Airline credit card or travel credit card: Which to choose?

Choosing between an airline credit card and a travel credit card? Your decision could depend on how you plan to use the card. 

Airline rewards credit cards typically offer the most value when you make purchases from the affiliated airline. Travel rewards credit cards allow you to earn—and redeem—points or miles on a wider array of purchases. You can also combine both cards to maximize your rewards.

What you’ll learn:

• Airline rewards credit cards are credit cards that let you earn miles and rewards with your preferred airline. 

• Airline rewards can often only be redeemed with a specific airline or its travel partners.

• A general travel rewards credit card offers many of the same benefits as an airline rewards card but with fewer restrictions on how you can use your miles and rewards.

• Travel rewards cards may be a good choice for travelers who want the flexibility to fly with the airline of their choice and the ability to earn rewards on all their purchases.

Both types of credit cards operate similarly, but there are some important distinctions.

An airline rewards or airline miles card lets you earn rewards or miles on a specific airline. Rewards from an airline credit card might allow you to buy plane tickets, check bags at no cost or board a plane early. 

Earning elite status with an airline could make travel even more enjoyable with perks like complimentary seat upgrades and access to airport lounges for more relaxing layovers. Reaching elite status may vary by airline. However, ways to earn it typically include using the card for purchases, amassing a set amount of rewards or spending a set amount of money with the airline.

A general travel rewards credit card can provide straightforward rewards and flexible redemption options. This type of card isn’t tied to a specific travel provider and may let you earn rewards on purchases even when they’re not related to travel. 

You may have greater flexibility for redeeming your rewards with a general travel rewards card. That could mean redeeming them for rental cars and vacation homes.

Some of the biggest differences between airline credit cards and general travel cards are the types of rewards offered and how the rewards are structured. If you’re considering these cards, it may be helpful to look at how you can earn and use the rewards—and any other benefits.

First, figure out what travel rewards matter to you. Then consider whether potential rewards cards also come with added benefits.

For example, some travel cards provide a statement credit for TSA PreCheck® or Global Entry. These programs can help you move through the airport more quickly and may make travel much easier. Some airline cards and travel credit cards may also offer airport lounge access.

Another important thing to consider when comparing travel credit cards is how you travel. If you usually fly with the same airline, an airline-specific credit card could earn you miles to use with it. 

On the other hand, a general travel rewards card may give you the flexibility to earn rewards from a variety of airlines, not to mention other travel-related purchases such as car rentals, hotel stays and train tickets. Because general travel rewards cards often offer the flexibility of more choices, you may also be able to transfer your miles to certain airlines and hotels.

If you travel frequently and use your credit card for everyday items—like restaurant meals, gas, groceries and the occasional latte—a general travel rewards card may earn you more miles. An airline-specific card, on the other hand, may limit your rewards to that airline and its partners—potentially leaving you with fewer miles if you frequently shop or dine outside those categories.

If you’re considering an airline rewards credit card, here are some situations where it may make sense:

• You’re loyal to an airline. Purchasing flights from the same airline lets you earn points and miles consistently. 

• The airline rewards appeal to you. Card perks can include things like access to airport lounges, elite status and priority boarding. Perks like that can make an airline credit card worthwhile.

• You frequently check bags. It may be possible to check your bags for free with certain airline credit cards.

Here are some scenarios where a travel rewards card might be a good choice:

• You choose flights based on price. If you bargain shop for flights and don’t consistently fly with one airline, a travel rewards card might be a better option.

• The travel rewards align with your spending habits. Some travel rewards cards offer bonus points for purchases made in certain categories—like hotels or restaurants. If you frequently make these types of purchases, the right travel rewards card could lead to extra rewards.

• You want to transfer rewards. If you have a travel rewards card and another credit card with the same issuer, you may be able to combine rewards to redeem higher values. This usually isn’t possible with airline credit cards.

• You already have an airline credit card. The flexibility of a travel rewards card could pair well with an airline credit card, allowing you to have the best of both worlds.

If you’re comparing airline rewards credit cards and general travel rewards credit cards, consider which option works for you and your spending and traveling habits. Both types of travel rewards credit cards have distinct advantages, so you should pick the program that matches your travel style and spending needs.

Ready to take the next step? If you’re looking for a travel rewards card to earn rewards on every purchase, whether booking a flight or buying groceries, compare Capital One travel rewards cards today.