Buzz
With a wide range of travel reward credit cards available, you may wonder if an airline-focused card is worth your attention. If you already have one, it might have lost its charm, replaced by a new card offering more general benefits. However, if you're new to travel cards, you might be thinking about sticking to simplicity with a card that funnels all your spending into rewards with one airline.
Is this a clever move, or are you overlooking something? Let’s explore the advantages and drawbacks of choosing an airline-branded credit card.
What you get
An airline-branded credit card may offer some attractive benefits. By using the card to book your flights, you could get perks like a free first checked bag (saving you at least $25) or discounted in-flight food and drinks up to 50%. Some cards even offer a rebate on miles you redeem, so you won’t have to start from scratch after a reward trip.
You can also often earn miles more quickly with an airline-specific card. While a standard travel rewards card might earn you one to three points per dollar spent, an airline card may multiply your rewards if you use it for travel bookings—I’ve seen offers as high as six times the miles. If you tend to book basic tickets, an airline card can help you rack up points faster than just spending alone.
The downsides
Airline credit cards often charge an annual fee, starting around $95 and climbing to $450 for premium versions. Some general travel rewards cards, however, don’t charge any fees at all.
Another significant downside is that while you can use an airline’s credit card for any purchase, your miles can only be redeemed with that airline, and perhaps a few of its partners, if you’re lucky.
If the airline you’re applying for doesn’t have a hub in your area, there’s a possibility that the routes you frequently take could be eliminated. Alternatively, if you apply for a card without a specific trip in mind, you might go through the process of spending to reach a lucrative signup bonus only to find yourself booking your long-awaited vacation with a different airline.
Who should think about getting an airline credit card
If you’re a frequent traveler who tends to fly the same routes and prefers one airline over the rest, it may be worth getting that airline’s card, even if it’s just for booking travel on that airline.
For those who don’t travel often, a general rewards card will work just as well, especially one that allows you to transfer points to airlines you’re likely to use. Just be sure to check the fine print on point transfers and how their value might change with different airlines.
Not quite ready to apply for a new credit card? In the meantime, consider signing up for the airline’s free frequent flyer program, so you can still rack up points for any upcoming trips you take.
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