If you’ve ever been in airport, you likely have been bombarded with offers from airlines to join their credit cards rewards program.
Between all of the travel perks, points, and other bonuses, most of us would be pressed to admit if we weren’t at least somewhat enticed. But are airline credit cards really worth the hype?
The answer really depends on your credit usage, repayment history, and how much you travel. If you travel frequently, an airline card could very well provide the most bang for your buck, especially if you’re loyal or tend to fly on one particular airline.
With the right amount of planning, an airline credit card can be a major benefit to you. Here’s what you need to know to decide whether an airline credit card is right for you.
Basics of an Airline Credit Card
Most major airlines have a credit card associated with them. Often, these credit cards have a small annual fee of around $100, depending on the airline.
When you use an airline credit card you accumulate miles. For example, one dollar spent may equal one flyer mile. In turn, these miles can be redeemed for free or discounted flights.
Sign-Up and Welcome Bonus
Airline credit cards typically come with some sort of sign-up or welcome bonus. For example, you may get 50,000 miles if you spend $3,000 within three months of opening a card. This sign-up or welcome bonus can be a big benefit of getting an airline credit card, because you can redeem those miles for flights.
The miles required for a given flight will vary between airlines and destinations, but if you get a sign-up or welcome spend bonus you typically have enough miles to redeem for at least one flight, if not multiple flights.
This isn’t the only benefit of an airline credit card, though, which is why many people keep their airline credit cards open long-term. Let’s go over some of the other benefits you may find with an airline credit card.
You Can Check Bags for Free
Most airline credit cards will allow you to check a bag for free. That can be a benefit of up to $60 for a round trip – per person. If you hate cramming everything you own into a small carry on, then this perk could quickly pay for itself.
Typically the free checked bag will be for you and up to one other companion. Let’s say an annual fee for an airline card is $95. If a checked bag is $30 per person, you could be looking at $120 for two people checking a bag each way. If you have an airline credit card that offers free checked bags for you and a companion, you already saved more than the annual cost for the card, and that’s before any of the other perks that may come with the card.
A couple airline credit cards that offer free check bags include:
Additional Perks
While free checked bags and accumulating miles are two big perks of having an airline credit card, they aren’t the only perks that typically come with airline credit cards. A few others include:
- Priority Boarding – Many airlines offer priority boarding to card holders. Most people are anxious to board the plane and get settled. Well, with an airline credit card you may be able to ensure that you have priority boarding.
- Lounge Access – Some airlines offer card holders access to their lounges. This varies by card and airline, but to give you an example United Explorer Card with a $95 annual fee (waived the first year) offers you two complimentary lounge passes per year. Lounges allow you to escape the busyness of the airport and get complimentary food and beverages (yes, alcohol included).
Even if you travel infrequently, say once a year, these perks can make flying more enjoyable, or at least less stressful. They
TSA Precheck and Global Entry
There are a number of credit cards that will give you a credit for your application fee for Global Entry or TSA Precheck. You are probably aware of TSA Precheck, which allows you to go through a separate security line that has less restrictions. You don’t need to take off your shoes or light jacket, nor do you have to take out your liquids. If you have TSA Precheck and you book a flight for yourself and others, more likely than not the rest of your party will get TSA Precheck for that flight as well.
TSA Precheck is $85, but what I would recommend is going for Global Entry instead. Global Entry is $100, so just $15 more, but if you have a credit card that will reimburse you for TSA Precheck chances are they will reimburse you for Global Entry. And when you get Global Entry you get TSA Precheck at the same time, all for $100. Meaning, it’s essentially a no-brainer to go with the $100 for Global Entry + TSA Precheck instead of $85 for just TSA Precheck.
Global Entry allows you to go through a different customs line when returning from international travel. These lines are usually much shorter and faster than going through the traditional customs line.
This perk isn’t limited to airline credit cards, as you can get it through more general travel rewards cards like the Chase Sapphire Reserve. One airline credit card that is currently offering this perk is United Explorer Card.
Should You Get an Airline Credit Card?
Clearly airline credit cards come with a lot of perks. If you plan on flying a specific airline at least once a year, the annual fee should be offset by perks like free checked bags. And this isn’t even counting any sign-up or early spend bonus that may come with the card.
My suggestion is to compare the current airline credit card offers and see if one of them is right for your travel habits and desired perks.
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