It is becoming easier to find credit card companies that have joined the frequent flyer programs, which are points credited to the card as you shop. Want to know how to credit card miles work? We explain it to you.
Credit Card Miles
Most cards are already associated with a loyalty program, so there is no charge for the service. However, the annuities of these cards are usually higher than those of cards that are not linked to miles programs. This feature is very suitable for consumers who love and travel by plane and this higher annuity pays off, because the points earned through their purchases can be exchanged for area tickets.
To use these accumulated points, you must first join the loyalty program of an area company with which your card has a partnership. For example, to transfer points from your “A” credit card to the “B” miles program, you first need to sign up for the loyalty program of the area company that offers the “B” miles program.
Today there are numerous miles programs, the most popular of which are TAM Loyalty and Smiles. To sign up for one of them simply look for their partners.
How Mileage Accrual Works
Accumulation of convertible mileage credits is based on the amount of your invoice and since miles can be exchanged for international air tickets, which are usually priced in dollars, this amount is converted to dollars.
It goes something like this
Your credit card bill this month came to $ 1,500 and the dollar is costing $ 3.00. The calculation is quite simple: just divide the invoice value by the dollar value, which in this example the result will be $ 500, which means 500 points in miles, since for each dollar spent you earn 1 point.
On those credit cards that carry the loyalty program brand printed this dollar / mile ratio is higher. It can range from 1.3 miles to even two miles per dollar spent.
Conversion of points to miles
This is in line with the loyalty program you have joined, but usually the transfer is made through the companies’ own website quite simply. Some cards have a minimum point limit to convert. Therefore, it is important to carefully read the rules of your card.
These miles are valid for use but again depend on your loyalty program. In some programs this validity is shorter than 2 years, for example, in other cases it may not expire while your card is active.