Air miles Definition Bankrate.com Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content

Air miles

You need to understand what air miles are. Here’s what to know.

What are air miles

Air miles are a reward issued by credit cards affiliated with airlines. The holder of the card earns air miles with every purchase.

Deeper definition

Credit card companies partner with major airlines to offer credit cards that reward customers for spending. Some companies reward customers with a designated amount of air miles for opening the credit card. Others allow customers to earn bonus miles based on their spending in certain categories. Once you have accumulated enough air miles, you can turn them in for an airline ticket. How you accumulate air miles varies based on the terms of your credit card. When it’s time to redeem your air miles, you must select an eligible flight. Some air miles programs have blackout dates. You cannot redeem your miles for travel during this time. These dates are usually around major holidays when air travel is at a high. Many that reward air miles have an annual fee. Be sure to consider the fee when deciding if a card is a good deal. To get the most value from your card, pay it off every month to minimize your interest costs.

Air miles example

If you’re searching for a way to make travel more affordable, a credit card that issues air miles is one way to earn a free flight. Assume that your credit card requires 25,000 air miles for one domestic round-trip ticket. When you apply and secure approval for the credit card, you receive a one-time bonus of 5,000 air miles. You receive 10 air miles for every dollar you spend on air travel and two air miles for every dollar spent elsewhere. Over a period of six months, you spend $1,200 on air travel and $12,000 on other purchases. You earn 12,000 air miles thanks to your air travel and 12,000 air miles from your other transactions. Your total miles now equal 29,000, more than enough to earn a free flight. Need to pay for your flight out-of-pocket?

More From Bankrate

Commuting not only takes time out of your day, it can take a chunk out of your wallet Military credit card benefits can help eligible military personnel save money. Find out which of these retail credit cards is right for your wallet. Your best credit card option may depend on your monthly spending habits. Watch out if you’re planning to return a purchase; some retailers have begun charging fees for the privilege The Sam’s Club Mastercard helps you earn cash back rewards on groceries and gas. Bankrate has been tracking credit card rates since 1985 and they’ve never been higher. Small Business Saturday encourages consumers to shop locally. Here’s how your business can get involved. Here’s why 50% of Americans say they will shop on Small Business Saturday.