Can anyone explain the CC Miles programs (in general) to me?
 

I have started to look into getting a FF miles CC. Reason is that I plan on sending my kids to korea every couple years during the summers.

But I have wondered how the miles program works with credit cards and earning them. I seen many of them with a bonus miles when you first sign up (25k miles, etc), and earning anywhere from 0.5 miles to 1 per $1 you spend.

Am I missing something in how you get rewarded and then use the miles for tickets?

Trips from where I am (LAS) to ICN is roughly 12k miles roundtrip. With say a bonus of 25k miles alone, that is enough for 2 tickets?

Is there something I am missing? I notice most cards do come with an annual fee (first year waived). Do the miles you earn ever expire? And I assume the best way to get miles is to use a specific airline program?

Also, how do the tickets get purchased? do you have a choice with FC, Business, Economy?

I just wonder because it seems like a big bonus (way better than a reward such as 1% cash back, which to me, seems like it would be way worse than FF mile rewards?). I mean, 25k miles bonus, and a trip to korea is 12k miles, is enough for 2 tickets, and that could easily be $3000 if paid for myself?

There has got to be some conversion or silver lining in this that I am missing?

CC company is partnered with an airline (or hotel, etc)

CC puts miles/points in your airline accout and then you spend those miles/points thru the airline to get travel

Miles may or may not expire - that's program dependant. Most keep the miles active as long as you keep the account active (such as via periodic spending on the CC).

You can redeem bonus Credit Card miles just like you would redeem regular Airline miles.

The redemption ratio IS NOT 1 for 1, sorry about that...

Look on each airlines website to see what a NA-Asia ticket would cost... for example on AA, a RT in Economy to Korea would be around 50k Off-Peak, 65K Peak... in Business 100K and First 125K.... and that would per ticket, plus any Fees or Taxes

Here's a link to the Awards Chart http://www.aa.com/i18n/disclaimers/a...rtnerChart.jsp

Most US Airlines charge a similar amount of miles, except for Delta SkyPesos where the value of their miles is pegged to the value of yesterday's newspaper (aka they are almost worthless) hehehe

ohhh. So its not actual miles between where you are flying.

Makes alot more sense now. I was figuring the CC would have some transfer fee from miles into cash and that is where the "gotcha" was or something like that.

Thanks!

note that paid tickets can earn ff mi's & your family may go on paid tickets....

also, there may be a cc that gives ff mi on your preferred air line....

so you should try to direct the mi's to one airline and one cc...

but if another a/l has a much better price for a trip than your preferred one, be sure to join the a/l's ff program...

good luck...

There are three different kinds of credit cards that earn airline rewards.

1: Affinity cards associated with a specific airline or hotel chain. It earns miles/points in that airline's/chain's program. These are combined with miles/points you earn other ways, such as by flying. They can then be redeemed for awards according to that program's rules. Most major airlines and hotel chains have these. If you know what program you want miles or points in, these can be a good idea. Some offer a head start on elite status with the airline or hotel chain.

2. General cards issued by financial institutions that let you convert its points to any of several programs' miles/points. Typically cost more than the first kind (with exceptions; the Starwood AmEx costs less than many other cards) but offer more flexibility.

3. Cards issued by financial institutions that run their own programs. Their points generally cannot be combined with points from other sources, a big problem unless you spend a lot on that card. They aren't good for business or first class flights adn upgrades, since their redemption values are based on published fares. They can be a good choice if you charge a lot and are interested in economy class tickets.

Any of these can offer a bonus. Its value depends on the number that goes with it (all things being equal, 50,000 of something is better than 25,000 of the same thing) and on the unit (10,000 Starwood points are worth more than 20,000 Hilton points, just as 10,000 euros are worth more than 20,000 yen.) It takes a huge bonus to offset the drawbacks of having the wrong card for your needs, though.

If some of the information in previous posts or elsewhere on FT seems confusing, that may be because the poster assumed everyone knows what kind of card he/she was talking about. If you start by figuring out which of these three types is likely to be under discussion, it may be clearer.

you will soon be addicted.
just sign up for all the cards now

everything you earn on a mileage earning card gets poured into your airline account.

Not necessarily. Please see post 6.

Everything you earn on a Type 1 card goes into your airline (or hotel) account.

Everything you earn on a Type 2 card goes into your card issuer account. You must take action to move it to your airline account. Each card has a list of airlines to whose programs you can move it.

Everything you earn on a Type 3 card goes into your card issuer account. It cannot be moved to your airline account.

Again, let's be specific about the kind of card we're talking about. Not all cards that are marketed as earning miles/points work the same way.