You may have heard about frequent flyer miles and travel rewards credit cards from individuals you know who travel regularly. Customers in the know sign up for travel credit cards, use them for everyday purchases, and earn airline miles that can be redeemed for free flights, seat upgrades, and more.
Award flights can be saved with little effort for individuals who are good at making the most of their spending credit. Expert "travel hackers" collect thousands of miles using their cards for all purchases, including the sign-up incentives that give them access to "free vacations" and other enticing perks.
Credit Cards For Airlines: How Do They Work?
Banks and other card issuers also issue airline miles credit cards, similar to regular credit cards. But they also feature the brand of the affiliated airline. In addition, while making qualified purchases, cardholders receive "air miles" instead of points or cash-back benefits. Airline mile accrual is card and expenditure category specific.
Usually, you may get two or three miles per dollar spent while purchasing from the partner airline. Bonus interest rates are offered by certain cards on specific types of expenditure, including those made at restaurants or grocery stores.
In addition, many airline credit cards include sign-up incentives for new cardholders who make a specified purchase within a specific time frame. One standard card, for instance, rewards new cardholders with 40,000 additional miles if they spend $1,000 in the first three months of card membership.
Credit Cards Issued by Airlines Offer More Than Just Air Miles
Free checked baggage, priority boarding, airport lounge access, free yearly companion tickets, and travel insurance are just a few of the many benefits that come standard with many airline miles credit cards.
While the annual cost may be higher, these cards are frequently the ideal option for frequent flyers with a penchant for extravagance. In addition, some airline credit cards allow their holders to upgrade to a higher tier of loyalty status, unlocking even more benefits.
One airline, for instance, gives its elite loyalty members who use its branded credit card a free checked bag for themselves and up to eight guests. A party of nine friends might save up to $540 each round trip if they shared a suitcase and paid the average baggage price of $30.
Consider Airline Miles Credit Card Costs Before Applying
The annual charge for an airline credit card might be anything from $100 to $500. There is a correlation between the yearly cost of a credit card and the value of the benefits and sign-up incentives you receive.
A $99 annual fee card can include free checked luggage and other methods to rack points. However, a card with a $550 annual cost can consist of perks like yearly companion tickets, free upgrades, and access to airport lounges, in addition to the standard bonuses.
However, for those who only fly occasionally but still want to rack up miles over time, no annual fee airline credit cards can provide a streamlined approach to earning extra miles without many of the added features. However, frequent fliers may benefit more from a credit card with an annual charge, as they sometimes come with additional privileges that aren't included with no-cost cards.
Using A Multi-Purpose Credit Card for Travel
Those who routinely use one airline may consider applying for a credit card issued by that airline. If you're eligible for elite status, the perks alone can significantly cut your travel costs while elevating your experiences.
On the other hand, an airline credit card may be too limiting for you if you travel less or if you like to utilize other airlines. A better option may be a credit card that offers rewards that can be transferred to different airlines.
For instance, points earned on general-purpose travel credit cards can be redeemed for everything from airfare to hotel stays. Some advantages may be tied to the airline, such as free checked baggage or access to an airport lounge, while others may pertain to the hotel, such as late checkout or an upgraded room.
Also, like airline credit cards, these cards will have varying annual rates, with the higher levels offering more perks that are sure to come in handy for frequent flyers and those who want to travel in style.
The Bottom Line
Choosing which rewards credit card is ideal for your upcoming trip might be challenging. Frequent fliers may save hundreds of dollars a year by using an airline credit card, and the additional perks and loyalty status upgrades are a nice bonus.
However, only some are good candidates for airline credit cards, and cards with annual fees may quickly rack up expenses if the incentives aren't used. Consider your spending patterns and desired rewards before applying for a credit card from a specific airline.
