Money Management

You might be surprised at the list of perks you can enjoy as an elite flyer. Read on to learn more. 

To be perfectly clear, the perks that come with frequent flyer status are airline dependent. Most airlines have some sort of elite status program, and the benefits can vary dramatically between airlines, and even within an airline’s different status tiers.

With that in mind, here’s a list of some of the most common benefits airlines offer to their elite status customers, and what they could be worth to you. Again, not all of these are offered by every airline’s loyalty program, but you can expect at least some of them if you achieve elite status.

Benefits of achieving elite frequent flyer status

Frequent flyer status could be more worthwhile than you realize.

1. Mileage earning bonus

Elite flyers often earn more frequent flyer miles and more status qualification points than general travelers. They might even get bonuses for credit card spending.

2. Priority boarding

Depending on the airline’s policies and your status tier, travelers with elite status generally get to board the aircraft before the general boarding starts. For example, American Airlines boards in nine groups, with members of its four publicly available elite tiers boarding with groups 1-4.

3. Free checked bags

It’s common for those with elite status to get free checked bags. Those in higher tiers might even get more than one. And this benefit typically extends to other people traveling on the same reservation.

4. Complimentary upgrades

Based on space, airlines often give their elite status members complimentary upgrades to business and first class on domestic flights.

5. Reciprocal airline status

It’s common for partner airlines to give status benefits to an airline’s frequent flyers. For example, American Airlines elite status also gives benefits on Alaska Airlines and JetBlue.

6. Rental car or hotel status

Some airlines partner with rental car companies or hotel brands to give their frequent flyers elite status benefits.

7. Free premium seats when booking

While first-class upgrades aren’t guaranteed for frequent flyers, many airlines have premium main cabin seats that typically cost a little extra (such as seats in exit rows or towards the front of the plane. With elite status, you may be able to select a premium seat with no upcharge.

8. Complimentary alcoholic beverages and snacks

Some airlines’ frequent flyer programs allow those with elite status to order alcoholic beverages or premium snacks in main cabin seating, with no additional charge.

9. Dedicated customer service lines

This is one of my favorite perks of elite status. Frequent flyers often have a separate customer service line to use with dedicated representatives and much shorter wait times.

10. Priority check-in at the airport

Although you can check in at a kiosk in most airports, if you need to check a bag or need the assistance of an airline representative, the priority lines can be much shorter.

Additional rewards

Many airlines have other travel rewards for hitting certain status or spending milestones. These can include perks like lounge access day passes, discounted flights, systemwide upgrade certificates that can even be used on long-haul international flights, the ability to gift elite status to someone else, and more.

What is frequent flyer status worth?

As you can see, the value of frequent flyer status depends on how much you take advantage of the benefits and how you travel. For example, if you tend to travel on less-busy routes, you’re likely to get seat upgrades more frequently than someone who regularly flies on routes with lots of business travelers or during peak travel times.

Having said that, even a lower level of elite status can be more valuable than you think. According to travel website The Points Guy, AAdvantage Gold status (American Airlines’ lowest tier) is worth $585 per year to the typical traveler, just to name one example. But depending on your personal finance situation and travel habits, elite status could be even more valuable.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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New year, new financial attitude? Keep reading to learn why cash advances still aren’t a good way to borrow in the new year. 

When it rains, it pours. You accidentally hit a fire hydrant with your car. Now you’re staring down a $500 insurance deductible, and unfortunately, you’re also one of the 63% of working Americans who can’t cover a $500 emergency expense (as found by SecureSave). What should you do now?

If you’ve got a credit card, you might be considering borrowing against it in the form of a cash advance. This is when you use your credit card like an ATM card and physically pull out cash that comes from your credit limit. Unfortunately, this isn’t an ideal way to borrow money. Let’s take a closer look at why cash advances should be avoided if you have an emergency expense pop up in 2024.

1. You’ll be charged a higher APR

Credit card APRs (annual percentage rate — the amount you’ll pay in interest over a year) can be frightfully high. I took a peek at go-to APRs for the best credit cards, and the lowest one I found was 17.24%. Ouch.

But as high as the APR on credit card purchases is, the APR on cash advances is even higher. I did some investigating, and signed into one of my own credit card accounts to see what the difference is between my card’s purchase APR and its cash advance APR. For purchases, it’s 21.24%, which still isn’t great (it is excellent motivation not to carry a balance on this card, however). But if I were to take a cash advance, the APR on it would be a whopping 29.99%.

And to add insult to injury, cash advances have no grace period, like a regular purchase does. I’d start accruing that interest immediately, and would have to pay it even if I paid off the amount I took as a cash advance by the next bill’s due date.

2. You’ll be charged a fee — and earn no rewards

On top of the higher APR you’ll face for a cash advance, you’ll also be charged a fee for the privilege of extracting cash from your credit card. The fee often amounts to 3% to 5% of the cash advance you take out. While you might be trying to spend enough on the card to earn a sign-up bonus (or even just take advantage of the chance to earn cash back or rewards on your spending), a cash advance won’t count toward these credit card perks.

3. You may not be able to borrow enough money this way

Finally, another reason to avoid cash advances in 2024 (and indeed, future years) is that you’re limited in how much money you can borrow as cash from your credit card. Remember the card I mentioned above, that has a noticeably higher APR for cash advances than purchases? I also took a peek at how much I could take out as a cash advance and my cash advance limit is a mere 5% of the total credit limit on the card. Depending on your credit card’s limit, a cash advance might not be enough to cover the emergency expense you’re hoping to pay with it.

How can you borrow a small amount in a hurry?

So, cash advances aren’t a good idea. But what if you need a relatively small amount of money in a hurry? A personal loan might not be a fit — the best lenders write loans of at least $1,000 (and many of the best lenders have higher minimums). And you definitely don’t want to tangle with payday lenders — there’s a reason payday loans are illegal in 16 states, plus Washington D.C. These lenders are predatory and the interest rates are so high (like, 400%-APR high) that borrowers can easily end up trapped in a cycle of debt.

What’s the alternative? You have a few options. If you are fortunate enough to have kind family or friends who will float you a small loan to see you through, see if that’s a possibility. Put your loan agreement (and repayment terms) in writing, and do your best to repay the loan if someone does you this favor.

Another option is a small dollar loan from your bank or credit union. These often range from $100 to $1,000, and the money can be delivered to your account quickly. You’ll be charged a fee and interest for the service, but that interest will be far less than what you’d incur on a cash advance. If you’re a member of a credit union, you might also hear this means of borrowing called a payday alternative loan, or PAL.

Finally, there may be a better way to get money from your credit card, and that’s a credit card loan. This also has you borrowing against your credit limit, but it comes with more favorable terms than a cash advance. Borrowing in this way could push your credit utilization ratio up to unfavorable territory, however, which could ding your credit score.

If you’re in a bind, you might assume that a cash advance is the best and easiest way to borrow. I recommend avoiding them whenever possible, though — in 2024 and beyond.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Teens are some of the most expensive drivers to insure. But these nine companies offered them some of the most affordable rates this year. 

Young drivers have some of the most expensive auto insurance premiums in the nation, with the average costing nearly $6,300 in 2023. It’s understandable, due to the higher frequency of accidents among young drivers. But that doesn’t make it any easier for teens and their parents to stomach when the bill comes due.

Fortunately, not all insurers charge teen drivers quite this much for coverage. We crunched the numbers and found the nine car insurance companies that offered the best rates to young drivers in 2023.

The nine companies with the best car insurance for teen drivers in 2023

The following nine car insurance companies had the lowest average annual premiums for teen drivers in 2023:

COUNTRY Financial ($2,639)American Family ($3,319)USAA ($3,557) *GEICO ($4,459)Travelers ($4,726)Erie Insurance ($4,796)Nationwide ($5,621)State Farm ($5,692)Auto-Owners Insurance ($5,891)

* USAA auto insurance is only available for active-duty military members, veterans, and their families.

It’s important to recognize that these are just averages. The actual rates these companies offer a teen driver could be quite different, depending on factors like the driver’s location, their accident history, and their vehicle make and model. It’s also reasonable to assume that rates with all companies will be slightly higher in 2024 due to inflation.

How teen drivers can score great rates on car insurance in 2024

All of the above rates were based on a single driver profile. Each company evaluated that profile uniquely, which led to wildly different quotes. That’s why shopping around is crucial before purchasing an auto insurance policy. Comparing policies is the only way to know which one offers the most coverage at the most affordable price.

Some companies offer more teen-specific discounts, which could also affect affordability. Some insurers give discounts to students with good grades, for example, while others may offer savings to teens who complete a driving course. More discounts don’t always translate to a lower rate, but keeping an eye out for teen-related savings opportunities is still a good idea.

If parents are willing, keeping a teen on their auto insurance policy will likely be more affordable than the teen purchasing their own policy. This may enable them to take advantage of discounts, like bundling discounts, they wouldn’t be able to claim on their own.

Finally, opting for a higher deductible is another way to lower premiums. However, this does increase out-of-pocket costs in the event of an accident. Families who go this route may want to save for the deductible in an emergency fund so they’re prepared if an accident occurs.

Even after taking all of the above steps, car insurance for a teen driver will probably still be more expensive than insurance for older drivers. There’s not much families can do about this, other than to be patient and try to drive safely. As the teen ages, their insurance rates will automatically start to come down as long as they don’t have accidents or tickets on their records.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More