4 Features to Look for in an Airline Credit Card

This article tells you what to look for in a credit card from an airline.

Over the past few years, airline credit cards have been getting more and more popular. Airlines and other companies in the travel industry benefit when customers use their services more often. This also makes customers more loyal to their brands. People who have a good credit history get more value out of their credit cards. Fundamentally, airline credit cards work the same way. When purchases are charged to the card, the cardholder earns travel points. These points can be redeemed in different ways, such as for free flights, hotel stays, car washes, etc. Here are four important things to think about when choosing an airline credit card.

The cost of borrowing money is measured by the annual percentage rate (APR) (APR). If you have good credit, you can get a low APR, which is prime plus 4%. Most credit cards have a "variable rate" plan where the annual percentage rate (APR) changes based on how the economy is doing. Interest rates are different for each card and depend on things like the grace period, annual fee, bonus points, and so on. If you don't carry a balance from month to month, you don't have to worry much about interest rates. However, if you do carry a balance from month to month, you can choose from a number of airline credit cards with low interest rates. Some credit cards offer a 0% introductory rate on balance transfers for a certain amount of time, usually 12 months.

Limit on how much you can spend: The limit on airline credit cards can be anywhere from a few hundred dollars to several thousand dollars. With higher spending limits, the minimum monthly payment may go up. Some cards let you spend more than your credit limit, but you have to pay the extra amount and any fees in the payment for the next month. Credit card bills can quickly become too big to handle. Before choosing an airline credit card, people who like to spend a lot should think carefully about the spending limit.

Compatibility with other frequent-flier programmes: It is important to check if an airline credit card has this feature. Portability of miles points is a good thing because it lets you use more than one airline to redeem your points. Users have more places to choose from because they aren't stuck with just one airline. Bank-sponsored airline credit cards work better with other frequent-flier programmes than airline-sponsored credit cards, which are usually only good for one airline.