How to Choose the Best Airline Miles Credit Card

Many airlines offer airline miles credit cards in partnership with credit card companies or banks. When you use one of these credit cards for purchases, you can earn air miles in the airline rewards program you’ve joined. Typically, every dollar you spend with the card gets you one to three air miles¹, but this varies. The value of miles also varies, depending on how you redeem them. When it comes to earning miles, each airline miles credit card has its own rewards structure for how miles are earned. With some cards, you may earn air miles at a higher rate when you buy flights or other items from the airline. You can also earn air miles in other ways, including, of course, flying with the airline. Some cards may allow you to earn miles with other eligible purchases as well.

Once you’ve earned enough air miles you can redeem them for flights with the airline or within the airline’s “alliance” partners. Today, many airlines apply what’s known as dynamic reward pricing, in which the number of air miles you need for a flight depends on the dollar price that you would have to pay for that ticket. You might need anything from a few thousand air miles for a quick domestic hop to well over 100,000 miles for some international flights. Of course, you’ll typically need more miles for flying in business class or first-class as well.

When choosing your airline miles credit card, it’s vital to think about where you want to go because you can generally only use your air miles for flights with one airline or its partners. Consider which airlines service the airport nearest to your home, and which routes they fly. One airline may whisk you to your domestic or international destinations much faster and more conveniently than a competitor.

One of the key benefits of many airline miles credit cards is that you can check one bag free, helping you avoid baggage fees. Baggage fees vary considerably, but when checking a bag on a domestic flight, it’s normal to expect to pay $30, $35, or even more for your first bag, assuming it’s not overweight or oversize.² If you often check bags, this perk alone can offset the credit card’s annual fee. If you’re traveling as a family of four, for example, booking the flight with your credit card could save you $240 in baggage fees on a single round trip (assuming one checked bag per person, each way: 4x2x$30). But free baggage benefits don’t always extend to all the members of your party, so check with your card issuer. And, of course, if you typically take short flights and bring only a carry-on bag, this credit card benefit may not save you much money.

Some airline miles credit cards offer welcome offers, where you can earn air miles. Typically, you will need to meet a spending threshold within a specific period. In some cases, that may be enough air miles for an international flight—helping you fulfill your dream of traveling to one of your dream destinations. However, welcome offers can vary widely, even for the same credit card—so keep an eye open for promotional offers.

Once you’ve decided which airline’s credit cards best suit your needs, it’s time to look at credit card tiers. Airlines may offer several tiers of credit cards with varying annual fees, bonuses, and rewards. When choosing between them, it’s important to consider how well the benefits and annual fees at each credit card tier match your travel and spending goals. Basic credit cards with no annual fee accumulate air miles but may not offer some of the other key benefits of higher-tier cards.

Airline miles cards in the lowest tier typically offer benefits such as:

• A free checked bag
• Priority boarding
• No foreign transaction fees
• Insurance for trip delays or cancellations
• Car rental insurance
• Discounts or fee credits on in-flight purchases

Airlines miles cards in higher tiers may offer additional benefits including:

• An annual companion ticket that lets you travel with a family member or friend, although taxes and fees are extra
• Credits towards fees for the Global Entry program, which streamlines entry into the U.S. from abroad, and the TSA PreCheck^® program, which includes priority security screening
• Complimentary or discounted access to selected airport lounges, including food and beverages

Note that different cards have different rewards structures. Card features, benefits, and offers can vary. Be sure to check the card you’re considering carefully to see what it offers and what the terms and conditions are.