Attractive Airline Rewards Credit Cards Introduced

Photo (cc) by Armchair Aviator

This post comes from partner site LowCards.com

Issuers have dramatically enhanced credit card rewards throughout the first quarter of 2011, competing to sign up new cardholders with excellent credit scores. That strategy is a boost for the top tier of cardholders, and it looks like issuers will continue this during the second quarter.

On Wednesday, Chase unveiled a month-long incentive where new cardholders can earn 100,000 miles with the British Airways Visa Signature Card. New card members receive 50,000 bonus British Airways miles after their first purchase and another 50,000 bonus miles after spending $2,500 with the card in the first three months.

If used properly, these 100,000 miles can be used for four round-trip domestic flights within the continental United States on American Airlines, or two round-trips from certain cities in North America to London on British Airways. The card has two other attractive features: no foreign transaction fees and 1.25 miles on British Airways for every dollar spent on the card (2.5 miles for every dollar spent on British Airways). But the card does have a $95 annual fee, which is not waived during the first year like so many other reward cards.

The airline rewards category has seen some attractive offers in 2011 including:

  • Capital One just ended its heavily promoted “Match My Miles Challenge” on the Venture Card. When a credit card consumer opened a new account, the issuer matched up to 100,000 miles a consumer had in any airline credit card reward program once the new cardholder spent $1,000 in the first three months on the card. Capital One ended the program yesterday, quickly reaching the program’s limit of one billion miles.
  • Chase also has attractive offers on both the Continental Airlines One Pass Plus Card and the United Mileage Plus Card. Consumers receive $50 cash back and 25,000 bonus miles after the first purchase on either card. Cardholders can also earn 5,000 bonus miles for adding an authorized user to your account. Both cards waive the annual fee during the first year ($85 for Continental, $50 for United).
  • The Citi Gold/AAdvantage World MasterCard gives a new cardholder 30,000 miles on American Airlines after the consumer makes $750 in purchases during the first four months. The $50 annual fee is waived for the first year.

“There are some great airline offers on the market, but consumers need to be aware that many of these cards come with a higher interest rate,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook. “If you carry a balance on your credit card account, these cards can cost more in the long run, despite the attractive rewards.”

Competition among issuers is extremely high as credit card companies try to attract the consumers with the lowest risk: those with high credit scores.

According to Mintel Compermedia, credit card offers have more than doubled – from 551 million at the end of 2009 to 1.4 billion at the end of 2010. Consumers with good or excellent credit scores are receiving the majority of these solicitations, and rewards seem to be the bait being used to attract new customers. Eight in 10 offers are for reward cards promoting points, miles or cash rebates, up from six in 10 offers in 2008.

Issuers offer reward cards expecting an increase in spending. They also want consumers to use that card for all purchases instead of using cash, check, debit cards, or other credit cards. Issuers make money from the interchange fees as well as the finance charges that grow when cardholders carry debt.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
12 Ways to Maximize Your Social Security Checks
12 Ways to Maximize Your Social Security Checks

You may be eligible for more retirement income than you realize.

7 Things You Should Buy at Estate Sales
7 Things You Should Buy at Estate Sales

Here’s what an experienced estate sale shopper considers a great find.

5 Ways to Save at Dollar Tree
5 Ways to Save at Dollar Tree

Yes, it’s possible to pay less than a buck for items from a dollar store.

2 Costly Rewards Credit Card Mistakes — and How to Fix Them
2 Costly Rewards Credit Card Mistakes — and How to Fix Them

If you commit either of these credit card sins, you are likely losing money every time you use a card. Here’s how to easily right this wrong.

13 Affordable Products for a Better Night’s Rest
13 Affordable Products for a Better Night’s Rest

These Amazon products can help you finally catch 40 winks — or more.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

Am I Eligible for My Mother’s Social Security Benefit?
Am I Eligible for My Mother’s Social Security Benefit?

Can an adult daughter tap into her late mother’s benefit?

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

This Surprise Factor Can Raise Your Risk of Dementia
This Surprise Factor Can Raise Your Risk of Dementia

Nearly half of U.S. residents may face this threat.

Organize Your Home With These 10 Thrift Store Finds
Organize Your Home With These 10 Thrift Store Finds

Resolve to be clutter-free in 2021 with these secondhand purchases.

These Major Appliances Got the Worst Reviews in 2020
These Major Appliances Got the Worst Reviews in 2020

Consumer Reports says these home products got the worst ratings from experts.

This Gas Station Scam Is Victimizing More Drivers
This Gas Station Scam Is Victimizing More Drivers

For the second straight year, a growing number of Americans believe they’ve fallen prey to this scam.

11 Laws You Could Be Breaking Without Knowing It
11 Laws You Could Be Breaking Without Knowing It

Seriously? Fibbing about the weather is a crime? This and other little-known legal traps await the unwary.

These Are the 3 Best Used Cars You Can Buy
These Are the 3 Best Used Cars You Can Buy

These vehicles boast reliability, safety and long-lasting value.

13 Things Seniors Can Get for Free — or Almost Free
13 Things Seniors Can Get for Free — or Almost Free

There are many ways to get cheap or free services and goods after reaching a certain age.

6 Legal Documents Retirees Need — but Don’t Have
6 Legal Documents Retirees Need — but Don’t Have

Few retirees have all of these documents that are crucial to their golden years — especially during a pandemic.

Is This Treatable Condition Causing Your High Blood Pressure?
Is This Treatable Condition Causing Your High Blood Pressure?

Researchers say too many doctors are overlooking this potential source of hypertension.

11 Generic Products You Should Buy at Costco
11 Generic Products You Should Buy at Costco

Not all generics are worthwhile, but these are among the best from Costco’s Kirkland Signature brand.

Internet Providers Can’t Charge You for This Anymore
Internet Providers Can’t Charge You for This Anymore

Starting this month, your ISP no longer can bill you for this fee.

3 Cable TV Companies Hiking Prices for 2021
3 Cable TV Companies Hiking Prices for 2021

Still married to your cable company? Hold on to your wallet!

8 Tips for Retiring Comfortably on Social Security Alone
8 Tips for Retiring Comfortably on Social Security Alone

It’s never too early to start learning how to live well while living on less.

15 Painless Ways You Can Cut Costs in 2021
15 Painless Ways You Can Cut Costs in 2021

Follow these tips to save, so you’ll have money for things that really matter.

9 Small Expenses That Are Bleeding Your Budget Dry
9 Small Expenses That Are Bleeding Your Budget Dry

Keep more of future paychecks by eliminating these budget-busting unnecessary expenses.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.