Nine Arguments Against Utilizing Airline Credit Cards: A Look at Their Advantages and Disadvantages

Airline credit cards and flexible rewards cards each have their unique advantages when it comes to earning points for flight purchases. Here's a breakdown of the key differences to help you make an informed decision.

If you frequently fly with more than one airline, an airline credit card may not be the best choice. These cards are typically tied to a specific airline, limiting your options for earning and redeeming miles. On the other hand, flexible rewards cards offer greater redemption options, allowing you to utilize different airlines for your outbound and return flights.

One advantage of airline credit cards is the opportunity to earn a significant welcome bonus. However, when it comes to earning points on flight purchases, flexible rewards cards often outperform. For instance, some flexible rewards-earning cards can earn as much as 10x points per dollar spent on flight purchases, while airline-branded cards may only offer 1 mile per dollar spent on general travel.

Flexible rewards programs also have airline partner options, allowing you to transfer points to participating airlines and then redeem those miles for award flights. This flexibility can be particularly advantageous if you want to maximize your earnings on flight purchases.

Another key consideration is the trip insurance benefits offered by the cards. Premium cards such as the Amex Platinum card, Capital One Venture X card, or Chase Sapphire Reserve card have greater trip insurance benefits, which may be important if you travel frequently.

Having access to an airport lounge can also add comfort to any journey, and some airline credit cards offer complimentary or discounted lounge access. However, if this is a priority for you, flexible rewards cards can also provide lounge access through networks like Priority Pass.

Airline credit cards offer additional flight benefits such as free checked bags, priority boarding, inflight purchase discounts, and more. Some airline-branded credit cards also offer annual companion certificates, which can result in significant savings.

However, if you have top elite status in an airline frequent flyer program, the added value of having an airline-branded card may be diminished. In this case, a flexible rewards card may offer a more advantageous earning structure.

In conclusion, the choice between an airline credit card and a flexible rewards card depends on your travel patterns, the airline(s) you fly with most frequently, and the benefits that are most important to you. Some good travel rewards cards for flight purchases include The Platinum Card from American Express, Capital One Venture X Rewards Credit Card, Chase Sapphire Reserve, and Chase Sapphire Preferred Card.

Remember, the faster you earn rewards and use them, the lesser the risk of devaluation. So, whether you choose an airline credit card or a flexible rewards card, make sure to use your points wisely and enjoy your travels!

Nine Arguments Against Utilizing Airline Credit Cards: A Look at Their Advantages and Disadvantages