“Why You Should Consider an Airline Credit Card: 12 Key Perks”

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Consumer Credit and Finance Education

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Benefits of Airline Credit Cards

Many airlines offer several credit cards, ranging from options without an annual fee to premium cards that cost several hundred dollars a year. The perks can also vary, but here are 12 benefits that you’ll commonly find on airline cards. Depending on which benefits you’ll use, an airline card might make sense, even if you only take one or two flights a year.

1. A Large Intro Bonus

One of the best ways to earn lots of airline miles or points is to open a new airline credit card with a large intro bonus. You generally need to meet specific spending requirements, such as spending a few thousand dollars within the first couple of months with the card. If you do, you might receive enough rewards to book several award flights.

2. Competitive Rewards Rates

Airline cards often have tiered rewards rates, with different miles or points bonuses depending on where you shop. Generally, you’ll earn the most rewards on flights you book with the co-branded airline. But if you plan to use the card for everyday spending, consider whether the rewards categories align with where you spend the most money.

3. Discounted Award Travel

Although you can often redeem airline miles for many types of rewards, a free flight tends to be the best option. If you have an airline credit card, you might receive access to lower-cost award tickets or get 10% to 15% off bookings made using your rewards miles.

4. Complimentary Airport Lounge Access

If you’re looking for a quick break before or after a flight, an airport lounge might offer a little quiet, a bite to eat, and complimentary drinks. Some lounges even have showers and quiet rooms where you can take a quick nap. Depending on the card, you might receive a few single-use vouchers or ongoing access to the airline’s lounges—and sometimes to partner lounges as well.

5. Travel Insurance and Protections

Many travel credit cards offer multiple purchase and insurance benefits. Some of these cover consumer purchases you make with the card, such as extended warranties and return protections. But the travel-related perks may include:

• Baggage delay coverage: Could reimburse you if you need to buy essentials while waiting for a delayed bag.
• Lost baggage coverage: Could reimburse you for expenses if your bags are lost or damaged.
• Travel accident insurance: Provides accidental death and dismemberment coverage during the trip.
• Trip delay reimbursement: Covers unreimbursed expenses, such as meals or a hotel, if your flight is delayed.
• Trip cancellation and interruption insurance: Could help cover your costs or reimburse you for non-refundable expenses, such as the cost of your airline ticket or an unexpected night at a hotel. The insurance may apply if your trip is canceled or interrupted because of weather or medical emergencies.
• Collision damage waivers on rental cars: Might cover your expenses if your rental car is damaged or stolen. Many cards include secondary coverage, which means you have to try to use your primary auto insurance coverage first.

6. TSA PreCheck or Global Entry Statement Credits

Getting through airport security can be much simpler if you have a TSA PreCheck or Global Entry membership. In addition to potentially shorter security lines when you get to the airport, you won’t have to take off your shoes or remove electronics from your bags. And Global Entry offers expedited clearance for reentry into the U.S.

7. Priority Screening and Early Boarding

Even if you don’t have TSA PreCheck or Global Entry, some airline cards will get you into an airline-specific priority screening line at certain airports. You may also receive early boarding, giving you more time to find space for a carry-on bag and settle into your seat.

8. Free Checked Bags

Free checked bags have been a long-time benefit of airline cards. The rules and restrictions can vary, but you and your travel companions generally get to check one or two bags for free if you book the flights with your card. The savings on bag-check fees can stack up, particularly for families traveling together, which could be reason enough to get an airline card.

9. Elite Status

Most airline cards don’t come with automatic status in a frequent-flier program, but they might help you earn it. For example, the card might give you extra miles or points toward elite status when you use the card to spend a certain amount of money—such as a bonus for every $500 you spend. Earning status through credit card purchases alone might require a lot of spending, but the extra rewards could help push you over the threshold if you frequently fly the airline as well.

10. In-Flight Discounts

You might receive a statement credit after making in-flight purchases using the airline credit card. The amount can range from 20% to 50% of what you spend depending on the card and airlines. Also review the fine print: Some benefits only apply to in-flight food and beverages, while others cover Wi-Fi purchases as well.

11. A Companion Pass

Some airline credit cards give you a companion pass each year. These passes might allow you to buy one ticket and get a discounted or free second ticket, not including applicable taxes and fees.

12. Anniversary Benefits

A companion pass is one of the benefits that could renew each year, but some airline cards also offer other annual perks to help entice cardholders to keep their card—and keep paying the annual fee.

Extra miles or points, lounge passes, and statement credits toward flights are three of the most common types of anniversary benefits. Although these can help justify paying an annual fee, review the terms carefully. In some cases, the passes or credits might expire if you don’t use them before your next cardholder anniversary.

Frequently Asked Questions

What Credit Score Do I Need to Get an Airline Credit Card?

Credit score requirements can vary by card, but generally, a good to excellent credit score is needed to qualify for an airline credit card.

Are Airline Credit Cards Worth It?

Whether an airline credit card is worth it depends on your travel habits and how often you can take advantage of the card’s benefits.

Should I Sign Up for a Credit Card on a Flight?

Signing up for a credit card on a flight can sometimes offer additional bonuses, but it’s important to compare the card’s benefits and fees before making a decision.

Compare Airline Credit Card Offers

If you think an airline credit card might be a good fit, you may want to narrow down your options based on which airlines you frequently fly—or which fly out of your closest airport most often. From there, compare the airline’s credit cards to see which offer the best benefits for the fees, and which travel cards might be good alternatives. You can also use your free Experian account to get matched with credit cards based on your unique credit profile.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you make the best financial decisions!

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