Free Flying with an Airline Credit Card

A Credit Article Contributed by Mark Mcclelland

What, Exactly, are Airline Credit Cards?

Airline affiliated credit cards allow you to apply a percentage of your total credit card purchases towards the accumulation of miles or points that can be applied against future purchases of airline tickets or other benefits. If you fly a lot, and make it a point to use your frequent flyer miles (since you fly a lot you are a member of the appropriate frequent flyer programs, aren't you? ), you could certainly benefit from the use of an airline credit card. And with all of the affinity program out there, finding one that's affiliated with your favorite airline shouldn't be all that difficult.

So, if you're diligent at collecting miles or points, you're next vacation in Hawaii could be at the expense of the airline... well, at least the flights would be at their expense. Even if you don't redeem your points or miles for tickets, it's often the case that you can redeem them for other types of rewards, like discounts at your favorite hotel, or restaurateur, or shows or plays.

And just recently, the major card issuers have begun to eliminate the annual fees they charged in an effort to broaden the appeal of their cards. This bodes well for the smart traveler.

Who Offers Airline Credit Cards?

Over the past couple of months several no-annual fee card have been issued:

United Airlines offers its United Airlines MileagePlus No Annual Fee Visa card. This card provides the owner with 1 mile for every $2 charged

American Airlines offers their American AAdvantage Bronze MasterCard, which provides 1 mile for every $2 charged. This card also gives the new cardholder and additional 2,500 miles the first time the card is used.

Frontier Airlines offers its Frontier Airlines Platinum MasterCard, which provides 1 mile for every $2 charged, and like the American Airlines card, there's an additional 2,500 miles given to the owner the first time the card is used.

Delta offers its Delta SkyMiles Options Card, which is issued by American Express. This card provides 0.5 mile for every $1 spent, and there is a bonus offer of 1,000 additional miles given to the new cardholder the first time the card is used.

Midwest Airlines offers its Midwest Airlines Platinum MasterCard, providing 1 mile for every $2 charged, along with a bonus of 2,500 miles the first time the card is used.

What Kind of Rates Do Airline Credit Cards Have?

Given the type of reward - travel - the card issuers have a tendency to charge interest rates that are typically in excess of 5% more than equivalent non-affiliated, or traditional, credit cards. But this need not be as bad as it might sound.

If you do a lot of traveling, already belong to one or more frequent flyer programs, and make regular use of your accumulated miles or other travel related rewards, like free upgrades and such, these cards could certainly help you maximize the benefits derived from all those long hours spent in that on-size-fits-all airline seat.