Airline Credit Cards
DATE UPDATED: 2019-10-25 AUTHOR: Madelene Kristensson
Choosing the best airline credit card
At FlightsFrom.com we want you to get the most out of your travels as possible. If you're a frequent flyer that's loyal to a certain airline or alliance, applying for a loyalty program should be on the top of your list. But actually flying is not the only way to earn does coveted miles and get rewards like a free trip. With an airline credit card you can accumulate miles by simply spending dollars, on of course travels; but also at your favourite restaurant, the shopping mall or your daily order at the local coffee shop - which will certainly get you that free flight even sooner.
Ready to start accumulate even more miles? We've put together this comparison of all the best airline credit cards out there - making it easy to find the airline credit card best suited for you.
Compare Airline Credit Cards
Good - Excellent
United℠ Explorer Card
If you’re a loyal United customer and want to accumulate miles in United’s frequent flyer program MileagePlus, the Explorer Card could be the credit card for you. The annual fee of $95, which is waived the first year, give you benefits like your first bag checked for free, priority boarding and two one-day passes each year to the United Club. You also get 25% back in credit for all in-flight purchases. To reach the ultimate goal (free flights) you should start by meeting the minimum spending requirement ($2,000 within the first three months) and bring in the sign-up bonus of 40,000 miles. You also earn miles by simply using the credit card for everyday purchases; which give you one mile per dollar. Add to that, two miles on every dollar spent at restaurants, hotels and directly with United.
Rewards Rate
- 1X Earn 1 mile per dollar on everyday purchases
- 2X Earn 2 miles per dollar on directly purchased United tickets
- 2X Earn 2 miles per dollar on hotels and restaurants
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Intro Bonus40,000 Miles
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Annual Fee$95 waived the first year
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Regular APR18.49-25.49% variable
United℠ Explorer Business Card
The United℠ Explorer Business Card has an annual fee of $95 and a huge sign-up bonus of up to 100,000 miles. The first 50,000 bonus miles will be transferred to your account after you meet the spending limit of $5,000 within the first three months. You’ll be rewarded with the other 50,000 miles once you’ve spent $25,000 within the first six months. The United℠ Explorer Business Card also comes with travel benefits like your first checked bag for free on all United’s flights, two one-time passes each year to the United Club and free employee cards. You earn miles by flying with United and it’s partners as well as on everyday purchases. For example, you get two miles per dollar at restaurants, gas stations and office supply stores, two miles per dollar on all United purchases and one mile per dollar on all other purchases.
Rewards Rate
- 1X Earn 1 mile per dollar on everyday purchases
- 2X Earn 2 miles per dollar at restaurants, gas stations and office supply stores
- 2X Earn 2 miles per dollar on United purchases
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Intro Bonus100,000 Miles
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Annual Fee$95
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Regular APR17.74-24.74% variable
Good - Excellent
How do airline credit cards work?
There are two different kinds of airline credit cards. Those offered by a credit card company or bank in collaboration with a specific airline (co-branded credit cards) and those which miles can be used for rewards at a number of airlines (generic travel credit cards). But basically, they work the same way; for every dollar you spend, you earn a set number of miles or points that later can be turned into rewards.
Co-branded airline credit cards
A co-branded credit card is promoted by two different players; a financial institute like a bank or credit card company and a large merchant (in this case an airline). By using the card you accumulate and redeem miles for rewards in a single airline's frequent flyer program (also known as loyalty or bonus program). A co-branded airline credit card should therefore be the obvious choice for passengers who are loyal to one specific airline. You will be rewarded for your loyalty with not only free trips but also with benefits like priority boarding, lounge access and free checked luggage.
Generic travel credit cards
A generic travel credit card, also called flexible or non-branded credit cards, is for the traveler that's not loyal to a particular airline. The redemption options are way more open and rewards can be redeemed at a number of airlines (as well as other companies operating within the travel industry) instead of just one.
Sign-up bonus & annual fee
Before deciding on a credit card, it's important to compare sign-up bonuses and annual fees. Almost every airline credit card offers new customers a sign-up bonus - some more generous than others. Usually, the bonus is somewhere between 25,000-60,000 miles or points, but you can also find bonuses of 100,000 and more. A big sign-up bonus gets you closer to a free flight - or even gets you there right away, but keep in mind that most sign-up bonuses include spending requirements and often so within a certain time frame.
Depending on credit card, the annual fee can differ hundreds of dollars. Some of the lowest fees today are around $70 a year, while the considerably steeper ones can go up to $1000/year. The more expensive credit cards usually mean more benefits and perks, and in most cases unlimited lounge access across the globe. If lounge access is something that is important to you than you should consider one of the pricier cards, if not; save yourself a few hundred dollars every year by going with one of the cheaper ones.
There's also carriers that offer credit cards with no annual fee, but this usually means fewer or no extra benefits such as free checked luggage and priority boarding. This can be a good alternative for someone who doesn't travel very frequently, but still wants a chance to earn miles when they do.
Minimum spending requirements
To actually get your sign-up bonus most credit cards require that you reach a certain spending limit. The minimum spending requirement varies depending on credit card and can differ from $500 to $4,000 within a period of three to six months. Some credit card also give you an added sign-up bonus if you spend $10,000-$20,000 within the first year.
If you can't reach the minimum spending requirement within the time frame, you will not get the bonus. It's therefore very important to make sure that you are able to spend the specific amount. It's also important to point out that you should not spend any extra money to reach the requirement; only what you usually spend. Because as soon as you start making unnecessary payments just to get over the limit, the bonus miles won't be free anymore. Instead, make sure you make every purchase and payment with your new credit card; this can for example include rent, phone bill, restaurant visits and gas.
Extra miles per dollar spent
One mile per dollar spent won't get you very far. A lot of airline credit cards offer extra miles for every dollar you spend on certain purchases. Co-branded credit cards usually gives you a lot more miles per dollar when you make a purchase with that specific airline and some cards give you 2-5X miles when dining at a restaurant or booking flight tickets or hotel rooms. You can also get extra miles for grocery shopping, gas and car rentals. This means that if you for example eat out a lot there's a card that's better suited for you, and if you spend a lot of money on gas you should apply for a credit card that gives you added miles for just that.
How to choose an airline credit card
When deciding on an airline credit card the questions you need to ask yourself are;
1. Which is your nearest airport?
2. Which carrier/s has the most routes from your nearest airport?
3. To where do you usually travel?
When you've answered all three you're in a good position to make a final decision. That is because most larger airlines that offer credit cards usually offer the same kind of rewards and benefits. Your choice should therefore not be based solely on which credit card has the best rewards; because what's the point on earning miles with an airline you never use or a carrier that doesn't offer routes to where you want to go?
Instead, base your decision on which carrier has the most routes from your home airport and that offer scheduled flights to destinations you usually travel. Then you will be able to accumulate miles even faster and get benefits that you'll actually take advantage of.
The only time you should consider getting two airline credit cards is if your nearest airport is the hub of two major carriers and you travel enough that the rewards and benefits outweigh the double annual fee. If you're a frequent flyer who's not able to be loyal to one certain airline, the flexible travel credit card might be the better choice.
Basic or premium?
Most airlines offer not one but several credit cards. Both the sign-up bonus and the annual fee can differ significantly between the most basic card and the premium ones, but with that also the spending requirements. What differentiates the cards is the benefits. A more expensive card could for example give you access to airport lounges all across the world, which might not be possible with the more basic airline credit cards.
Where can I use the card?
Some credit card companies are accepted almost all across the globe (read Visa and Mastercard), while others won't work as payment methods at all at a lot of destinations. If you travel abroad a lot and want to use your airline credit card, this is something to consider. Another thing to look into is if the credit card company charge you a foreign transaction fee or not.
