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U R @: Education Center : Rewards Credit Cards : Airline Credit Cards Compared
AIRLINE CREDIT CARDS COMPARED
Although airline miles/frequent flyer credit cards are extremely popular, only a few of these cards provide good value to consumers. The primary reason for this is the glaringly large annual fees most airline specific credit cards charge. On the average, a credit card for a specific airline will charge consumers over $60 a year just to carry their credit card. On top of that, most airline specific credit cards also charge interest rates that are 20-25% higher than average credit card interest rates.
Fortunately, not all airline miles credit cards are the same. In fact, many provide excellent value by offering consumers free miles, low interest rates, and no annual fees. The three main cards that fall into this category are the Miles Card from Discover, the Citi PremierPass, and the American Express Blue Sky.
The Miles Card from Discover stands out as the best of breed for airline miles credit cards. Not only does it offer a 0% introductory rate on purchases and balance transfers, but it also offers an extremely competitive long term interest rate. On top of the value this card offers in terms of savings, the Miles Card also offers 12,000 free miles after your first purchase and 1 miles for every dollar spent. Miles you earn can be redeemed for airline tickets, cruises, vacation packages, merchandise, hotel and car rental certificates and more. Plus, there are no blackout dates with air travel rewards.
For current rate information or to apply online for the Discover Miles Card, click here.
The Citi PremierPass offers two levels of airline rewards. The standard Citi PremierPass charges no annual fee, offers a regular interest rate that is substantially lower than standard airline credit cards, a 0% interest rate on balance transfers, and gives you 5,000 free miles. When you use your card, you earn 1 miles for every dollar spent. Plus, you earn 1 flightpoint for every 3 miles flown. Rewards points can be redeemed for tickets on any airline with no blackout dates, or for merchandise and giftcards through Citi’s Thank You Rewards Network.
The Citi PremierPass Elite Level differs from the standard PremierPass in a few fundamental ways. First, there is an annual fee of $75. However, there is also an initial free mile bonus of 15,000 points. Additionally, cardholders earn 1 flightpoint for every mile flown, 2 purchase points for every dollar spent at gas stations, drug stores, and grocery stores, plus 1 miles for all other purchases. A final feature of this card is unlimited complementary companion travel (certain fare restrictions do apply.) For many, the added features of the Elite Level more than offset the annual fee.
For current rate information or to apply online for the Citi PremierPass, click here.
The American Express BlueSky credit card offers a 0% introductory rate on purchases and a low long term APR. Unlike the Miles Card and the PremierPass card, BlueSky does not offer free bonus miles. However, reward points earned with this credit card are extremely flexible. To start, you earn a $100 dollar credit that can be used for any travel expense for every 7500 points earned. Thus, with a relatively small amount of points, you can use $100 towards airline tickets, hotels, car rentals or cruises. With most cards, 7500 points are only worth about $75 dollars. Thus, the points you earn with BlueSky are worth about 33% more than those earned with other cards.
For current rate information or to apply online for American Express Blue Sky, click here.
Overall, SmartCreditChoices considers the Discover Miles Card to be the standout credit card in the airline rewards category. Its 0% intro rate, no fee program, and hefty 12,000 bonus miles make it the easiest airline rewards card to benefit from. However, bigger spenders or frequent flyers could reap more benefits from the Citi PremierPass or the Amex BlueSky.
To view all airline rewards credit cards offers, click here.
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