Over the decades, airline credit cards have evolved along with common flyer programs. Initially, they offered simple bonuses for free flights, but now offer consumers more options, including transferable rewards and fixed-value points plans.
More and more airline credit cards make it difficult for consumers to compare their value. Furthermore, these cards are constantly changing in terms of benefits, bonuses and fees.
Given that, you might be wondering if an airline credit card is worth it, especially a premium credit card with premium annual fees.
However, there are still excellent airline credit cards and offer customized privileges to different types of travelers. So consider these factors before determining if an airline card is right for you.
Welcome discount
When evaluating your airline card, you need to make sure you find a favorable welcome offer. Please be aware of spending requirements and evaluate whether they are feasible.
For example, UnitedQuest℠ Card (See interest rates and fees) After spending $4,000 in the first three months of opening an account, it currently offers 100,000 reward miles and 3,000 Prime Minister Qualifying Tournaments (PQP).
As they change frequently, it is important to study and compare the value of different welcome quotes. This is a very welcome offer, so those seeking a mid-level joint card should not pass it on.
Finally, it is crucial to how you plan to use the miles you earn. While earning a large amount of points or miles may be important in itself, make sure the rewards you receive are aligned with your travel and redemption goals.
Related: Best Credit Card Welcome Offer of the Month
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Is the annual fee worth it?
Consider the annual fee for your card. Some airlines have no annual fees for credit cards. However, these are exceptions, not the norm. These cards can be suitable for travelers who occasionally want to accumulate mileage cheaply without prioritizing travel days’ treatment.
At the high end, you’ll find cards that cost more than $600 a year. For frequent flyers that can take advantage of the added benefits, these expenses can be worth it, such as lounge access and spend-based elite qualified mileage or points.
The most popular airline credit cards charge $100 to $150 per year. Examples include AADVANTAGY®VAVIATIR® Red World Elite Mastercard® ($99 Annual Fee), JetBlue Plus Card ($99 Annual Fee), Southwest Rapid Repard Rewards® Premier Credit Card ($99 Annual Fee), and The United ℠Explorer Card (Annual fee of $0 for the first year, then $150; see Rates and Fees).
Some cards also offer anniversary bonuses to mitigate the blow of their annual fees.
When your annual fee expires, consider whether the allowance of your card offsets the cost of keeping it for one year. Please consider requesting to retain the offer before canceling or downgrading the card.
Information on Aadvantage Pilot Red, JetBlue Plus and Southwest Quick Rewards has been independently collected by Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: Best Delta Credit Cards
Which earning categories are important to you
In the past, airline cards and their related airline purchases tended to earn double miles. But to compete with non-air travel reward cards, many airline credit cards now offer more than a mile per dollar at various merchants, such as restaurants and grocery stores.
When considering a new airline credit card or evaluating the one you already have, check the bonus mileage category to see if they are consistent with your spending habits. For example, if you spend mainly on the grocery store, it’s not worth owning a card that earns 2 miles per dollar.
Some of the highest income people include United Explorer Cardearn 2 miles per dollar when it comes to hotels (direct booking) and dining.
this citi® /aadvantage®Platinum Select®World Elite Mastercard® (See Rates and Fees) Cards earn 2 miles per dollar at gas stations and restaurants, while JetBlue Plus cards earn 2 points per dollar at restaurants and qualified grocery stores.
Related: Best Reward Credit Cards for Each Bonus Category
Maximize travel benefits
Airline credit cards offer various benefits for travel, including exempt annual fees and money-saving allowances. These allowances can include free check bags, priority boarding bags and discounts on-board purchases such as food and Wi-Fi.
Even if you save only a few hundred dollars a year, it’s still worth it. These benefits are valuable depending on the extent you use them, and while some potential savings can seem huge, they may not apply to everyone’s lifestyle.
Related: Why I Don’t Care about Airline Elite Identity
Is there a way to be an elite?
Many travelers value airline elite status, and if you are close to a lack of it, using a common brand of airlines can help bridge the gap. However, only a few airline credit cards offer opportunities to enhance elites, often at high annual fees. But if you’re a flyer that often aims at the next status tier, it’s worth carrying an airline card.
For example, United Explorer Card You earn 1 pqp on every $20 spent using your card purchase, up to 1,000 PQPs in the calendar year. This can help you gain first place.
At the same time, the annual fee is higher United Club Card (See Interest Rates and Fees) For every $15 spent on using the United Club card, earn 1 pqp for up to 28,000 PQPs in the calendar year, and 1,500 bonus PQP per plan year.
If you are unsure of this gain or have already achieved the required elite identity independently, consider exploring another airline’s privilege of enjoying elite style when not driving a major operator.
Related: The Best Credit Cards to Achieve Elite Identity
Will airline cards provide companion tickets?
Carrying an airline credit card can provide great value through peer ticketing benefits. These benefits vary between airlines and cards, so it is crucial to see the details.
this Alaska Airlines Visa® Business Card Annual companion fares are available starting at $122 (tickets are $99 plus $23 taxes), and the annual anniversary is after $6,000 or more of the previous anniversary year. This gain alone can save you hundreds of dollars.
If you travel frequently with partners, family members, or colleagues, it’s worth considering cards with partner benefits to save a lot of cards.
Related: 42 Real-world Family Travel Tips
Pay attention to the depreciation of the reward chart
We recommend evaluating airlines’ frequent flyer programs to ensure their long-term value. Many programs, including Delta Skymiles, United Lileageplus and Alaska Mileage Program, have experienced significant devaluation in recent years.
Some airlines, such as Lufthansa Miles, and Singapore Airlines Krisflyer, have also changed their reward lists.
Many plans have canceled their rewards lists and now offer dynamically priced tickets. Before embarking on a new regular flyer program and applying for a credit card, examine how the program has evolved in recent years. This will help determine if the miles you earn from the welcome offer and the daily expenses will give you the travel rewards you need.
Keep application restrictions in mind
Major credit card issuers have imposed restrictions to prevent excessive card agitation, which may affect your ability to open a new card and receive a welcome bonus. Understanding these rules is important to avoid being rejected or not eligible for bonuses.
Chase’s 5/24 rule is well known and influences popular cards United Explorer Card and Southwest quickly reward the Prime Minister. Typically, if you have opened five or more personal credit cards (from any bank) in the past 24 months, Chase may not approve you to purchase a new card.
Amex has become more stringent on eligibility rules, especially for popular cards like the Delta lineup; for example, it limits reward eligibility to once per product. However, they have a welcome bonus tool that can check eligibility before applying.
Citi has specific restrictions on its Aadvantage cards. If you have turned on or off another Citi/AADVANTAGE card in the last 48 months, you won’t get a bonus on your new card. If you have an open plan that is more than 24 months old, it is recommended to apply for another month before closing to avoid disqualifying your application.
Related: Final Guide to Credit Card Application Restrictions
Transferable points may be a better choice
To quickly accumulate frequent flyer miles without relying on specific travel benefits, consider applying for a card with a transferable reward instead of an airline card.
Several transferable points programs are available, such as American Express membership rewards, Bilt Rewards, Capital One Miles, Chase Ultimate Rewards, Citi Thankyou Rewards, and Marriott Bonvoy. These programs allow you to transfer points to various airline partners, providing flexibility and protecting you from sudden devaluation of reward charts.
Additionally, credit cards associated with these programs offer reward opportunities across multiple categories of gas, groceries, catering and general travel purchases (not just air tickets). This makes them excellent earners compared to many airline credit cards.
Bottom line
Deciding whether to bring an airline credit card depends on some important factors.
First, evaluate whether the welcome offer provides compelling value. Then, consider whether valuable benefits (such as allowances and discounts on travel days) are valuable enough to exceed the annual fee. Finally, evaluate whether the reward card can transfer rewards to better align with your spending habits and travel preferences.
Related: Credit Cards Helping to Encourage My Luxury Travel
