar outlets.
As a general rule, make sure your Air Miles credit card gives you more value than it costs. A simple way to calculate this is by adding up the value of rewards you’d receive in a year and comparing that with the amount of fees you’d pay each year. While air miles credit cards may be a great idea for some people, they’re not for everyone. When making your decision about which credit card type to choose, make sure you consider your personal needs, lifestyle and spending habits.