Best Airline Credit Cards of February 2020

Whether you want to go on a trip across Europe, or escape to a weekend getaway just a few hours from home, an airline credit card can help get you there. Explore our top picks for airline credit cards, some of which are from our partners. These cards offer truly incredible perks, points, or miles on every swipe, and new cardholder bonuses that can get you on the fast-track toward your next vacation.

The information related to the Southwest Rapid Rewards® Premier and United Explorer credit cards has been collected by The Ascent and has not been reviewed or provided by the issuer of this card.

One of the best ways to travel more cheaply, and sometimes more luxuriously, is by taking advantage of airline miles credit cards. In addition to the miles you’ll earn by putting purchases on the card, these airline miles credit cards also offer generous sign-up bonuses and travel perks like free checked bags, priority boarding, and premium airport lounge access. Airline miles can offer high value if you know where to pledge your loyalty, allowing you to book everything from one-way tickets to long-haul flights, business class tickets, and even round-the-world trips for next to nothing. We’ve researched the best airline miles credit cards and come up with this guide to help you maximize your airline perks and win some stellar deals.

Rewards cards are a dime a dozen, and card users can always opt for a simple and easy cash back card instead. So why are airline cards so popular? It really comes down to some big advantages that make airline cards a better choice for those who are frequently on the road.

• Big sign-up bonuses: These offers stand out for their massive sign-up bonuses to new qualifying cardholders. Some sign-up bonuses currently offer upwards of $750 in travel value. Even no-annual-fee cards offer as much as $200 in travel value. These bonuses are higher than you’d find with cash-back credit cards.
• No foreign transaction fees: Many credit cards charge a foreign transaction fee (usually 3% of the purchase amount) when you use the card overseas, or to pay a merchant who processes cards through a foreign bank. None of our best travel card selections charge a foreign transaction fee, in contrast to many other credit cards on the market.
• Avoid travel costs: Depending on the card, you may be able to dodge some travel expenses when you use it. Some airline cards and other travel cards allow you to bring a checked bag for free. A select few give cardholders Global Entry and TSA Pre✓ credits, which cover the application fee for security clearances that help you get through airport security faster.
• Airline and hotel status: Some cards give you immediate status with hotels and airlines just for having the card, which makes you eligible for enhanced loyalty points on every stay, late checkouts, and other perks when you book a stay or flight with a particular hotel or airline.
• Comfort at the airport: Some high-end travel cards offer cardholders access to thousands of airport lounges all around the world, where you can enjoy complimentary food or drinks while waiting for your flight.
• Travel insurances: Even some travel credit cards with no annual fee offer valuable travel insurance options from trip cancellation protection to lost and delayed baggage insurance. Premium travel credit cards up the ante with deeper coverage that could relieve the burden of almost any travel mishap. Note, qualifying for travel insurance will generally require you to place the entire purchase on your credit card.
• Free checked bags: Wipe out nuisance checked bag fees by carrying an airline-branded card. Most branded offers include this perk.
• Priority boarding: Airline-branded cards also tend to offer priority boarding for cardholders. Most branded offer include this perk as well.

Cards with annual fees typically offer more perks and rewards for every $1 you spend, so whether or not it makes sense to pay an annual fee typically comes down to how much you spend each year.

For example, take a no annual fee card that offers 1.5 miles for every $1 spent, thus rewarding you with $0.015 of travel value per $1 and a card that carries a $95 annual fee, but it rewards cardholders with 2 miles per $1 spent, for a rewards yield of $0.02 in travel value per $1.

We can determine which card is the better choice by dividing the difference in the annual fees by the differences in rewards yields. In this case, we find that the cards break even at $19,000 in annual spending ($95 fee divided by $0.005 = $19,000). If you spend more than $19,000, the annual fee card may net out more positively for you.

You’ll notice that both airline-branded miles credit cards and general travel credit cards made our list. The biggest reason airline-branded cards are included is that they can be very valuable for people who use one airline and can benefit from the various VIP perks, such as priority boarding, free checked bags, and travel credits. This is why airline-branded credit cards tend to work best for business travelers or frequent flyers. The downfall is these cards are notorious for devaluing miles, meaning that miles that were once worth $0.01 each have been devalued to $0.007 each, or even less.

General travel credit cards have more established redemption values and tend to be less complicated, making them a fit for people who value an array of redemption options in one card.

While we have many good things to say about airline cards, we recognize they aren’t for everyone. Used wisely, an airline credit card can help you earn rewards that can be used to pay for your next trip to Asia, or your next Uber ride to a ballgame.

There are two things you need to do to make sure that a travel card works for you, rather than against you.

• Don’t carry a balance -- It doesn’t make sense to spend and carry balances just to earn a small amount of travel rewards. Because credit cards carry interest rates in the double digits, paying just one month of interest can cost you more than you earn in travel from using a rewards card. Building up a balance in the pursuit of travel rewards is a losing strategy.
• Redeem rewards for travel -- Airline cards offer the best value when the points or miles you earn are redeemed for travel. Avoid redeeming for cash back, since virtually all travel cards give you less value per point or mile when you redeem for cash. If you don’t know that you will have a need for travel redemptions, a cash back card is probably better for you than an airline card.