A credit card, by itself, is a great financial tool that offers benefits like discounts and cashback while shopping and carrying out other transactions. For travelers, particularly those who frequently fly with American Airlines, certain credit cards can grant them free miles on purchases, which can be redeemed for future trips. With the right American Airlines credit card, travelers can even access benefits like free checked bags and savings on inflight food purchases.
Benefits of American Airlines credit cards
The key benefit of such cards is access to free miles. These miles are granted as a part of the American Airlines loyalty program called AAdvantage. That said, American Airlines AAdvantage rewards cards can also have other benefits.
Welcome bonus
Many AAdvantage credit cards offer welcome bonuses in the form of airline miles, which makes them even more beneficial for frequent fliers. Usually, the welcome bonuses on credit cards can be unlocked upon making transactions up to a certain amount within a fixed period. For instance, certain credit cards offer up to 75,000 American Airlines miles, provided one uses the card for a transaction worth a preset amount within the first four months of getting the card.
No fee on foreign transactions
Those who travel abroad often can benefit greatly from signing up for a card that does not charge any fees on foreign transactions. Usually, card companies can charge a small fee for transactions carried out in a different country. In fact, this fee is not only limited to those who travel to different countries but also to those who, within the country, make online purchases from overseas vendors. Fortunately, most AAdvantage credit cards offer free foreign transactions, reducing travel expenses for cardholders.
Travel insurance
The benefits of travel insurance cannot be overlooked. Such policies safeguard travelers against unfortunate incidents and losses such as trip cancellations, flight delays, interruptions (due to unavoidable circumstances and emergencies), baggage loss, etc. That said, with the right credit card, one can sometimes skip purchasing an additional travel insurance plan. Several AAdvantage credit cards offer travel insurance with decent coverage.
Rental car insurance
Frequent travelers tend to consider car rentals a great option for navigating new places with ease. That said, renting a car is also an option for those who need to get to different places in their own city. Regardless, when renting a car, whether in one’s hometown or travel destination, one needs to ensure that the vehicle stays in good condition. For any damages the car may incur while in the rental period, one would be liable to pay for repairs. This is where rental car insurance comes in. It offers coverage for such damages. Credit cards offering American Airlines miles also provide rental car insurance benefits to cardholders. The precise coverage and benefits may differ from one card to another, so one must thoroughly review the coverage while signing up for a card.
Lounge access
Yet another aspect that frequent fliers can benefit from is access to the airport lounge. Waiting for the flight at the lounge can be much more relaxing, which is why many credit cards offer free lounge access as a key perk. AAdvantage reward cards also provide this benefit.
Free checked bags
Since American Airlines charges fees for checked bags, frequent fliers may have to spend quite a lot of money on each trip. Plus, the fee amount only increases with the number of bags and passengers. This expense can also be avoided by choosing the right credit card that provides airline miles. A lot of these cards offer free checked bags, but they may have different terms regarding availing of this benefit. For instance, a few cards only offer the first checked bag for free, while some offer free checked bags for all domestic flights.
Popular options to consider
Citi/AAdvantage Business World Elite Mastercard
The main feature of this credit card is that it allows cardholders to earn twice the miles for eligible American Airlines purchases. Additionally, it offers 2x miles for purchases made at gas stations, cable and satellite providers, car rental merchants, and telecommunications merchants. This Citi credit card also offers 75,000 miles of American Airlines as a welcome bonus. These miles can be redeemed upon spending $5,000 using the card within the first five months of getting it.
Capital One Venture Rewards Credit Card
This credit card also comes with a welcome bonus of 75,000 American Airlines miles. This is a one-time bonus, which can be unlocked upon spending at least $4,000 within the first three months of getting the card. Along with that, the card offers twice the miles as a reward for every purchase. Plus, if the cardholder makes any travel purchases, such as hotel bookings and car rentals through Capital One Travel, they can earn 5x miles on the card.
Barclays AAdvantage Aviator Red World Elite Mastercard
Here, too, cardholders get twice the miles for every purchase they make when flying with American Airlines. Along with this, they can make the most of other benefits like preferred boarding and inflight discounts. As a welcome bonus, the Barclays card offers 60,000 AAdvantage miles, which can be unlocked after making the first purchase and paying the annual fee within the first 90 days.