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Evaluating the worth of airline credit cards amidst program changes

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Evaluating the worth of airline credit cards amidst program changes
Research
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Augusta Stone Associate credit cards writer | The Points Guy

Airline credit cards have seen significant changes over the decades, with more options and benefits like transferable points now available to consumers. However, the increasing variety and constant changes in terms and benefits can confuse those trying to evaluate their actual worth, especially cards with high annual fees.

Key factors should be considered before deciding on an airline card. When assessing options, evaluating the welcome offers is crucial. For example, the Southwest Rapid Rewards Performance Business Credit Card offers 80,000 bonus points after a $5,000 expenditure in the first three months.

Annual fees are another consideration. While some cards do not charge these fees, most popular cards range from $100 to $150 annually. On the higher end, fees can exceed $500, but cards offering lounge access and earning elite-qualifying points could justify this cost.

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Airline cards now compete with non-airline travel rewards cards by offering bonus miles in categories beyond airline purchases, such as dining and grocery stores. The United Explorer Card, for instance, offers 2 miles per dollar on hotel and dining purchases. Earning categories should align with a cardholder's spending habits.

Travel benefits from airline cards, such as free checked bags and priority boarding, can offer significant savings based on usage. Meanwhile, companion ticket benefits vary, like the Alaska Airlines Visa Business card that offers a companion fare starting from $122.

A crucial drawback is the devaluation of frequent flyer programs, with many eliminating award charts and dynamically pricing tickets. It's advised to assess the long-term value of these programs. Application restrictions by major issuers, like Chase's 5/24 rule, also affect eligibility for new cards and bonuses.

For those interested in broader earning opportunities, cards with transferable points provide flexibility, allowing point transfers to various partners and offering bonus earnings across diverse categories.

In summary, the decision to carry an airline credit card should weigh welcome offers, ongoing travel perks, and the value of transferable points programs.

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