Skip the Annual Fees but Keep Earning Miles With One of These Airline Credit Cards

Most airline credit cards offer valuable benefits such as free checked bags, priority boarding, discounts on flight awards or a head start toward achieving elite status. But some charge an annual fee in exchange. While you'll find the best benefits with airline credit cards that charge an annual fee, there are a few co-branded airline and general travel cards without annual fees that can still help you cut back on travel costs. 

What is a no-annual-fee airline credit card?

An airline credit card with no annual fee is typically a co-branded credit card offered through an airline or credit card issuer, without charging a yearly fee. No-annual-fee airline cards tend to offer fewer benefits as a result. There are also general travel credit cards that aren't tied to a specific airline brand but provide rewards for purchasing airfare.

Airline credit cards thatcharge annual fees tend to offer higher earning rates for spending and more perks like annual travel credits and airport lounge access. If you can take advantage of these benefits or travel frequently, an airline card with an annual fee might better fit your spending habits.

Pros and cons of an airline credit card without an annual fee

Before you pick up an airline credit card with no annual fee, you should compare it to its annual fee counterpart to determine if saving on the yearly price tag is worth fewer rewards and perks. Here are some benefits and drawbacks to weigh: 

Pros:

• Avoid paying a yearly fee
• No pressure to use your card to offset an annual fee
  
• Earn miles with your preferred airline

Cons:

• Fewer perks and rewards than airline cards with an annual fee
  
• Lower welcome offers  

How to choose an airline credit card

Choosing between airline credit cards comes down to more than just their annual fees. Consider the following as you choose a credit card that earns airline miles.

Rewards

Make sure the airline card you select makes sense for your home airport and where you typically fly. This is important regardless of where you live but may be crucial if you live in an airline's hub city and have scarce options from other airlines and alliances. 

For example, people who live in Delta hub cities like Atlanta and Minneapolis may have an overwhelming number of flight choices with Delta and SkyTeam partners and fewer options from other airlines to choose from.

Redemption options

You should also know how a card's rewards program works and how easily you'll be able to use your miles. You can do this by playing around with various airline's websites and searching for flights you may want to book in the future. This can help you get an overview of typical availability and how many miles you'll need for specific destinations.

If you're planning to transfer points or miles to airline partners, check to see which airlines are partnered with the card you're looking into. Reward transfers could increase the value of your rewards.

Perks

Airline cards with no annual fees have very few perks compared with their more expensive counterparts. If an annual fee fits into your travel budget, you can get an airline credit card with benefits like free checked bags, elite status points, early boarding on the plane, travel credits and airport lounge access.

How to maximize your airline credit card

Once you find the right airline credit card, consider these tips:

• Be flexible with travel dates. Many frequent flyer programs limit award availability throughout the year, particularly over peak travel dates like holidays. To get more value for your miles, consider several sets of travel dates and even destinations for each trip.
• Look for additional ways to rack up miles. Airline mile shopping portals and dining clubs may help you earn additional miles when you make eligible purchases. Just avoid overspending for the sake of earning more rewards.
• Never carry a balance. Airline credit cards tend to have high APRs, and paying interest can typically wipe out the value of the miles you earn. You should charge only purchases you can afford to pay off quickly.
• Take advantage of frequent flyer perks. Make sure you use any card perks, such as free checked bags and early boarding, to get the full benefit of your card. You can do this by adding your frequent flyer account number to your flight reservation each time you travel.

Alternatives to airline credit cards with no annual fee

If an annual fee of $95 to $550 fits into your travel budget, consider an airline card with an annual fee. Those at the lower end of the scale can still come with lucrative benefits like free checked bags and discounts on award flights. Some credit cards might waive their annual fees for the first 12 months.

You can also look at general travel credit cards that earn American Express Membership Rewards points, Capital One Miles, Chase Ultimate Rewards points or points in the Citi ThankYou program. Cards in all of these programs let you book airfare through a travel portal, and some let you transfer rewards to an array of airline and hotel partners.

If you don't travel often enough to warrant an annual fee, a general cash-back card might work better for you.

How to apply for a credit card

Follow these steps to apply for an airline credit card:

1. Find out if you have a frequent flyer account: If you belong to a frequent flyer program already, you'll have a frequent flyer number you can list on your credit card application. If not, you'll be assigned a frequent flyer number when you apply for your card and get approved.
2. Apply for a card: Airline card applications ask for information like your full name, address, phone number, frequent flyer number, monthly housing payment, household income and Social Security number. Go to the card issuer or airline's website to fill out the application.
3. Get your card: Earn the welcome offer if you can through your normal spending and remember to pay your card bill in full and on time each month.

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