The Basics

What’s the Deal with Mile Programs?

To start with, I would like to help you understand some of the method behind mile earning opportunities. There are a lot of credit card offers out there today that offer you a massive amount of miles just to sign up.  Most of these offers cost you absolutely nothing! They waive the fee for the first year of your card contract and give you a lot of miles. How are they able to offer something like that? How are they not losing money?

Ever since the credit crunch began a few years ago, credit card companies have been trying like crazy to get new customers. In order to attract those customers, the sign-up bonuses have grown larger each year. I remember a few years when I signed up for a credit card to get $100 check. I thought that was amazing! This year, I signed up for one credit card in which I received a total of 150,000 miles on an airline – the value of which can translate to a First Class ticket anywhere in the world. What happened?

Not only were the banks beginning to go through a difficult time, the airlines were also going through a time of difficulty. The fix those problems, the airlines began to sell a massive amount of miles to the banks to give the banks a carrot to attract the customer. In so doing, the airline gets the finances they need, plus customers that may have never used their product before.

When you learn what to do, you will be able to utilize these fantastic sign-up bonuses in a way that will let you pick the race destination you want!

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