Find the Best Airline Rewards Credit Card

 

The Differences Between an Airline Credit Card and a Travel Credit Card?

Airline credit cards are a type of rewards credit card that differs from general travel credit cards like the Platinum Card from American Express. Airline cards are co-branded credit cards that align with specific air carriers.

These cards offer rewards and perks that apply towards that specific airline or their codeshare partners. Partners typically include affiliated airlines (known as an airline alliance, like Oneworld, SkyTeam, or Star Alliance), hotel partners, or other affiliates. Airline credit cards offer significant value for travelers who prefer to use one carrier or want the ability to use valuable rewards miles with specific airline partners.

Benefits with airline cards are specific to flights and airports. These can include a wide array of perks, including:

• Free checked bags
• Priority boarding
• Lounge access
• In-flight discounts
• Airport of in-flight Wi-Fi

Airline cards are like travel credit cards in that the best rewards and perks come from cards that charge an annual fee. Cards that charge an annual fee over $95 usually offer lounge access, as well as substantial signup bonuses. Like travel cards, however, there are still some great offers for no annual fee.

The Value of Airline Miles

Current Frequent Flyer Program Valuations (Updated)

Before you decide on a co-branded airline credit card, make sure you understand how much the points or miles you earn are worth. Here are the latest valuations for leading frequent flyer loyalty programs:

• Alaska Mileage Plan – 1.8 cents/mile
• American Airlines AAdvantage Miles – 1.4 cents/mile
• Delta SkyMiles – 1.2 cents/mile
• Flying Blue Points – 1.2 cents/point
• Flying Club Miles (Virgin Atlantic) – 1.5 cents/mile
• Frontier Miles – 1.1 cents/mile
• HawaiianMiles – 0.9 cents/mile
• MileagePlus Miles (United) – 1.3 cents/mile
• Miles & More Miles (Lufthansa) – 1.4 cents/mile
• Southwest Rapid Rewards Points – 1.5 cents/point
• Spirit Airlines Free Spirit – 0.4 cents/point
• TrueBlue Points (Jet Blue) – 1.3 cents/point

What to Look for In an Airline Rewards Card

When it comes to airline rewards cards, there are many things to consider, depending on an individual’s wants and needs. There are, however, several things that all flyers should keep an eye on:

Signup Bonus

One of the reasons why airline rewards cards are so popular is that they offer signup bonuses. As with travel cards and hotel credit cards, airlines provide big bonuses to entice new passengers. While the exact bonuses differ depending on the annual fee, some cards, such as those from Delta, Aer Lingus, British Airways, and others, offer signup bonuses of up to 100,000 miles.

Airline Alliances and Codeshare Agreements

Many people get airline rewards credit cards because they frequently travel with an airline and want rewards for their loyalty. One of the excellent things about these cards that people overlook, however, is the ability to rewards with several different carriers.

Many of the largest airlines in the world are members of global alliances. Delta Airlines, for example, is a member of the SkyTeam Alliance, which also includes Air France, Aeromexico, KLM, Korean Air, and more. United Airlines is a member of Star Alliance, which also includes Avianca, Air Canada, Lufthansa, and others. American Airlines is part of the Oneworld Alliance, also featuring carriers like Qantas and British Airways.

These alliances allow people with airline credit cards from one carrier to earn – and redeem – miles with any other member of the partnership. Some airlines aren’t members of an alliance. Instead, they have private “codeshare” agreements with other airlines. These codeshares operate in a similar vein to alliances, just on a one-on-one basis.

Flexibility of Rewards

Rewards flexibility is another critical consideration when it comes to this type of card. Many airline rewards credit cards – especially those part of frequent flyer programs, like Delta SkyMiles – have fairly strict terms of redemption. These are typically for flights with SkyTeam, seat upgrades, lounge access, or bookings with select hotel partners.

Perks

Before you apply for an airline rewards card  always be check out the benefits cardholders can expect from card membership.  The higher the annual fee, the better the perks. The same rationale applies to other perks, like frequent flyer tiers with airlines or other partners. By taking the time to consider what you want out of a card, you can whittle down the list to find the ideal card for you.

Foreign Transaction Fees

Many people overlook foreign transaction fees when exploring airline rewards credit cards. But what good is an airline card if you must pay to use it when you are traveling overseas?  Always pay attention to foreign transaction fees. If you plan on using the credit card abroad, look for a card with no foreign transaction fees.

Should You Get an Airline Credit Card?

Airline rewards cards offer significant value, but should you apply? The answer is likely “yes” if you meet the following criteria:

• You plan to fly with the same carrier. This also applies to flying with airlines that are part of an alliance with the preferred carrier, or codeshare partners. Flying with these partners will earn extra rewards.
• The perks are valuable. Value with perks and benefits vary based on the individual. Do you fly enough o get value for free checked bags, lounge access, or other airline-specific perks?
• You have an excellent credit score. Travel credit cards require higher credit scores, meaning that they may be out of the reach of many applicants. The best credit scores also get the biggest rewards. Before applying, make sure you have good odds of approval – otherwise, your credit report may take a hit with nothing to show for it.
• You plan to pay your statement balance in full each month. Rewards cards make no sense if you carry a balance. That’s because the interest you accrue will eliminate the rewards you earn for every purchase.
• The benefits outweigh the annual fee. Will the points/miles, perks, and credits offer more value than the yearly cost of being a card member?

Browse the Best Airline Rewards Credit Cards of 2020

Trying to find your ideal credit card? BestCards has comprehensive and impartial reviews of the top credit cards for flyers available today. Scan our hundreds of reviews, use our comparison tool and take advantage of our extensive credit card resources and advice.

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