At one time, airline-branded credit cards offered the best way to save money and earn rewards when flying. Now, travelers can choose from a wide range of rewards credit cards that are not tied to a single airline loyalty program. While staying loyal to one airline is the right answer for some travelers, putting all your miles on one credit card may not be worth it for others.
[See: 12 Frugal Ways to Save on Vacation.]
Airline-branded credit cards. All the major U.S. airlines have their own branded credit cards. In fact, American, Delta, JetBlue, Southwest and United all offer multiple cards depending on the type of traveler you are. If you live near a hub for one of these airlines, or find that you fly one of them exclusively, then having one of their cards may be the right choice.
Airline credit cards offer rewards that you can’t get anywhere else. Just by having the card, you are eligible for perks such as priority boarding, one free checked bag, discounts on airline miles redemption and in-flight purchases. The Citi AAdvantage Platinum Select World Elite Mastercard offers free first checked bags for the cardholder and up to four companions on the same reservation. The JetBlue Plus Card offers 50 percent off in-flight purchases for drinks and food. Almost every airline card offers a sign-up bonus to new credit card members worth at least one round-trip domestic flight.
These credit cards offer additional perks, such as insurance for lost or delayed luggage and trip cancellation or delay.
Airlines also have premium credit cards ideal for frequent fliers. These cards come with higher annual fees but offer generous perks such as free companion tickets, free access to airport lounges, credits for Global Entry or TSA PreCheck, 24-hour concierge services and more.
[See: 8 Ways to Maximize Your Credit Card Rewards.]
Alternatives to airline credit cards. If you don’t live near a major airport or airline hub, collecting miles for one airline can limit your choices when you want redeem your miles for travel. You may find fewer direct flights, and the price of the tickets might be higher. Rewards cards not tied to one airline can offer more flexibility, allowing you to shop any airline for the best fare or the most convenient itinerary.
For some, the simplicity of using a credit card that earns cash-back rewards can be the right choice. Although they offer straightforward rewards, cash-back cards can be significantly less valuable than travel cards. Furthermore, cash-back cards generally don’t offer the travel perks and trip protections that come with cards geared toward travel.
A more appropriate alternative can be found in the generic travel cards from issuers such as Barclays, Capital One, Chase and Discover. These travel cards are not connected to any airline or loyalty program. Instead, cardholders can earn points on their spending that they can apply to any travel expense, from airline tickets to taxi rides to baggage fees. With cards such as the Barclaycard Arrival Plus World Elite MasterCard or the Capital One Venture Rewards Credit Card, credit card holders have the flexibility to choose the flights that work best for them while still having the benefits and perks of a travel card, all for a lower annual fee than most airline credit cards.
[See: 10 Completely Careless Credit Card Mistakes You’re Making.]
There are even premium travel cards that offer travel perks that rival the high-end airline cards. Cards such as the Chase Sapphire Reserve or the Platinum Card from American Express offer access to airport lounges, credits that can be applied to baggage fees or Global Entry as well as concierge services. You can pay for these benefits with annual fees that can be as high as $550.
If you find that you always use a specific travel site, you may want to consider a website-branded card. Expedia, Orbitz and Priceline all offer branded credit cards that earn rewards you can redeem for travel at their sites.
If you have a lot of airline miles in one program but never seem to get to use them, that could mean it’s time to look for a new credit card. Airline credit cards can give you the most perks for travel on one airline, but if you are looking for flexibility, then you might want to consider a different card. Having miles or points are no help if you never use them. The key is to find a credit card that fits your spending habits and meets your travel needs.
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Are Airline-Branded Credit Cards Still Worth Having? originally appeared on usnews.com
