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In this article:
- What Is an Airline Credit Card?
- Pros and Cons of Airline Credit Cards
- What Is a Travel Rewards Credit Card?
- Pros and Cons of Travel Rewards Credit Cards
- Key Differences Between Airline and Travel Credit Cards
- Who Should Choose an Airline Credit Card?
- Who Should Choose a Travel Rewards Credit Card?
- Should You Get Both an Airline and a Travel Credit Card?
Airline credit cards and travel credit cards both offer cost-saving and trip-enhancing features that frequent travelers love. Choosing between the two comes down to understanding how each card works, weighing the pros and cons of each and selecting the right one for your travel habits.
What Is an Airline Credit Card?
An airline credit card allows you to earn rewards and enjoy flight-specific benefits when you book with a specific airline. Purchases on an airline card earn frequent flyer rewards, with the highest rewards earning coming from airline spending. Earning rewards can also help you move up in the airline's frequent-flier program, unlocking access to additional perks.
With an airline credit card, you can redeem rewards for free flights, seat upgrades and other flight-related perks. Many cards also offer extra benefits like flight discounts, free checked baggage and priority boarding.
Pros and Cons of Airline Credit Cards
Airline credit cards can offer savings and travel perks for loyal customers. However, their rewards structure and benefits may be less useful for travelers who prefer more flexibility. Explore some advantages and disadvantages of airline credit cards.
Pros
Miles for future flights: The miles you accumulate can be redeemed for future flights with the airline or its partners. Depending on the program, you may also be able to redeem miles for seat upgrades, in-flight purchases or vacation packages.
Status in a frequent-flier program: Purchases can contribute to earning elite status in the airlines loyalty program. Earning elite status can unlock value benefits like priority check-in, early boarding groups and bonus miles on paid flights.
Airline discounts: Some airline credit cards offer discounts when you use the card to purchase flights directly with the airline. You may also receive savings on in-flight purchases. These discounts can add up if you fly regularly with that airline.
Airline-specific benefits: Airline cards often include perks that improve your overall travel experience. These benefits may include free checked bags, priority boarding, airline lounge access and complimentary seat upgrades when available.
Cons
Less flexibility: You have to book with a specific airline or its partners to get significant value from your rewards. Award flights may also be restricted based on travel dates, destination or plane seats.
Limited access to travel benefits: Airline credit cards typically offer fewer travel-related perks like trip cancellation or travel insurance. These benefits provide financial protection if something goes wrong while you're traveling.
Lower rewards on everyday spending: Purchases outside the airline often earn rewards at a lower rate, often one mile per dollar. If you use the card regularly for non-airline purchases, you may earn rewards more slowly compared with other types of rewards cards.
Potentially high annual fees: Many airline credit cards charge annual fees that can go up to several hundred dollars. The benefits may outweigh the perks if you only fly occasionally.
What Is a Travel Rewards Credit Card?
A travel rewards credit card allows you to earn points on a range of spending including flights, hotel, rental cars and everyday spending. Many travel cards also offer bonus rewards for travel-related purchases. In addition to points, these cards often include travel protections such as trip cancellation, lost or delayed baggage coverage and rental car insurance.
Pros and Cons of Travel Rewards Credit Cards
Travel rewards credit cards give you more flexibility, but accessing the most valuable perks may come with a high annual fee. Here are some pros and cons of travel rewards credit cards.
Pros
Flexible redemption options: Travel rewards points can be redeemed for flights, hotels, cruises, rental cars, statement credits or even cash back, which gives you more choices than airline-specific miles. You may also be able to transfer points to participating airline or hotel loyalty programs, which gives you even more flexibility when you're planning trips.
Travel protections: Cards may include trip cancellation and interruption coverage, lost or delayed reimbursements, rental car insurance, airport lounge access and expedited security credits. At a minimum, these protections can provide peace of mind when you're traveling.
Potentially high welcome bonus: Many travel credit cards offer large intro bonuses if you spend a minimum amount in the first few months of opening your card. These bonuses sometimes provide enough points for a round-trip flight, several hotel nights or other travel expenses.
Cons
Minimal airline-specific benefits: Spending on travel credit cards doesn't directly help you gain airline loyalty status. In addition, simply using the card won't provide access to airline specific perks like priority boarding or seat upgrades.
Higher cost for premium benefits: The most valuable perks are often reserved for premium credit cards with higher annual fees. To make the fee worthwhile, you'll typically need to travel frequently or spend more to take full advantage of the benefits.
Unpredictable rewards value: The value of travel points often depends on how you redeem them. For example, redeeming points for travel through a card issuer's portal may provide more value than redeeming them for a statement credit.
Key Differences Between Airline and Travel Credit Cards
There are a few major differences between airline credit cards and travel credit cards.
Rewards Type
Airline credit cards earn miles in the airline's frequent-flier program, while travel rewards cards earn points that can be redeemed more broadly.
Where You Can Redeem
You can usually redeem airline miles with that airline or its partner. Travel points are more versatile and can be used for statement credits, purchases or transfers to multiple travel partners.
Learn more: The Worst Ways to Redeem Rewards
Perks
Airline cards focus on airline-specific benefits like waived check baggage fees, priority boarding and complimentary seat upgrades. Travel rewards cards provide flexible protections and perks including trip cancellation and baggage delay coverage.
Best For
Airline credit cards are best suited for travelers who frequently fly the same airline and want perks like free checked bags or priority boarding. Travel rewards cards are usually best for people who want travel perks and rewards but prefer to travel based on destination or cost.
| Feature | Airline Credit Card | Travel Credit Card |
|---|---|---|
| Rewards type | Miles | Points |
| Where you can redeem | With the airline or its partners | Through the card issuer's portal, statement credit or transfer to travel partners |
| Perks | Airline-focused, exclusive | Flexible, travel-focused |
| Best for | Brand-loyal frequent fliers | Travelers who value flexibility and choice |
Who Should Choose an Airline Credit Card?
Airline credit cards are ideal for travelers who prefer a specific airline and want flight-based perks.
- Frequent fliers with a preferred airline: Regularly flying the same airline maximizes the value of rewards and airline perks.
- People who live near an airline hub: Convenient flight options and perks like waived baggage fees and priority boarding offer significant time and cost savings for family vacations. You can also benefit from airline perks, even if you only fly a few times each year.
- Travelers seeking airline elite status: Credit card spending can meet the minimum spend for earning elite tiers in an airline's frequent-flier program.
Who Should Choose a Travel Rewards Credit Card?
Travel rewards credit cards are best for people who prefer flexibility in earning and redeeming rewards.
- Frequent fliers who aren't brand loyal: Because you're not devoted to an airline brand, you'll have more opportunities to redeem rewards on a wide range of travel including flights, hotels, car rentals and more. Travel rewards can often be redeemed for a statement credit or transferred to another airline or hotel loyalty program, sometimes at a 1:1 value.
- People who spend across multiple categories: Travel cards often reward more than just flights. Many offer bonus points on travel, dining and other everyday purchases, allowing you to earn rewards on a larger portion of your spending.
- Travelers who value protections: Travel credit cards come with benefits that cover the cost if something goes wrong while you're traveling. Perks like trip cancellation coverage, trip interruption coverage and rental car insurance provide security for travel plans.
Should You Get Both an Airline and a Travel Credit Card?
Having both an airline credit card and a travel rewards credit card can help you maximize rewards and travel perks, especially if you travel several times a year and spend enough to earn rewards on multiple cards.
- Combine airline-specific and flexible rewards: Use an airline-specific card for benefits like free checked bags and priority boarding in addition to flexible points that you can redeem across a variety of airlines, hotels and travel providers.
- Maximize rewards: Using both types of credit cards also allows you to optimize spending on airline travel and everyday spending.
- Flexible travel planning: With both cards, you're not locked into a specific airline for every trip. You can use your airline miles when it's more beneficial to redeem through that airline or its partners. Or, you can use your travel rewards points to book on a different airline.
Consider your travel frequency, spending habits and willingness to pay multiple annual fees. If you don't travel often, it may not be worth paying multiple annual fees or managing multiple cards.
Additionally, applying for multiple rewards credit cards in a short period of time can affect your credit. Some card issuers may deny your application if you open too many rewards cards in a certain timeframe.
Learn more: How to Choose a Rewards Credit Card
Frequently Asked Questions
Are Airline Credit Cards Worth It?
Airline credit cards are worth it if you're a brand-loyal frequent flier or value airline-specific perks. You can access discounts on flight booking and earn elite tiers in the airline's frequent-flier program by using your card often.
Can I Transfer Airline Miles to Other Airlines?
Because airline miles are part of a brand's loyalty program, you can typically only transfer airline miles to partner airlines, not to other major airline brands. On the other hand, general travel points can be transferred to multiple participating airlines.
Do Travel Credit Cards Have Higher Annual Fees?
Premium travel cards often carry higher annual fees, but they include higher rewards and travel protections that justify the cost as long as you take advantage of the perks.
The Bottom Line
Airline credit cards offer benefits for frequent fliers who are loyal to an airline, while travel rewards cards provide flexibility and broader redemption options. Choosing the right card depends on your travel habits, spending, and the value you place on perks and protection. That might even mean having a combination of both card types.
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