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Revealed: who offers the best scheme, how much is a mile really worth and where to earn in addition to flying with the airline - all this and more.

The best air miles credit card

First up: so who offers the best air miles credit card?

The best rewards scheme always comes down to the individual cardholder: their spending habits and the suitability of earning those rewards.

However, for general holidaymakers, Avios is probably the most flexible flyer mile scheme, offered on both the Lloyds TSB Avios Duo credit card, through Tesco Clubcard (both formally offered Airmiles) and via British Airways (formally BA miles).

Which is better? We've broken this down fully in an article on converting Tesco Clubcard points to Avios here, but the basic details of the cards are:

Lloyds TSB Duo Avios credit card
	Avios miles 1 Avios for each £1 / £5 spent	Apply here »
Representative Example: 15.94% p.a. variable on purchases. This is equivalent to 15.9% APR representative variable based on a credit limit of £1,200. Lloyds TSB Bank plc, Registered Office: 25 Gresham Street, London, EC2V 7HN.

Tesco Clubcard credit card
	Tesco Clubcard points 1 Clubcard point for each £4 spent	Apply here »
Representative Example: 16.9% p.a. variable on purchases. This is equivalent to 16.9% APR representative variable based on a credit limit of £1,200. Tesco Bank, PO Box 5747, Southend on Sea, SS1 9AJ.

For heavy flyers, such as business travellers or those who simply do a lot of cross-atlantic jetsetting, a dedicated airline card may offer better rewards.

Not only will they allow a greater number of points to be earned, chances are if you're looking into one of these cards you may already be part of the scheme and with that comes travel perks such as priority check-in and access to airport lounges, as well as flight upgrades and companion tickets.

One of the most prestige airline credit cards is the British Airways Premium Plus credit card.

British Airways Premium Plus credit card
	Avios miles up to 3 Avios Miles for each £1 spent	Apply here »
Representative Example: 19.9% p.a. variable on purchases. This is equivalent to 50.1% APR representative variable based on a credit limit of £1,200 and including a £150 annual fee. American Express Services Europe Limited, Belgrave House, 76 Buckingham Palace Road, London, SW1W 9AX.

There are of course many other options, some more can be found in the air miles credit card comparison here.

How do air miles credit cards work?

What exactly are air miles?

Like any other points-based reward system, air miles are largely accrued in return for card spending and, increasingly, in return for signing up as part of initial bonus offers.

Holiday spending such as flights, hotel stays and car hire purchases - particularly with the named airline, if there is one - generally earn more air miles.

The rewards available to air mile credit card holders have increased too: frequent flyer program partners include brochure holidays, hotel stays, car hire, cruises, airport parking and days out as well as airline flights.

So what makes the best air miles credit card?

Just two things: earning potential and suitability.

The best credit card for airmiles will be the one that allows you to rack up the points without significantly changing your spending habits. In addition, it will also be the one that offers rewards you ideally already pay for.

While the actual worth of an air mile does vary between frequent flyer schemes, each air mile you earn will have a value within the scheme and the more air miles you collect the bigger the reward you will be able to claim.

Earning air miles

Spending on an air miles credit card

As with other reward schemes, air miles credit cards only earn points for purchases.

Cash withdrawals, balance transfers, charges and payment of interest or fees won't earn any air miles.

However, note that air miles credit cards aren't the same as use abroad credit cards and foreign transactions made on these cards may be expensive.

Bonus miles

Often credit card providers offer an incentive to sign up in the form of air miles earned with a first purchase or by reaching a spending target within the first few months. This is sometimes even enough for a first free flight!

For example, the British Airways Premium Plus credit card [click through for cost of credit] currently offers 18,000 bonus Avios when cardholders spend £3,000 within the first 90 days.

That's enough for two return flights in Avios Zone 1 (to Germany, for example) with the addition of the scheme's £27 flat rate.

Flying with the named airline and/or its partners

As a member of a frequent flyer program you will also earn points every time you fly with that airline and its partners.

Partner airlines will be specified somewhere in the contract details, and it goes without saying that you should find out if there are any. Additionally, they can sometimes be earn-only or redeem-only partners.

And don't forget to use your air miles credit card to pay for the purchase - this way you will earn miles on both the flight and on the cost of the flight.

Converting loyalty points

If you have a Tesco loyalty Clubcard - or even a Tesco Clubcard credit card [click through for cost of credit], for instance - your Tesco points can be transferred for frequent flyer miles with Avios.

We've covered this topic more specifically in our guide to Converting Tesco Clubcard points to Avios.

Also be on the lookout for partners like car-hire companies, hotel chains and others who may be part of your air miles scheme - the number of ways to earn frequent flyer miles is always growing.

Redeeming air miles

Most air mile schemes will offer travel rewards including airline flights with the main airline and also with partner airlines, hotel stays, brochure holidays, city breaks, family days out and experiences, and other travel services including car rental and airport parking.

Air mile programs will usually have a web portal where you can log in and view how many miles you have, view offers, and book travel products.

You may also be able to redeem your miles towards a flight over the phone to flyer mile programs customer services / booking line.

Most programs will allow you to pay part cash, part miles, so even if you haven't quite reached the amount of miles you need for an upcoming trip, you can spend what miles you have on it, and pay the remaining balance with cash.

Travel perks

Frequent flyer membership

Air mile credit cards - where issued with a named airline - will usually offer automatic entry onto their frequent flyer program. Although, sometimes you may need to register with the scheme first and then supply the credit card issuer with the details of your membership.

Frequent flyer members often have access to exclusive customer services and benefits, such as priority check-ins, access to VIP airport lounges, special offers and discounts and free flight upgrades.

These programs usually have tiered membership levels, which offer increasing benefits the more regularly you fly.

Companion tickets and flight upgrades

Many air mile credit cards will offer added rewards for greater levels of spending.

These added rewards can include free tickets for companion travellers as well as flight upgrades when you claim a free flight or book a flight.

These added rewards usually required you to have reached a spending threshold in a year.

Always ensure you check the terms and conditions of any offers thoroughly.

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