Airline Credit Cards Get You Your Next Free Flight: 5 Reasons To Get One

Why get an airline credit card?

With high sign-up bonuses that can get you a round trip ticket to international destinations, airline credit cards are enticing for most points and miles enthusiasts.

Most mid-range cards even waive the annual fee the first year.

Airline miles are not as valuable as transferable currencies like Chase, American Express, Citi, and Capital One though.

So should you get an airline credit card?

Here are five reasons an airline credit card should be in your wallet.

5 Reasons To Get An Airline Credit Card

1. The sign-up bonus

The number one reason to get an airline credit card is the sign-up bonus.

Basically, airline credit cards, with their annual fee waived the first year, are your next international or domestic trip.

A card like the Delta Gold at it highest sign-up could get you 70,000 Delta Skymiles.

That is enough for a round trip ticket to Europe or Asia.

Similarly, the American Airlines card offered by both Citi and Barclay could be over 120,000 miles if you got the two personal card from both banks.

That is enough for two international plane tickets.

The United Airlines credit card has a higher sign-up bonus on it’s Explorer credit card.

Again, that is a free international round trip ticket to basically any international destination in the world.

As a travel hacker, you should be on the lookout for your next airline credit card.

For instance, if your last credit card was the Delta Gold card, maybe next time you should go for am American Airlines card.

Credit card issuers will have a lot of rules.

Make sure to understand their rules.

For instance, if you had an American Airlines card in the last 24 months, you will have to wait two years.

Airline credit cards are a major part of your travel hacking strategy for the long-term (for years).

Since these cards offer higher bonuses a couple times throughout the year, you should be on the lookout for the higher sign up bonus like the United Airlines one I mentioned earlier.

RELATED: 20 Easy Ways To Save Money On Flights

2. Annual fee waived

The most popular mid-range airline credit cards have the annual fee waived the first year.

This means instead of getting the no annual fee card for the first year that you can get the mid-range card and cancel by the end of the year.

This is one of my favorite things about airline credit cards.

You can try each one for a year free.

Later in this post I will describe the three types of airline credit cards.

I am referring to the mid-range cards most of my post.

3. The ability to downgrade to the no annual fee card

Again, the mid-range card that most people get (such as Delta Gold, etc.), comes with the fee waived the first year.

This is great.

Each airline has a no annual fee card.

If after the first year you don’t want to pay the fee, you can downgrade.

This is great for two reasons.

First, your credit score is better is you keep a card longer (a downgrade is the same card).

Second, credit card issuers probably look at you more favorably when you keep their card.

Since there is no fee to downgrading to the fee free card, you can keep the card open for both reasons.

If you check luggage and fly a particular airline, you may want to keep the mid-range card though.

This is because the fee to check luggage after two trips (going and coming on a round trip ticket) will be greater than the annual fee of the card.

If you are checking luggage for two, this would happen on one round trip flight.

If you fly various airlines and you check luggage, you may want to pick one airline and stick with it and keep a credit card to waive luggage fees.

Again, if you check luggage, the credit card fee will be cheaper than paying for checked luggage.

4. Elite status

Airline elite status is not what it used to be.

If you don’t fly frequently, you will probably not fly enough to use the perks and can get the same thing you would get for basic elite status with an airline credit card.

If you fly frequently though or need elite credits, airline credit cards can be great.

Most will let you put a certain spend on the card to get to your next elite level or waive spending requirements.

The higher end cards will even give you elite credits as part of your sign-up bonus.

5. Save on award bookings

United Airlines does not list all its best awards bookings or limits them.

If you have the United Airlines credit card you will have access to these listings and more award availability.

American Airlines even allows people to get discount award rates by having their card.

So, credit cards can give you better or more award availability.

3 Types of airline credit cards

As I said earlier, I will explain the three basic types of airlines credit cards.

Most airlines issue several cards, but they all fall in three groups according to fees and perks.

1. The no annual fee card

This card is probably not the first card you should get even though it has no annual fee.

That is because the next group of cards I will explain waive the annual fee and give you more miles and perks.

You can downgrade to the no annual fee card after your first year with the mid-tier card.

2. Mid-range card

Most people should start with this card.

These cards give the highest sign-up bonuses with annual fees waived the first year.

This is great for occasional flyers to a particular airline because it gives perks that entry level elite status would give (like early boarding on flights or free checked luggage).

If you pay for luggage, it should probably be a keeper for you because the price you pay for luggage will be higher than the annual fee after two trips again.

If you are checking luggage for two, then one flight will cover the cost of the credit card.

So, if you fly a particular airline and check luggage, this should be a card you keep.

If you are like me and travel carry-on only then you will probably want to downgrade to the no annual fee card I mentioned earlier. 

3. The higher tier card

These cards are usually $450 dollars or more.

They are for frequent fliers who will use their perks like lounge access or elite credit to reach frequent flier status.  

If you would pay the annual $450+ fee for lounge access, then this is your card.

If you are going for elite status and are a frequent flier, you should consider one of these cards with your preferred airline. 

Again, most people should start with the mid-range card though.

Why airline credit cards should not be your main credit cards

Like hotel credit cards, airline credit cards only benefit you on one particular airline.

If you are going to make a purchase with a particular airline that is great.

All your other purchases will not be maximized by using an airline credit card though.

Some of your airline credit cards will not be maximized with airline purchases either.

For instance, a card like the American Express Platinum card will give you 5 points per dollar.

That will beat most airline cards unless it is important to earn frequent flier miles.

You should always do the math though.

Most importantly, they will not get you the return as a general travel credit card would.

General travel cards like The Chase Sapphire Preferred, American Express Green, or Citi Premier should be your main card.

Why?

These cards transfer to many different airlines, hotels, etc.

Again, they will maximize spending in all categories too.

My recommendation for airline credit cards

Airline credit cards are an easy way to get your next free flight to Europe or other countries.

Most people should get a mid-range card like the Delta Gold, preferably from each major airline that will give you a credit card over time.

Then, by the end of the first year with the card, you can decide to keep the card (for instance if you check luggage) or downgrade it to the no fee card.

As a travel hacker, airline credit cards are free miles and your next free international or domestic trip.

Be aware of credit card rules for each issuers.

Churning cards no longer exists where people could just get the card for the sign-up bonus over and over again.

For most people, the only time you will put spend on an airline card is when you buy a ticket with that particular carrier.

Always do the math

Most airline credit cards, except the higher tier ones, waive the fee the first year.

This makes most airline credit cards a no brainer and an easy way to get to your next free international trip.

Like hotel credit cards, they should not be the credit card you spend the most money on or your primary card.

That should always be a general travel credit card.

Do you have any airline credit cards or have you had any in the past?