Airline Points 101: How You Get Them & How You Use Them

(If you travel for your company, you probably know these basics, so skip ahead to the link at the end of this article. Otherwise, read on...)

Airline points are currency. You can use points to fly free.? Some airlines call them miles, but most people call them points.? The most common way to get points is by flying and by using travel credit cards.

Airlines give you points when you fly.? An airline has a loyalty program that encourages you to consistently fly with them, so that when you accumulate a lot of points, you get a free flight.??

Credit cards specifically targeted for travelers give you points when you sign up for a card, and points for each dollar you spend with the card.? When you accumulate a lot of points, you get a free flight.? A typical flight award costs about 20,000 points for a free domestic flight within the US, but they can be as low as 5,000 points or up to 100,000 points.

In the simplest form, airlines issue 1 point per mile, and credit cards issue 1 point per dollar.? That 1 for 1 ratio or payment is referred to as 1% or 1X.? However as you might have guessed, that’s just the tip of the iceberg.? Beginner users of points may be looking to just get that first free flight.? Advanced travelers might be strategizing on how to fly the family to Europe in First Class with lie-flat beds.

I sold my company so they are not paying me to fly anywhere anymore. I fly just a couple of times a year. Most of the time I fly in business or first class. I use miles and points to "pay" for my ticket, so I don't get free airline miles that way. Still my wife and I have millions of miles cause we know how to get them from credit cards.

With the right credit cards, you can fly business class and fly free.? More PointsPaul lessons are coming.

• Here's some of my travel adventures that I've taken using credit card points and miles
• Find out what the right credit cards are for you.
• Explore many different ways to earn points ,