Why I’m Moving on From Airline Credit Cards

While airline credit cards may offer interesting perks and benefits, but for most travelers, they may not be the best choice.

Over the years, I’ve applied for several airline cards myself. However, I’ve come to realize that a general travel rewards card that earns credit card points may be more valuable. In the long run, the versatility of these rewards credit cards offer tends to outweigh the benefits tied to a single airline.

In this article, I’ll break down the key differences between the 2 types of credit cards and share why I ultimately changed my strategy.

Are Airline Credit Cards Worth It?

Airline credit cards are a type of co-branded credit card issued by a bank in partnership with an airline or airline alliance. They work just like any other credit card — you can charge purchases to your card, and you will then get a monthly statement bill.

However, airline credit cards also earn rewards on purchases within the airline’s frequent flyer program. You can redeem these miles for flights on that airline or partner airlines. Here’s a look at some of the most valuable perks of an airline credit card.

1. Welcome Offer

For many, including myself, the most appealing part of an airline credit card is the associated welcome bonus offer for opening a new account. This welcome offer can be worth hundreds of dollars and is typically the largest amount of miles you get at a single time.

Additionally, welcome offers change from time to time. It is best to apply for an airline card (or any card for that matter) when the welcome bonus offer is at its all-time high.

2. Bonus Miles

You’ll earn airline miles for every dollar spent on eligible purchases. The earning rates can vary, but you often earn more points on purchases made directly with the airline, including flights, baggage, or upgrades.

Some airline credit cards also offer higher earnings on travel-related expenses such as hotels and car rentals, while others even earn more at restaurants and gas stations.

3. Benefits and Perks

Many airline credit cards offer complimentary perks to cardholders. While airline credit card perks vary from card to card, most offer free checked bags, priority boarding, and discounts on inflight purchases.

Many more premium airline credit cards offer perks, including companion tickets and even airport lounge access. Additionally, some airline credit cards offer a way to earn (or fast-track) elite status with the airline’s loyalty program.

Why I Prefer Transferable Rewards Cards Over Airline Credit Cards

After several devaluations of some of my favorite loyalty programs, I quickly realized that airline miles could lose value rather quickly. Instead of accumulating many miles within a single program, I began earning transferable rewards points through a bank, like American Express Membership Rewards or Chase Ultimate Rewards.

For instance, I fly out of Chicago O’Hare International Airport (ORD) regularly, I thought it would be a good idea to earn a lot of United Airlines MileagePlus miles. However, after several devaluations of the MileagePlus program, the miles I worked so hard to earn were losing value.

Leveraging More Valuable Rewards

These days, I focus more on earning transferable rewards points. Depending on the bank’s transfer partners, you can move those points to a variety of airline and hotel loyalty programs. For example, you can transfer Chase points at a 1:1 ratio to United MileagePlus, meaning I can rack up United miles without ever stepping foot on one of their planes.

For example, the popular Chase Sapphire Preferred^® Card is one of the best travel rewards cards on the market. The Chase Sapphire Preferred card earns 5x points on all travel booked through Chase Travel, 3x points on dining and online grocery purchases, and 2x points on all travel worldwide.

BEST BEGINNER CARD

Terms Apply / Rates & Fees

Chase Sapphire Preferred^® Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

Chase Sapphire Preferred^® Card

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

Welcome Offer

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.

60,000 bonus points

UP's Offer Valuation*:

$1,200

Annual Fee

$95

APR

20.49% - 27.49% Variable

Credit Recommended

Upgraded Points credit ranges are a variation of FICO^®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.

Good to Excellent (670-850)

Why We Like This Card

The Chase Sapphire Preferred^® card is one of the best travel rewards cards on the market. Its bonus categories include travel, dining, online grocery purchases, and streaming services, which gives you the opportunity to earn lots of bonus points on these purchases.

Additionally, it offers flexible point redemption options, no foreign transaction fees, and excellent travel insurance coverage including primary car rental insurance. With benefits like these, it’s easy to see why this card is an excellent choice for any traveler.

Pros & Cons

Pros

• 5x points on all travel booked via the Chase Travel portal
• 5x points on select Peloton purchases over $150, up to 25,000 total points (through December 31, 2027)
• 5x points on Lyft purchases (through March 31, 2025)

Cons

• $95 annual fee
• No elite benefits like airport lounge access or hotel elite status

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Card Highlights

• Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
• Enjoy benefits such as 5x on travel purchased through Chase Travel^SM, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
• Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel^SM. For example, 60,000 points are worth $750 toward travel.
• Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
• Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
• Member FDIC

Financial Snapshot

• APR: 20.49% - 27.49% Variable
• Foreign Transaction Fees: None

Rewards Center

Chase Ultimate Rewards

I’ve also learned that having multiple transfer options creates more redemption opportunities, especially with airline alliance partnerships. For example, since both United and SWISS Airlines are part of the Star Alliance, I could use 88,000 United MileagePlus miles to book a nonstop, one-way business class flight from Chicago to Zurich (ZRH) on SWISS.

However, I could also book that exact same flight for even less — just 70,000 Air Canada Aeroplan points — which represents a much better value.

Since both United MileagePlus and Air Canada Aeroplan are Chase transfer partners, I could choose which program I wanted to transfer Ultimate Rewards points to. In this case, Air Canada Aeroplan is clearly the much better option.

If I only had United miles, I would be stuck paying a lot more miles for the same redemption.

Final Thoughts

Airline credit cards can be a good option for travelers who fly frequently on a single airline and can take advantage of perks and benefits. For most travelers, the perks and benefits of an airline credit card will not outweigh the flexibility or earning potential you can get with a transferable rewards card.

However, for many travelers, earning transferable rewards points on cards like the Chase Sapphire Preferred card offers a better value. These points can then be transferred to many airline and hotel transfer partners, providing flexible redemption options.