Should You Sign Up for an Airline Credit Card While Flying?

The airline and flight attendants are getting a deal -- are you?

We've all had the cashier at a retailer push a store credit card at some point. They always have "special limited-time offers" and "can't miss this" deals.

Well, airlines are increasingly encouraging flight attendants to do the same thing with their co-branded airline credit cards. And as annoying as it is in a store on your way out, many people are twice as bothered by it when they're stuck in a flying metal tube they can't escape.

From the airline's perspective, a captive audience is a great marketing opportunity. And it's even a positive for the flight attendant; most airlines offer commissions on every successful application.

But is it as great for the passengers? It actually can be -- or it could be a disaster.

The ‘special’ offer vs. the public bonus

If you're a credit card collector or rewards chaser, the in-flight credit card offer can sometimes be a boon. That's because those "special limited-time deals" actually are, occasionally, special.

Every now and then, those in-flight offers have higher sign-up or welcome bonuses than you'd get from the public offer. They might come with more airline miles, a waived annual fee, or even an extra statement credit. At the same time, the offer could be the same -- or even worse -- than what you'd get on the issuer's website.

Of course, when you're stuck at 40,000 feet, it's not super convenient to do your due diligence. At least, not without buying into the in-flight wifi (hello, $5 wifi fee).

In the best case scenario, you can take the application home with you and fill it out later. Just be sure it has an offer code on it somewhere so you can get the correct sign-up bonus.

Unfortunately, in some cases, it may be a use-it-or-lose-it offer.

If the plane has free wifi, or you've already paid the fee so you can browse reddit from above, then definitely research the offer while you have the chance. If you can't apply later and there's no way to hop online to compare the offer with your other options -- you may have to simply let it go.

Sure, you might experience some sign-up bonus FOMO. But remember, that can go both ways. If the in-flight offer isn't as good as the public one, you could be kicking yourself when you get back down to earth.

Think twice, apply once

All of this being said, no matter how wonderful the sign-up bonus may be, it's only a great deal if you actually, you know, want the card in the first place. This is especially true of cards with annual fees -- and most airline credit cards have annual fees.

For instance, you may be on an American Airlines flight because it had the cheapest ticket. Next time, it could be Delta or Southwest. But that American Airlines credit card is probably only worth getting if you fly with AA multiple times a year.

And don't forget the overall consequences of getting a new credit card:

The hard inquiry

Credit applications mean hard credit checks. Each hard inquiry can sit on your credit report -- weighing down your credit score -- for up to two years. While the credit damage is typically minimal (a few points at most), it can get worse the more inquiries you rack up.

The average account age drop

One of the main factors in your credit score is your account age. This looks at both your oldest accounts as well as the average age of all of your accounts. Each new card you open decreases your average account age. This, in turn, can drop your credit score.

The new accounts impact

If you plan on applying for any major credit in the near future, such as an auto loan or mortgage, avoid opening new accounts at all. Lenders don't like to see you take on too much potential debt at once.

Even if you're not looking for a loan, many issuers these days have guidelines on how often you can apply for new cards. Chase's 5/24 Rule is probably the most infamous, but other issuers are implementing similar restrictions. It's worth thinking twice about whether that airline card deal is good enough to take up a slot.

Impulse buy candy -- don't impulse apply for new cards

At the end of the day, whether an in-flight card offer is worthwhile depends on your own situation. If you can get a great deal on a card you were already considering -- fantastic.

But if you're not sure you even need the card in the first place, you should probably do a bit more research before signing that dotted line. Missing out on a few extra miles is a small price to pay for being sure you're not making a financial mistake.