If you fly one airline consistently, these cards can be a very good option. They are not for people who carry a balance, because interest rates tend to be quite high. Rates have risen steadily during the past few years.
Many budget travelers believe airline credit cards are a less than attractive option unless you live near an airport dominated by one airline or your company requires a particular carrier. Often it pays to also consider bank-based cards that can offer more reward options.
Before you look at specific cards, it is best to look at your finances and travel patterns. Ask yourself seven simple questions about travel reward credit cards.
Please take these recommendations as a starting point for a more personal and in-depth study focused on your individual travel needs. Here are a few selections worth consideration as you begin your research.
British Airways Visa Signature Card
British Airways offers travel options around the world that few others can match. The current offer is 50,000 bonus miles for signing up, and you'll get two BA Miles for every dollar spent on the airline's products. Reward partners such as American Airlines and Alaska Airlines combine with British Airways to offer about 600 destinations to which you can fly. You'll get 2.5 miles for every dollar spent with British Airways, and 1.25 miles for every other dollar spent. Chase Bank USA is the issuing company. There is a 14.24 percent variable APR for unpaid balances.
The good news: A large choice of domestic and international flights, and an offer of a second, free companion ticket when you pay full price for the first fare. The bad news: High annual fee of $95, and only U.S. residents are eligible.
JetBlue Card from American Express
This card, for those who fly mostly within U.S. borders, is set up a little differently from most: Receive one point for every eligible dollar you spend, including gas, groceries, and household bills. One-way award flights start at 5,000 points and round trip award flights start at 10,000 points. The variable APR for purchases is high at 15.24 percent. There is an annual fee of $40.
The good news: Relatively short path to the first free ticket; lower annual fee than many other airline cards. The bad news: High APR, and JetBlue only flies in the U.S., Caribbean and Bermuda. Other cards allow for more destination options.
Gold Delta SkyMiles Credit Card from American Express
Delta's extensive network of cities and partners around the world makes anything they offer worth a look. American Express is welcomed in many fine outlets worldwide, but some budget travelers complain it skews upscale--and therefore is not as useful in their daily lives as other cards. Delta adds 20,000 SkyMiles after your first purchase. The annual fee is waived the first year, and $40 thereafter if you have a qualifying American Express Consumer Charge Card. If not, the annual fee is a rather steep $95. The APR for purchases is 14.5 percent. Miles do not expire as long as you do one of the following every two years: takes a qualifying flight on any Delta service; earns Delta miles through one of its program partners; or redeem miles for any Delta miles award. Not available in Puerto Rico, Saipan and the U.S. Virgin Islands. You can earn double miles for Delta purchases. Beware: Delta also offers an "options" card, with no annual fee, but it takes $2 to earn each mile.
The good news: SkyMiles are also accepted on 13 international carriers, including Air France, Air Jamaica and Singapore Airlines. Delta now awards 2,500 bonus miles when you make $10,000 in eligible purchases in a calendar year. The bad news: There is an earning limit of $60,000 of eligible spending per year; annual fee that can hit $95.
Southwest Airlines Rapid Rewards Visa Signature Card
New cardholders receive up to 16 Rapid Rewards the first time they use the card (enough for a free round trip on Southwest). Another eight credits are awarded for balance transfers within the first 90 days and you'll get two credits on your anniversary date of starting the account each year. After that, you'll need to charge $1,200 on the card to earn a Rapid Reward point. APR is 14.24 percent.
The good news: It's possible to get a free trip very quickly. The bad news: There is a $59 annual fee applied immediately -- no one-year grace period as found with many other offers.
Citi Platinum Select American Airlines AAdvantage Visa Signature
There is no annual fee the first year and up to 40,000 bonus miles after $1,000 in purchases with the card in first four months. This choice combines the resources of a banking empire and one of the North America's largest airlines. APR is 15.24 percent.
The good news: No blackout dates for reward travel and a chance to earn lots of bonus points. The bad news: At the beginning of the second year, you'll pay a steep annual fee of $85.
