So You Want to Get Free Airline Tickets: Should You Choose a Reward or Cash Back Credit Card?

If you want to use a reward credit card for getting free airline tickets, you have a choice of choosing a dedicated airline credit card, a travel reward credit card or a cash back credit card. A dedicated airline credit credit card has hefty annual fees and may not be worth it if you are not a very frequent traveller or do not spend enough on your credit card.

If you decide to get either a no annual fee travel reward or cash back credit card, how would you decide which is better? This article examines how you should go about making this decision.

Let us assume we now have one reward credit card and one cash back credit card to choose from. The reward credit card pays one point for every dollar you spend on purchases. The cash back credit card pays a 1% rebate. Essentially, they both have identical payout formula of 1%. Let us assume both have no annual fee (very realistic) and both have identical apr. Would there be any difference between the two credit cards? Should we be indifferent? How do we decide which is better?

How much does your typical vacation airline ticket cost?

The most important factor that in this decision is actually the average cost of your airline ticket when you take your vacation. Why? Because most travel reward program (in fact, most frequent flyer program) require that you earn 25,000 miles or points to redeem a roundtrip restricted economy ticket within continental US. You are required to purchase the ticket either through the specific airline directly (in the case of a specific frequent flyer program) or through the reward program's agent. If you have a cash back credit card, 25,000 points will get you a $250 cash rebate (assuming a 1% formula).

But we all know that a domestic economy ticket cost can vary anywhere from about $99.00 to $350.00. If you are flying short haul, you can get a $99.00 ticket from a low cost discount carrier. If you fly from coast to coast, you are likely to have to folk out over $300 for a ticket. If you use get a special deal from expedia or priceline, you may get it cheaper.

Choose a cash back credit card if you airline ticket cost less than $250

Hence, it is very important to know your vacation habits. Where do you tend to go for your vacations? How much does your average airline ticket cost you? If you tend to fly short haul to a nearby place for your vacation and your airline ticket cost about less than $250 (say for example $150), you are better off using cash rebates from a cash back credit card. This is because you only need to spend $15,000 on your credit card to get a $150 cash rebate. Spending $15,000 on a reward credit card only earns you 15,000 points, not enough on most reward program to earn a free domestic economy flight.

Choose a travel credit card if your airline ticket cost more than $250

However, if you fly long distance (New York to LA for example) and your airline ticket tends to cost over $300, then using a reward credit card makes more sense. This is because if you use a cash rebate credit card, you need to earn over $300 in cash rebates (ie spend over $30,000). However, with a regular reward program credit card, you only need to spend $25,000 to earn your 25,000 points.

So if you tend to take vacations that require long haul flights that cost more than $250, use a travel reward card. If your vacation flights cost less than $250, use a cash rebate credit instead. Some reward program only require 22,000 points to redeem a domestic roundtrip flight. In that case, use $220 or 22,000 points as your guide when you are choosing between a travel or cash back credit card.

Nick Lian
http://www.compare-apply-credit-card-online.c om
Credit Card Tips, Articles and Reviews for those looking for a credit card

Certified Aviation Services (CAS) Acquires Air Services - LAX
PR Web (press release), WA - 1 hour ago
Certified Aviation Services is pleased to announce the recent acquisition of Air Services - LAX. The addition of their line maintenance capablities with our ...

Times of Nigeria
Aviation Scam: Borishade, Iyayi Others Get Bail
THISDAY, Nigeria - 13 hours ago
An Abuja High Court yesterday granted bail to former aviation minister, Babalola Borishade and four others charged with misappropriation of N6.5 billion ...
Nigeria: N6.5 Billion Aviation Scam - Borishade, Iyayi, Others Get ... AllAfrica.com
N6.5bn Aviation Contract: Abuja court grants bail to Borishade, Iyayi, Vanguard
Court grants Borishade, others bail The Punch
The Punch - THISDAYall 19 news articles

Times Now.tv
GE Aviation helps parent stay aloft in 3Q
Bizjournals.com, NC - Oct 10, 2008
Segment profits from Technology Infrastructure, which includes Evendale-based GE Aviation, were up 2 percent to $1.9 billion. Higher profits at GE Aviation ...
GE Rises Most Since 1980 as Profit Meets Estimates (Update1) Bloomberg
GE 3Q profit off 22 pct, but meets lower forecast The Associated Press
GE profit slumps, but keeps within forecast range AFP
Investor's Business Daily (subscription) - Trading Markets (press release)all 466 news articles

Nigerian civil aviation authorities to shut Kaduna Airport
Xinhua, China - 17 hours ago
LAGOS, Oct. 11 (Xinhua) -- The Federal Airport Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA), the country's civil aviation ...
FAAN closes Kaduna Airport tomorrow Nigerian Tribune
FG shuts Kaduna Airport Vanguard
all 4 news articles

Ozarks First
Local Aviation Company Deploys to Iraq
Ozarks First, MO - 10 hours ago
They're part of the 1-185th Theater Aviation Company, and will be flying night missions just north of Baghdad. The detachment trained in West Virginia and ...
More Ozarks Troops Headed to Iraq KSPR
all 2 news articles

AVIATION WEEK's Fall/Winter 2008 World Aerospace Database Now ...
MarketWatch - Oct 10, 2008
WAD's Fall/Winter 2008 edition includes business-critical information on more than 22000 civil, military and space aviation companies; 69000 personnel; ...

Neb.-based Duncan Aviation expands to Provo
Salt Lake Tribune, United States - Oct 10, 2008
Duncan Aviation says it will be opening an aircraft maintenance base in Provo, Utah, next summer. It will be the third major facility for the Lincoln-based, ...
Provo Airport to Gain Service Facility BYU Newsnet
Major aircraft repair firm to bring 650 jobs to Provo Daily Herald
Utah lands an aircraft service firm Deseret News
Salt Lake Tribune - Salt Lake Tribuneall 20 news articles

Nigerian Tribune
Nigerian aviation: Not yet uhuru
Nigerian Tribune, Nigeria - 10 hours ago
SHOLA ADEKOLA, in this piece, delves into some issues which has impacted on the aviation industry within the period, suggesting a better way out before the ...
I quit when dogs started eating dogs in PDP –Basorun The Punch
all 2 news articles

More aircraft noise for Sydney residents
Sydney Morning Herald, Australia - 5 hours ago
The larger runway safety area is a mandatory safety requirement set by the Civil Aviation Safety Authority (CASA) and meets international aviation standards ...
Runway construction takes off... flight noise comes in to land Sydney Morning Herald
all 27 news articles

Flying Training Courses in Australia - With or Without a degree in ...
Sunday Times.lk, Sri Lanka - 12 hours ago
Civil Aviation is not only about flying an aircraft - it also requires an understanding of the fundamentals of aerodynamics, aircraft power plants and ...
AAC offers a Foundation Degree Sunday Times.lk
all 2 news articles

Essential Oil Skin Care Tips for Frequent Fliers

Are you one of those people that has lots and lots of airline miles, so... Read More

Cleaning Air Cargo Containers

If you own a pressure washing business, janitorial service or truck washing business you owe... Read More

Private Jet Ownership Indeed

Wouldn't you like to own your own private jet? Have you ever thought about it?... Read More

What Causes Jet Lag?

Jet lag is a common sleep disorder suffered by many millions of travelers every day,... Read More

Entering Business Aviation, Part IV: Crafting a Resume

Writing a résumé can be one of the most daunting parts of any job search.... Read More

Cactus Fly-In, Casa Grande AZ

Every year in Arizona is the Cactus Fly-in which is one of the largest events... Read More

Inflatable Aircraft Wing Camber Modification

Every aircraft is a compromise. It is either built to fly fast or slow to... Read More

Young Men Trying to Imitate the 9-11 Scenario, Part IV

In conclusion of this young man who crashed a single engine Cessna 152 into the... Read More

Find Cheap Tickets From all the Major Airlines

All of the major airlines are now associated with different web sites allowing for you... Read More

Young Men Trying to Imitate the 9-11 Scenario, Part I

Why did the young man near Tampa, FL fly a little private aircraft into the... Read More