What's the best credit card miles program?

Posted at 04/27/14 1:00 PM

MANILA, Philippines – The best way to avail of free flights through rewards programs is not to accumulate miles, but to spend, financial adviser Salve Duplito said.

On ANC’s “On The Money,” Duplito said the best credit card miles program is the P2 per mile promo, which kicks in after the card user spends the first P20,000.

She said the promo, which is only offered from April 1 to May 31, “is the best conversion rate” among the other promos.

Other miles programs that offer good deals are the P6 per mile under rewards accelerated program; regular mileage program of P30 per mile; P38 per Asia mile program; P40 per mile program; and P45 per program.

To enjoy these perks, however, credit card users need to charge a high volume of transactions monthly and pay a higher annual fee.

Minimum spending is around P6,000 to P20,000 per month.

But Duplito warns that increasing spending just to chase rewards is “a bad financial decision.”

“The cost of paying the interest will wipe any gains. But if you have high volume transactions monthly which you can pay for in full, then you can truly take advantage of these perks,” she said.

She also advised credit card users to beware of tricky advertisements on miles programs.

“Credit cards can give you nice treats but you can only benefit from them if you take the time to understand the perks and more importantly, you have to pay your bills in full,” she said.

Duplito also noted that if users spend beyond their means, all these benefits will be lost because of interest.