When it comes to choosing the right travel rewards credit card, the decision often boils down to one crucial question: Airline Credit Cards vs. General Travel Cards. Both types of cards offer unique advantages, but understanding the key differences can help you make a more informed decision based on your travel habits and financial goals.
In this blog, we’ll explore the benefits and drawbacks of each card type, how they align with different travel needs, and when you should opt for one over the other. Whether you’re a frequent flyer, a budget-conscious traveler, or someone who wants flexibility in earning and redeeming rewards, this guide will provide clarity on how to choose the best card for your situation.
What Are Airline Credit Cards?
Airline Credit Cards are co-branded cards issued by credit card companies in partnership with specific airlines. These cards allow you to earn rewards in the form of airline miles or points, which can be redeemed for flights, seat upgrades, and other travel-related perks with the partnered airline. These cards often come with exclusive benefits such as free checked bags, priority boarding, and access to airport lounges.
One of the main reasons people choose airline credit cards is to earn elite status with an airline. Your purchases contribute to earning miles or status points. This can unlock perks like complimentary seat upgrades, bonus miles, and priority treatment at the airport.
However, airline credit cards also have some limitations. They are typically tied to one airline or its alliances. You have fewer options when it comes to redeeming your miles. If you tend to fly with multiple airlines, the lack of flexibility might be a drawback. Additionally, these cards often come with annual fees, which you’ll need to weigh against the benefits you receive.
What Are General Travel Credit Cards?
Unlike airline-specific cards, general travel cards offer more flexibility in terms of how you earn and redeem your rewards. These cards are not tied to a specific airline, hotel chain, or travel provider, which means you can earn rewards on a wide range of travel-related purchases. Whether you’re booking flights, hotels, rental cars, or even cruises, a general travel rewards card can earn you miles, points, or cash back on every purchase.
General travel cards often provide the added benefit of allowing you to transfer your rewards to a variety of airline frequent flyer programs, giving you the option to book with the airline of your choice. This feature is particularly beneficial if you don’t have loyalty to one airline or if you like to take advantage of the best deals available.
Additionally, general travel cards can offer greater flexibility in how you use your points. You may have the option to redeem your points for travel through a credit card issuer’s travel portal, or even for non-travel-related rewards, such as gift cards, merchandise, or cash back.
Airline Credit Cards vs. General Travel Cards: Key Differences
1. Types of Rewards Offered
When comparing Airline Credit Cards vs. General Travel Cards, one major difference is the type of rewards offered. Airline credit cards usually offer rewards tied to their frequent flyer program. This means your points can only be redeemed for flights or upgrades with the airline or its travel partners. This limitation can make it harder to redeem your rewards. If your travel needs change, it can be difficult to adjust. Additionally, if the airline changes its program, it may limit your redemption options.
On the other hand, general travel credit cards offer a broader range of redemption options. Points can be used for flights, hotels, car rentals, and even experiences like guided tours or event tickets. Some general travel cards also allow you to transfer your rewards to a variety of airline frequent flyer programs, so you can still benefit from the miles you earn even if you book with a different airline.
2. Redemption Flexibility
Another key consideration when deciding between Airline Credit Cards vs. General Travel Cards is how you can redeem your rewards. With airline-specific cards, your redemption options are often more restrictive. While you can redeem miles for flights with the airline and its partners, you may face blackout dates or limited availability for award seats. You may also have fewer options for redeeming miles on non-flight travel-related expenses like hotel stays or car rentals.
General travel rewards cards, however, offer more flexibility in this regard. Since you’re not tied to a specific airline, you can book travel with any provider that accepts your rewards, and some general travel cards even allow you to redeem your points for things like rental cars, hotels, and vacation packages. This flexibility makes general travel cards an excellent choice for those who value variety and want more freedom when it comes to booking their travel.
3. Earning Rewards
When it comes to earning rewards, airline credit cards often offer higher rewards rates for purchases made directly with the airline or its partners. For example, many airline cards provide bonus miles for buying tickets, checking bags, or making in-flight purchases. However, these rewards are typically limited to the airline’s brand and may not apply to other types of purchases.
General travel cards tend to offer more versatile earning rates. While they may not provide the same level of bonuses for airline-related purchases, they often reward you with points or miles on a wider variety of everyday spending categories, such as dining, groceries, and travel. For example, some general travel cards offer 2X points on all purchases or higher rates on travel-related spending.
4. Elite Status and Perks
One of the standout features of airline credit cards is the ability to earn elite status more quickly. Elite status with an airline comes with a host of benefits. These benefits include priority boarding, free checked bags, seat upgrades, and access to airport lounges.
If you frequently fly with the same airline, an airline card can help you reach elite status faster. This is possible by earning status-qualifying miles or points through your everyday purchases.If you value the benefits that come with elite status, an airline card may be a better fit for you.
5. Annual Fees and Costs
Both airline credit cards and general travel cards may have annual fees. The cost varies depending on the card’s benefits. Airline credit cards usually have fees ranging from $95 to $450 or more. These fees depend on perks like free checked bags, priority boarding, and airport lounge access.
General travel cards also have annual fees, but they tend to be more affordable. Fees typically range from $95 to $550. Premium general travel cards, like the Chase Sapphire Reserve, offer generous rewards, travel protections, and many redemption options. However, these cards may come with higher annual fees.
When Should You Choose an Airline Credit Card?
An airline credit card makes sense if you’re a loyal customer of a specific airline and frequently fly with them. These cards are particularly beneficial for those who:
- Fly regularly with one airline: If you’re loyal to a specific airline and fly frequently with them, an airline card can help you accumulate miles quickly and earn elite status benefits.
- Want to earn status: If you’re looking to earn elite status with your preferred airline, an airline card can help you achieve that goal more quickly by allowing you to earn status-qualifying miles or points through everyday purchases.
- Value airline-specific perks: If perks like free checked bags, priority boarding, and lounge access are important to you, an airline credit card can provide significant value.
When Should You Choose a General Travel Card?
A general travel card is ideal if you value flexibility and want to earn rewards that can be used for a wide range of travel-related expenses. This type of card is best for:
- Frequent flyers with no loyalty to one airline: If you’re someone who books flights based on the best deals or schedules, a general travel card gives you the freedom to choose any airline without being restricted to one.
- Travelers who want flexible redemption options: With a general travel card, you can redeem your points for flights, hotels, rental cars, and even cruises, making it a versatile option for travelers who want more choices.
- Occasional travelers: If you don’t travel as frequently, a general travel card may offer the best value since it allows you to earn rewards on all types of purchases, not just airline-related ones.
Maximizing Your Rewards: A Combination of Both?
In many cases, the best approach is to combine both types of cards. By holding both an airline credit card and a general travel card, you can maximize your rewards. For example, use the Chase Sapphire Preferred for everyday spending. Use a United Airlines card to take advantage of elite status perks and benefits.
This combination strategy works well for frequent travelers. It provides flexibility while still offering the perks and status of an airline credit card.
Conclusion
Choosing between Airline Credit Cards vs. General Travel Cards ultimately depends on your travel habits and preferences. If you’re a frequent flyer with a particular airline, an airline credit card could be the best option. It helps you earn elite status and enjoy valuable perks. However, if you value flexibility, a general travel card may be a better fit. It allows you to earn rewards on a wider range of purchases and offers more redemption options.
In some cases, combining both types of cards can help you maximize rewards. This strategy ensures you get the most out of your travel experience. The key is to understand your travel needs, spending habits, and loyalty preferences before choosing the best card.
By considering the benefits and drawbacks in this article, you can make an informed decision. This ensures your choice aligns with your financial goals and travel lifestyle.