Which credit card best meets your spending, travel habits and preferences will depend on a combination of factors; airline cards may be beneficial if you prefer one airline over the other and would like perks such as lounge access or fast track status.
General travel cards may be best for those looking for flexibility across multiple transfer partners and an array of travel-related rewards. To make an informed decision, compare the benefits associated with each type of card before making your choice.
Rewards
Airlines credit cards provide frequent flyers with valuable benefits, including reduced in-flight purchases and priority boarding, but it’s important to consider their annual fee and rewards earning potential before determining whether an airline credit card is right for them.
Airline credit card rewards tend to be less flexible than general travel cards, and may only be redeemable on one specific airline. That can be an important consideration if your travel spending spans multiple airlines.
Signing up for a free NerdWallet account provides an in-depth view of your spending, as well as customized recommendations for credit cards that can help expand your horizons. Creating an account takes just minutes – however beware any offers with hidden fees as this could reduce their value to you significantly.
Perks
Airlines credit cards provide additional rewards and perks that don’t exist with general travel cards, like bonus miles for in-flight purchases or advancement toward Delta Medallion status.
Co-branded airline credit cards are issued by card issuers with strategic partnerships to a specific airline or hotel brand, offering rewards through that specific program and possibly offering other perks like free checked bags or access to airport lounges.
General travel cards provide more freedom when redeeming rewards, often including statement credits, cash back and merchandise redemption options. Some cards also allow users to transfer points across airlines and hotels allowing more opportunities for award tickets; many such cards have no annual fees attached.
Fees
Airline credit cards often offer attractive benefits that can offset their annual fee, such as free checked bags and priority boarding. Additional perks, like airline-specific elite status accelerators or access to airport lounges, may also come in handy for travelers.
Some airline-branded cards also provide extra perks that could save you money on travel, such as trip cancellation insurance and lost luggage reimbursement. Deciding the ideal card depends on whether its benefits outweigh any annual fee that could range anywhere from $95 to over $500 annually.
Some airline cards provide generous sign-up bonuses that require minimum spending amounts over a certain timeframe to earn. If this amount exceeds your budget, consider switching to a travel credit card instead. It will allow you to earn rewards on more purchases while being easier on your wallet.
Flexibility
If you find yourself flying frequently with one particular airline, an airline credit card could provide great value for your needs. But if air travel only represents 10% or less of your annual expenditures, a general travel credit card might make more sense.
Airline cards provide frequent flyers with many perks, from complimentary checked bags and elite status to additional earnings on flight purchases, flexible redemption options and trip insurance benefits. But sometimes general travel rewards cards provide greater value by offering higher earnings on flight purchases, more flexible redemption options and premium trip insurance benefits.
Which card is right for you depends on many factors, from your travel habits and preferred carrier selection, to how often you use your card. If you need help making your decision, create a NerdWallet account for insight on your credit score as well as personalized recommendations of cards that meet both spending and travel goals while earning miles/points/cash back or other benefits that meet them.
