Credit cards offering free flights: here's how it actually works

Aside from helping you to make purchases you may not be able to afford upfront, credit cards can offer an array of benefits, bonuses and rewards.

If you’re keen to use a credit card to acquire complimentary flights for a weekend away or perhaps your next overseas trip, there are commonly a few conditions that you’ll need to meet in order to obtain them.

These qualifiers often vary depending on the credit card. Additionally, you likely won’t simply receive free flights. Instead, you’ll likely be given frequent flyer points or travel vouchers that may be redeemed for airfares, discounts, upgrades, travel insurance and more.

It’s important to note that different credit cards offer different deals. Many are exclusive to a particular airline or rewards program and there may be limitations imposed on their use, such as availability constraints, reservation requirements, blackout dates, class restrictions and expiries.

Your rewards or frequent flyer credit card may also offer the ability to earn frequent flyer points on top of the sign-up bonus, allowing cardholders to increase their points earning potential.

What do you need to do to get free flights?

Some of the typical requirements you’ll need to meet to be eligible for free flights from a credit card include:

• Spending obligations: In order to secure most credit card perks, you’ll usually need to satisfy minimum periodical spending or annual fee payments. These will differ depending on the particular credit card you choose. For example, you may need to spend a total of $3,000 in the first three months following approval in order to qualify for any benefits.

• Application: Some credit cards that grant complimentary flights will require you to accept the offer before you’re able to book any actual airfares. These gratuities are customarily endowed on an annual basis, so make sure you secure any benefits before they expire. Be aware that most rewards attached to credit cards won’t be redeemable until after the first three or four months beyond approval.

• Check eligibility: There are likely to be provisions and conditions attached to any credit card freebies. You’ll probably need to consider when you can go, permissible destinations, cabin class restrictions, and which airline you can use. You may be required to be a member of, or sign up for, a specific frequent flyer program in order to be credited with the points necessary for flight redemptions. It would be sensible to lock in your flights before committing to things like accommodation, tours, restaurant reservations and other activities.

What’s the real cost?

While credit card companies advertise free bonus points, flight redemptions and other rewards as incentives to entice new customers, the costs of these benefits are often partially or wholly built into the card’s fees and rates.

That isn’t to say that all credit cards promising rewards aren’t good value. You’ll simply need to consider the costs and benefits associated with the various cards you compare to find out which is right for you.

Annual fees

The largest upfront expense you’ll incur is the annual fee. Some cards waive this payment for the first year as a bonus for new customers. This fee ranges from $100 to over $1,000. It may be worthwhile seeking out a card that has an annual fee equivalent or close to the cost of the complimentary airfare and any other rewards you’ll receive each year.

Interest rates and other costs

If you don’t make repayments on time, you’ll likely be charged interest on outstanding balances. While it’s advisable to avoid these costs, if they are incurred you may notice that interest rates and other fees, such as international transaction costs, associated with cards offering free flights are potentially higher than those that do not.

Do your research and read the fine print

Consulting the terms and conditions of your individual credit card can help you to understand the specific criteria you’ll need in order to claim any complimentary offers. It may also be helpful to phone or email your card provider to procure this information and ask any questions you may have.

Free flights, bonus points and travel vouchers shouldn’t be the only factor that determines which credit card you sign up for. Purchase rates, fees and income thresholds are just a few of the particulars you may want to consider before applying for a credit card.

It’s not uncommon for credit cards with generous benefits to have higher fees and costs than low-rate or low-fee cards. Compare your options carefully in order to determine which card is best for your personal finance needs.

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