3 Ways Airline Credit Cards Could Save You Money

With all the recent chatter about increased checked bag fees, many travelers are trying to decide whether to add an airline credit card to their wallets. Traveling can be expensive, and extra fees like seat selection and checked bag fees can make a vacation even more costly. But having the right credit card may help you reduce your travel spending. I'll outline a few ways airline credit cards could save you money.

1. Check baggage fees

With the news of airline baggage fee increases, you may be looking for a way to avoid this additional travel expense. You can access free checked bag perks with the right airline credit card. Some airline cards include a free checked bag for the cardholder and a set number of companions traveling on the same reservation.

With some airlines charging up to $40 for one checked bag, this credit card benefit is of value for frequent travelers. If you don't want to jam all your essentials in a carry-on bag when you fly, this benefit could help you keep more money in the bank.

One credit card with this perk is the Delta SkyMiles® Gold American Express Card. The cardholder and up to eight companions traveling on the same reservation can each check their first bag without paying fees (see rates and fees, terms apply). On domestic flights, Delta charges $30 per checked bag each way. This credit card could offer savings of $240 per round-trip flight for a family of four.

2. Discounts on eligible in-flight purchases

Some airlines extend a discount on select in-flight purchases to fliers who have one of their credit cards. You must charge your airline credit card for a qualifying in-flight purchase to get this discount. Eligible expenses may include wifi charges, food, and beverages.

Benefits can vary, so review your credit card benefits before you fly so you know what to expect. Most credit card issuers provide this discount as a statement credit to your credit card account. A statement credit like this could make your next credit card bill cheaper.

The United Quest℠ Card is one credit card with this benefit. At every card anniversary, you can get up to $125 in statement credits for United purchases charged to your card (see rates and fees, terms apply). Eligible expenses include airfare, seat upgrades, and baggage fees.

3. Annual credits

Another way travelers can save money when using their airline credit cards is with annual credits. Some cards include this perk, which could be a great way to save money on travel costs. Before using this perk, review your account benefits to know what to expect. Annual credits like this won't make you rich but can make your next vacation less costly.

One example of an airline credit card with this perk is the Southwest Rapid Rewards® Priority Credit Card. This card offers a $75 annual Southwest credit for eligible purchases made with your card (see rates and fees, terms apply). If you buy a $150 Southwest ticket and have yet to use your credit, you'll earn a statement credit of $75 to your account. This card is a solid option for Southwest loyalists.

Look to travel and airline credit cards for savings

It can be beneficial to use rewards credit cards. Frequent travelers like using airline and travel credit cards to earn rewards and save money. If you have rewards cards like this, ensure you're utilizing all of the available benefits to maximize the value you get. If you want to apply for an airline credit card, review our list of the best airline credit cards.