What are Airline Credit Cards?
Airline credit cards are credit cards specifically designed for frequent flyers who travel often via airlines. These cards offer rewards and benefits to cardholders, such as airline miles or points, priority boarding, and access to airport lounges. Airline miles or points can be redeemed for free or discounted flights.
Airline cards can be a great option for those who travel frequently and want to earn rewards while they do so. It is essential to choose the right card that fits your travel and spending habits to get the most out of its benefits and rewards.
Airline Credit Cards vs. Travel Credit Cards
Airline credit cards and travel credit cards are popular options for frequent travelers in the USA, both offering rewards and benefits for purchases made. However, there are differences between the two credit cards.
Airline cards
Airline credit cards work with a particular airline. Airline credit cards are co-branded with airlines and offer rewards as miles or points that can be redeemed for flights on that airline. They often come with perks like free checked baggage, priority boarding, and discounts on in-flight purchases.
Travel rewards cards
Travel credit cards, on the other hand, provide a more flexible rewards program, allowing users to redeem points or miles for a wider range of travel expenses, including flights, hotels, car rentals, and more. They may also offer benefits like travel insurance, concierge services, and no foreign transaction fees.
When choosing between an airline credit card and a travel credit card, consider the frequency and type of travel you engage in. If you primarily fly on one specific airline, an airline credit card may be more beneficial, offering a more direct path to earning and redeeming rewards. However, if you're more likely to book different airlines or travel experiences, a travel credit card with a flexible rewards program may be a better choice.
Airline Credit Cards benefits
An airline card offers several benefits to cardholders in the USA. These benefits include:
- Airline miles. Many airline credit cards provide cardholders with rewards points in the form of airline miles. You can redeem these miles for flights, upgrades, or other travel-related expenses. For example, Alaska Airlines flights booked with its Visa credit card and eligible Alaska Airlines purchases allow you to earn miles per dollar spent.
- Travel perks. Some airline credit cards come with additional travel benefits, like lounge access, priority boarding, and travel insurance.
- Companion passes. Some airline credit cards provide cardholders with a companion pass, which allows a designated person to fly with the cardholder for a reduced fee.
- Earn rewards. Airline credit cards typically offer a rewards program that enables cardholders to earn points or miles on purchases made with the card.
- Exclusive promotions. Cardholders of airline credit cards often receive exclusive promotions and discounts on flights, hotels, car rentals, and other travel-related expenses.
Airline Credit Cards drawbacks
Airline credit cards can come with various drawbacks for consumers in the USA. One drawback is the high annual fee, which can outweigh the benefits of rewards and perks offered by the card. Additionally, airline credit cards often have restrictions on the type of flights and airlines you can redeem rewards for.
Another drawback is limited flexibility in redeeming rewards. Co-branded airline card offers only allow rewards to be redeemed for specific airlines or flights rather than allowing cardholders to use rewards for other travel expenses. Cardholders may also find it difficult to use rewards if they don't fly frequently or their preferred airline is not part of the rewards program.
Some airline credit cards also have limited rewards-earning potential compared to other travel credit cards, with rewards often capped at a specific dollar amount each year. Additionally, airline credit cards often require cardholders to book directly through the airline, reducing the opportunities for earning rewards through other travel purchases.
Finally, cardholders may find themselves with a high interest rate if they carry a balance. Airline credit cards are often marketed as rewards cards rather than low-interest credit cards. Cardholders not paying their balance in full each month could end up paying more interest charges than the value of their rewards. Balance transfers often have their own fees and rates.
How to choose an Airline Credit Card
When choosing an airline credit card in the USA, there are several factors to consider. There are important things that help you make the right choice:
- Credit card account anniversary. Some airline credit cards offer anniversary rewards, such as free flights or additional miles, each year you hold the card. Consider whether the annual benefits are worth the cost of the card for you.
- Annual fee. Many airline credit cards come with an annual fee, which can range from a few dollars to several hundred. Consider if the fee is worth the benefits and rewards you will receive from using the card.
- Statement credit. Some airline credit cards offer statement credits for eligible purchases, such as checked bags or in-flight food and drinks. If these benefits align with your travel habits, consider a card that offers these perks.
- Foreign transaction fees. If you plan on traveling internationally, it's important to look for an airline credit card that doesn't charge foreign transaction fees. This can help you save money on purchases made abroad.
- Eligible purchases. Consider what purchases you make most frequently, and look for an airline credit card that rewards those purchases the most. Some cards offer bonus miles for purchases made with certain merchants or in certain categories.
- Sign-up bonus. Many airline credit cards offer a sign-up bonus, usually as miles or points, for meeting a minimum spend amount within a certain time period. Consider if the bonus and the minimum spend requirement are worth it for you.
By examining these factors, you can find the airline credit card that best fits your travel needs and offers the benefits and rewards you value most.
How to get an Airline Credit Cards
Getting an airline credit card in the USA is a straightforward process. There are several steps to follow:
- Determine what kind of airline credit card you want. Most airlines have partnerships with credit card issuers. Decide which airline you prefer to fly with and research the credit card options available.
- Check your credit score. Good or excellent credit is usually required to be approved for an airline credit card.
- Compare offers. Compare the sign-up bonuses, annual fees, rewards, and benefits offered by different airline credit cards.
- Apply for a credit card. You can apply for an airline credit card online, by phone, or by mail.
- Wait for approval. It may take several days to get a response about your credit card application.
- Activate the card. Once approved, you will receive your airline credit card in the mail. Follow the instructions to activate your card.
- Start using your card. Start using your airline credit card for eligible purchases to start earning rewards. Be sure to make payments on time and keep your credit utilization low to maintain a good credit score.
Remember to read the terms and conditions of the credit card to understand the fees and benefits associated with it. Choose the airline credit card that meets your travel needs and offers the best value.
How to make the most of an Airline Credit Card?
To make the most of an airline credit card in the USA, it's important to consider the following tips:
- Know your rewards program. Understand how your airline credit card's rewards program works. Know the earning and redemption rates for flights, hotel stays, and other eligible purchases.
- Use your card regularly. Regular use of your airline credit card can help you earn more rewards and hit milestones that trigger bonuses.
- Take advantage of perks. Make sure to take advantage of the perks that come with your airline credit card. For example, many airline credit cards offer free checked bags, priority boarding, and airport lounge access.
- Maximize sign-up bonuses. Try to maximize the sign-up bonus offered by your airline credit card. This can add up to hundreds of dollars in savings.
- Utilize statement credits. Many airline credit cards offer statement credits that can be redeemed for eligible purchases, such as baggage fees or in-flight food and drinks.
- Consider foreign transaction fees. If you travel abroad frequently, consider an airline credit card with low or no foreign transaction fees.
- Monitor annual fees. Keep an eye on annual fees and make sure the benefits of your airline credit card outweigh the costs.
- Redeem rewards wisely. Redeem rewards wisely and make sure you get the most value out of them. Choose flights during peak travel times or upgrade to business or first class.
By following these tips, you can make the most of your airline credit card and enjoy all the benefits it has to offer.
The best Airline Credit Cards
There are several airline credit cards that are considered to be some of the best airline credit card offers in the USA, including:
- Delta SkyMiles® Reserve American Express Card. The annual fee is $550. You get an intro offer of 50,000 once you spend $5,000 on eligible purchases in the first six months from account opening. The miles are earned on Delta flights and purchases at the rate of 3 miles per dollar spent. On other purchases, you get 1 mile.
- Delta SkyMiles® Platinum American Express Card. This card offers a sign-up bonus of up to 100,000 miles, as well as rewards for Delta purchases, including 3 miles per $1 spent on Delta purchases and 1 mile per $1 spent on other purchases. You get a checked bag free on Delta purchases, priority boarding, and in-flight purchases savings. The annual fee is $250.
- Alaska Airlines Visa® Credit Card. These are co-branded airline cards. The annual fee is $95. You get a free checked bag, a sign-up bonus, and in-flight purchases discounts. Alaska Airline's frequent flyer program allows its customers to save money on the same reservation with their family members.
- Citi® / AAdvantage® Platinum Select® World Elite Mastercard® Credit Card. This is an American Airlines card. It offers a sign-up bonus of up to 60,000 miles and rewards cardholders with 2 miles per $1 spent on American Airlines purchases and 1 mile per $1 spent on other purchases. There is an intro annual fee of $0. After the first year, your annual fee will be $99.
- VentureOne Rewards Credit Card. Venture rewards credit card is offered by Capital One. Capital one venture rewards card's annual fee is $0. You receive travel rewards you can spend with airline partners. The credit card miles are 5 miles per dollar spent on hotels and rental cars and 1.25 miles per dollar spent on other eligible purchases. Online-only offer with Capital One Venture Rewards credit card allows you to get 20,000 miles after you spend $500 on purchases in the first three months from account opening.
- Southwest Rapid Rewards® Plus. You get from 2 to 3 miles per dollar on eligible purchases and phone services. A sign-up bonus allows you to get 50,000 points on $1,000 purchases in the first three months. The card has an annual fee of $149. Each year, you will earn 7,500 on your card's anniversary.
