If you are a regular traveler because of your job or just for fun, you might have considered the possibility of getting an airline credit card. There are many perks of having one, airline credit cards have been changing through the years and they offer more than just airline miles, nowadays you can also have advantages regarding your checking luggage, priority onboarding, and higher loyalty status. If you are wondering how you properly choose your airline credit card, professionals from Loan Cheetah provide us with some information that can be useful for your choice.
There are many questions you should ask yourself before choosing the right airline credit card, if you are committed to getting one, then go over these aspects:
- Rewards: This is one of the main reasons why people choose to have an airline credit card. Whenever you buy a flight ticket, you get miles, so you need to check how many miles you get per dollar. For instance, most companies provide 2 miles for each dollar, but as the market becomes more competitive, there are airline companies that offer even 3 miles per dollar. What is more, you can also find other benefits on other travel purchases such as hostels, restaurants, or rental cars.
- Airlines: This is an important step during your choice, whether having an airline credit card is worth it or not will depend on the selection of the different airlines. Some research is needed to start, particularly if you already have a frequent destination. For instance, if a national airline from your country does regular flights to destinations in your country, then the smart thing to do is to choose that airline.
- Alliance: Airlines have partners and some of them count on a large list of them. So, another thing to consider is to compare the airlines depending on the alliance they belong to. You can earn miles with any airline in the same alliance, the best thing to do is to check for the alliance first, then you see all the airlines that are part of it and see if it is convenient for you.
- Additional perks: More than miles, there are airline credit cards that provide other benefits, such as luggage and this is a great bonus. Sometimes you pay 100 dollars for a suitcase, but you can get a free checked bag on each trip and save a lot of money. Moreover, you can get onboarding priority, get first to the plane avoid lines and waiting, or even discounts on plane purchases. Depending on the airport, there are also places for those who have an airline credit card, it is like a space for members to wait before the onboarding, where you can enjoy for courtesy coffee or a drink.
- Budget: There is still time to think about the money you are willing to pay for an airline credit card, an annual fee range is around $450 to $690. Look at the rewards programs of all the airline credit cards you find. Make sure you are getting enough rewards to cover the cost of your annual fee. Also, read the fine print (terms and conditions) for any baggage fee that may be a part of the annual fee.
How beneficial are rewards?
With an airline credit card, you can earn rewards points for every purchase you make. Most cards offer at least 2 points for every dollar spent on airline purchases, and 1 point for every dollar spent elsewhere. However, some of the more competitive cards now offer 3 points or more per dollar spent on airline purchases. Additionally, many cards feature bonus miles for other types of purchases such as hotels, rental cars, restaurants, gas, or groceries. With so many ways to earn rewards, an airline credit card can be a great way to save money on your next trip.
How to choose a credit card from an airline?
There are many different airline credit cards available, so it is important to compare the options to choose the best one for you. For example, American Express offers four versions of its Delta SkyMiles credit card for consumers and three versions for small business users. Chase offers four versions of its United MileagePlus cards for consumers and three business cards. Citi features three versions of its American Airlines AAdvantage card for consumers and one for small business owners. Barclays offers one version of its American Airlines Aviator cards for consumers and one for small business owners. Chase also offers three consumer versions of its Southwest Airlines Rapid Rewards cards, and two versions for small business owners.
When deciding which airline credit card to get, consider how often you fly with that particular airline, what kind of rewards you are interested in, and what your spending habits are like.
What about elite status?
Another thing to consider is that with the right credit card, you will easily achieve elite status. A few airlines offer credit cards that grant you some elite qualification miles when you reach minimum spending requirements and achieve a good credit score. With these cards and enough spending amount each year, it is probable you also can bypass some of the requirements for elite status. Some airline credit cards can help get you Elite Status faster by giving out some Elite Qualifying Miles when you spend enough.
Final thoughts
Getting an airline credit card is a smart thing to do so if you are a frequent traveler, to properly choose one. It is important to take into account the rewards you will benefit from, based on the frequent trips you do, you will make comparisons among the different airlines and their alliances. All in all, it depends on your travel situation and the frequent places you visit, which means you will choose an airline that reaches those corners, for instance, if you love traveling to the Caribbean, then you won’t get an airline credit card from AirFrance when American Airlines could be a better choice for you.
