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

---

Google News Updated : Thu, 24 Jul 2008 06:51:44 GMT "X-Files" movie both satisfies and disappoints - Seattle Times "X-Files" movie both satisfies and disappoints Seattle Times - 50 minutes ago Mulder and Scully are together again in "X-Files: I Want to Believe." The story may be silly, but the agents' romance is compelling as ever. The X-Files: I Want to Believe AU Review IGN Scully have I loved Salon Daytona Beach News-Journal - The State - The Star-Ledger - NJ.com - Youngstown Vindicator all 557 news articles Publ.Date : Thu, 24 Jul 2008 06:01:06 GMT Bashir Visits Darfur, Pledges Sudan Will Protect Relief Workers - Bloomberg Voice of America Bashir Visits Darfur, Pledges Sudan Will Protect Relief Workers Bloomberg - 4 hours ago By Paul Tighe July 24 (Bloomberg) -- Sudan's President Umar al-Bashir, indicted by the International Criminal Court for alleged war crimes in the Darfur conflict, visited the region yesterday and pledged to provide security for international relief ... Bashir returns to Darfur New York Times How Sudan Was Brought to Court TIME The Press Association - The Epoch Times - Voice of America - Times Online all 1,663 news articles Publ.Date : Thu, 24 Jul 2008 02:39:29 GMT Dynamo top United at soggy RFK - MLS - Major League Soccer The Money Times Dynamo top United at soggy RFK MLS - Major League Soccer - 1 hour ago By Charles Boehm / MLSnet.com Staff WASHINGTON -- After two aborted tries on previous dates, DCUnited and the Houston Dynamo finally completed the first of their two league meetings on Wednesday night -- and some of Thursday morning, ... Mullan, Ching power Dynamo over DC United 2-0 Houston Chronicle Dynamo outlasts United despite lengthy delay Seattle Post Intelligencer The Canadian Press - FC Dallas - Washington Post - United Press International all 144 news articles Publ.Date : Thu, 24 Jul 2008 05:07:00 GMT Powerful quake injures 92 in Japan - CNN Boston Globe Powerful quake injures 92 in Japan CNN - 2 hours ago (CNN) -- A strong earthquake injured 92 people and destroyed 31 buildings in northern Japan on Thursday, authorities said. People at an auto dealership in Karumai, Japan, clean up glass shards after a strong earthquake Thursday. Japan's North Hit by Magnitude-6.8 Quake; 95 Injured (Update3) Bloomberg Powerful earthquake hits Japan, dozens injured The Associated Press Jerusalem Post - Reuters - AFP all 766 news articles Publ.Date : Thu, 24 Jul 2008 04:51:37 GMT Oklahoma determined to have a strong finish - Fort Worth Star Telegram NCAAfootball.net Oklahoma determined to have a strong finish Fort Worth Star Telegram - 1 hour ago By MIKE JONES "Our whole mentality now is WTLG [win the last game]," Harris said Wednesday. "Come out and finish. It’s national championship or bust. Sooner, the better Topeka Capital Journal Players put success on Stoops Daily Camera SportingNews.com - Chicago Tribune - ESPN - Norman Transcript all 38 news articles Publ.Date : Thu, 24 Jul 2008 05:03:29 GMT Obama lavished with airtime -- and criticism - Los Angeles Times ABC News Obama lavished with airtime -- and criticism Los Angeles Times - 1 hour ago As the media moves to correct itself for glowing coverage of the Democrat, it's entering a period of shallow analysis. By ON THE MEDIA, JAMES RAINEY It seems like just about everybody has spent the last week beating up on the media for showering too ... Veterans group hits McCain on troop pullout The Associated Press 'Generation Gap' Widens in the 2008 Electorate Wall Street Journal Boston Globe - New York Times - CQPolitics.com - Right Pundits all 2,612 news articles Publ.Date : Thu, 24 Jul 2008 05:43:11 GMT Pittsburgh Cancer Center Warns of Cell Phone Risks - ABC News China Daily Pittsburgh Cancer Center Warns of Cell Phone Risks ABC News - 6 hours ago By JENNIFER C. YATES and SETH BORENSTEIN AP Writers AP The head of a prominent cancer research institute issued an unprecedented warning to his faculty and staff Wednesday: Limit cell phone use because of the possible risk of cancer. Red alert! The cellphone warning has been issued Los Angeles Times Pittsburgh cancer center warns of cell phone risks The Associated Press DetNews.com - USA Today - Julie's Health Club - Chicago Tribune Blog all 436 news articles Publ.Date : Thu, 24 Jul 2008 00:01:03 GMT Get Paid for Surveys Rss Feed Reader

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Learning to Fly

Flying is fun. I learned to fly myself when I... Read More

Entering Business Aviation, Part IV: Crafting a Resume

Writing a résumé can be one of the most daunting... Read More

Helicopters - The Multi Utility Machines

The vertical lift technology of helicopters has far more utilitarian... Read More

How to Overcome Jetlag

Jetlag seems to be every traveler's worst nightmare ? especially... Read More

De Ice Boots Preventative Care

If you have de-ice boots on your aircraft you realize... Read More

First Class Airfare: How the Rich Travel

Have you ever wondered what all entails first class airfare,... Read More

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

Why did the young man near Tampa, FL fly a... Read More

Automated Satellite Following System for UAV Swarms

Much work is being done and the USAF has implemented... Read More

Really Cheap Plane Tickets

To begin with, the best place to buy really cheap... Read More

Mexico to Manufacture Aircraft

It appears Mexico with its 120 million population is considering... Read More

Airbus to Build $600 Million Aircraft Manufacturing Plant in US

Airbus has announced that it will build a $600 million... Read More

Cleaning Air Cargo Containers

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

Entering Business Aviation, Part II: Pay Rates for Flight Attendants

Pay. You know that aviation pays better than commercial, in... Read More

Static Electricity to Flap UAV Material Memory Wings

How can we keep aircraft and UAVs aloft longer and... Read More

General Aviation Manufacturing is in the Tank; Hang On It is Going to Get Worse

Change is a constant, Outsourcing Jobs, Capital flows, Emerging Markets... Read More

Lockheed Loitering Missile Expandable Wing Concept

Smart Missiles are expensive, but effective. Efficiency in the the... Read More

Fuel Costs and Air Fares Set To Rocket After Hurricane Katrina Punishes The US

It now looks certain that Hurricane Katrina will push fuel... Read More

Sex in a Cessna, Part III

So far we have learned the safety aspect of setting... Read More

Cactus Fly-In, Casa Grande AZ

Every year in Arizona is the Cactus Fly-in which is... Read More

5 Tips for Stress Free Long Haul Flights

The world is becoming smaller by the day. Flying long... Read More

India Air Traffic Issues to Come

As India increases its economic growth the population is taking... Read More

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

What caused a teenager to crash an aircraft into the... Read More

Airport Travel Tips: Reducing Waiting Times

Key Travel TipsFollowing these tips will help you reduce your... Read More

A380 Bathrooms

Bathroom seat with a view; That's right! The all-new A-380... Read More

Boeing is Really Flying Now

The Boeing Company has completely blown past projections for aircraft... Read More