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Frequent flyer programs come with many perks that make travelling convenient. With most programs boasting a wide range of ways to earn points, it is vital to compare which program will give you the best value for money. These are the 4 factors that are critical when comparing reward points in a reward program.
Check if your points come with an expiration date
Having a frequent flyer card that boasts a great deal of being able to gain a large sum of bonus points that can be redeemed in more than one way can mean nothing if you only realise once it is too late that your points come with an expiration date. This could leave you with little to no time to redeem your points which can be a waste.
Before joining a frequent flyer or reward program it is important to check if your points come with an expiration date. This will vary from program to program. Therefore, comparing your options can reveal the most suitable option for you.
Some frequent flyer programs set the expiration dates ranging from 18 months, 24 months and 3 years at most. This means that if you do not redeem your points during this time frame they will expire (https://www.finder.com.au/frequent-flyer ).
Know the point value of your card
The value of points will depend on which credit card you own. This could be anything from 0.5 points for every $1 spent up to 2 points for every $1 spent. There is also a spend requirement that is generally required in order to unlock these points which is why it is vital to check if the spending requirements are suitable for your spending habits. The way you choose to redeem your points also vary in value based on what you are redeeming it for. You will find that you are able to get the most value for your points by redeeming it through flights than spending it on the ground. Therefore, checking the terms that come with your reward program is essential.
Beware of point caps
This may appear to be a limiting feature that some reward cards and frequent flyer programs have. A point cap basically means that you are only able to earn a certain amount of points. This basically means that you are able to earn a certain amount of points for your monthly or annual spending. Anything beyond this can mean a waste of your finances as you won’t be able to gain points for it.
Read the fine print when it comes to bonus point offers
There are many cards on the market that boast huge bonus points offers that can be enticing. However, before you take out a card due to such features check the fine print. There could be a hefty annual fee or spend requirement that is attached to it that can cancel the overall value of the points. You could find yourself overextending yourself and your budget trying to unlock the bonus point offer.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
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