Airline credit cards are some of the best credit cards for frequent travellers. However they do not suit every credit card user. It is important for credit card users to work out if they will suit them.
Airline credit cards tend to be offered by airlines to their frequent travellers or people who may become frequent travellers and they are designed to increase brand loyalty from people who fly frequently. Many frequent flyers will tend to use the cheapest or most convenient airline, and airlines want to convert these people to the simplicity of using a single airline.
Although airline credit cards are branded with the airline’s brand and they tend to be offered through their marketing channels, they are usually run by a third party bank such as GE Money. They will also be processed by a large credit card processor, usually VISA or MasterCard but sometimes American Express.
The airline credit cards tend to be aimed at more affluent card users. This will mean that they will tend to have a higher annual fee than is usual but they will also offer insurance on the goods that are bought with the credit card. As they are aimed at travellers they will tend to have good foreign transaction policies, and frequent travellers should check if these foreign transaction fees are low.
Airlines are starting to offer gold and platinum cards under the airline’s brand. There are also a number of credit cards that will integrate an existing frequent flyer account into the credit card account, meaning that any tickets that are bought on the credit card are automatically entered on to the frequent flyer program.
There are a number of factors for a credit card user to consider before taking a credit card. The first seems obvious, but should be asked, and that is whether the card user is likely to be a frequent flyer. If they are not then the main rewards from the credit cards are not likely to be much use.
The next thing to consider is whether the card user is likely to be going to the destinations that the airline is going to. If this is not the case then a more generic air miles card may be more use to the card user as although the rewards are less likely to be generous they will be more usable.
