Are Airline Credit Cards Worth It? United Airline Miles vs. American Airlines Miles

Updated: February 13th, 2024 

Are Airlines Credit Cards Worth it?

Besides my first flight to Australia (before I knew what I was doing), I've never paid over $650 for a roundtrip flight. A lot of it is because I've strategically used airline credit cards to earn and use miles to fly around the world. 

When I was 18, my parents took me to a travel agent to help book my first international flight to Australia. Sitting across from her desk, she recommended I sign up for the American Airlines frequent flyer program. She detailed that a round-trip flight to Australia would accumulate a decent number of air miles. 

"What are air miles?" I asked. 

 

It was then I learned that every airline had a frequent flyer program that rewarded travelers with 'air miles' when they flew with their specific airline. If you accumulated enough miles, you could purchase flights, hotels, tours, etc., with them.

Flyer miles are nothing new, and you probably already know what they are if you're reading this article. Today, nearly every major credit card and airline company offers incentives and rewards to entice customers to use their cards. 

When I was on that flight to Australia, they advertised the AAdvantage credit card over the loudspeaker and mentioned that for signing up, you could receive up to 50,000 bonus miles to your account. None of it made any sense to me. I still had no idea what these miles were and figured that they were only for people who traveled a lot. The travel agent signing me up for the airline was a nice touch, but I'd be 50 by the time I had enough miles to cash them in for anything. 

Little did I know that was the beginning of a long relationship with travel reward programs that would eventually take me worldwide. 

In this guide, I will be answering these questions: 

How are airline miles accumulated?

I don't travel a lot. Can I still earn rewards?

Do I need the airline credit card to get all the benefits?

How do I sign up for an airline credit card?

After the bonus miles, how do I continue to grow my airline credit card miles?

How much does an airline credit card cost?

Are flights really free with airline credit cards?

When is using airline credit card miles worth it?

Should I always fly with the airline I have miles with?

Which airline credit card is best?

How are airline miles accumulated?

Airline miles are accumulated through four main avenues: 

1. Flying with the airline. Each mile flown equals one mile on your account. 
2. Using the airline credit card for purchases. One dollar spent also equals one mile on your account. 
3. Partner bonuses. Airlines often partner with other brands to reward bonus miles. For example, many airlines partner with rental car agencies and provide incentives for members to use their partners in order to earn double, sometimes triple, miles on purchases. 
4. Airline bonuses. The airline will also offer other incentives throughout the year, such as spent bonuses, referral bonuses, and sign up bonuses.  

I don't travel a lot. Can I still earn rewards with airline credit cards?

YES. Absolutely. Welcome to "travel hacking."

The year I booked that flight to Australia my mother was in and out of jail struggling with addiction, and my dad was a school bus driver & nighttime custodian. We didn't have a lot of money. I got the opportunity to travel to Australia because a foreign exchange student became one of my best friends and I was invited to stay at her house for the holidays. My dad scrounged everything he could to afford the plane ticket, and off I went. 

I couldn't afford to travel throughout my early 20s. The miles & credit card program is one of the only ways I could. Hawaii. Europe. Mexico. New Zealand. All because of strategically researching flights and using my airline miles. 

Me on my first trip abroad in 2011.

Do I need the airline credit card to get all the benefits?

Also, yes. 

Credit cards can be scary, especially reward credit cards because they typically have extremely high interest rates. If you aren't in a place where you feel like you can handle a credit card and pay it off in full every month, it might not be time to hop into the world of travel credit cards quite yet. It's not uncommon for credit card interest rates to be 15%, 20%, or higher. This means, if you miss a payment, the repercussions can end up costing a lot of money. 

When I returned from that trip to Australia, I started researching airline credit cards. Eventually, I came upon a blog post by Nomadic Matt that described how to use travel rewards cards and get the most benefits without spending a ton of money. I didn't think it sounded that hard. Naive and probably a bit stupid, I decided to sign up for the American Airlines credit card soon after.

One of the biggest reasons airline credit cards are worth it is because of the bonus miles. Nearly every major airline offers incentives and 'bonus miles for signing up. Most of them range anywhere from 40,000 to 60,000 bonus miles.

On American Airlines, a one-way flight is typically 12,500 miles. Sometimes you can find one for only 7,500. 40,000 bonus miles can easily mean almost two full round-trip flights within the U.S. or one round-trip flight to Europe, which starts at 20,000 miles each way. 

The catch with any airline credit card is that the bonus is only awarded after $3,000 is spent on the card within three months.

Oof. Did that just crush your soul a little bit? Hear me out. 

$3,000 in three months can sound like a lot of money, especially if you are a young traveler just getting their feet on the ground. But there are ways to easily meet the spending limit without immediately going into debt or stressing your finances. Here's how: 

1. Wait until you need to make a purchase. A few summers ago, when I switched from the American Airlines credit card to the United Airlines credit card, I didn't apply for the credit card until I was about to purchase new camera equipment. I got the card, and the next day I ordered my new camera, which was $3,500, meeting the spending limit in a single purchase. I already had the money in savings and transferred it to checking to pay the bill off in full as soon as possible. 
2. If you aren't making any big purchases, calculate your expenses and put everything on your credit card. For example, let's say your monthly expenses include $850 in rent, $60 in internet, $100 in utilities, and $250 in groceries. That's a pretty average spend for many people, and totaling that all up comes to $1,260 monthly. Pay that three months in a row, and you've got yourself 50,000-70,000 bonus miles. 
3. Look at significant yearly expenses. When you renew your car insurance, it often gives you options to pay monthly, yearly, or every six months. Same options are sometimes available for health insurance, etc. Save up to pay it annually (which often is cheaper overall) and put it on the credit card.

How do I sign up for an airline credit card?

If you are ready to get an airline credit card and start traveling with miles, it's pretty easy to do. You can sign up for whichever airline credit card you wish through the airline's website. Like any other credit card - they will have to pull your credit report before you are approved. 

If you would like to sign up for a United Airlines credit card, you can use my friends and family link that gives me 10,000 bonus miles for every friend I refer, another bonus incentive! Here is the link: 

United Chase Credit Card Application

How much does an airline credit card cost?

It depends on what credit you get. For example, I have the United Explorer Mileage Plus Credit Card and the United Club Card. As part of the signup bonus, the first year is free for the United Explorer Card. Each year after comes with an annual $90 fee.

The $90 fee pays for itself almost immediately. When you aren’t a United Airlines credit card member, there is a $30 fee for checked bags and carry-ons if you book economy fare, which is the lowest-priced ticket. That is $60 round-trip. With the credit card, checked bags are free for you and whoever you are traveling with, as well as free carry-ons.

The United Explorer card also comes with two free passes to the United Club annually, which is a lifesaver anytime I have extended layovers.

$90 is a pretty standard annual cost for basic airline credit cards. 

The United Club Card is a little bit of a different story. I had the Explorer card for years before upgrading to the United Club Card in 2022. It eventually got to the point where I was traveling so much for work that a club card made sense as a business expense. The fee is $495/year, which is quite expensive. My budget-traveler self would've died at this 10 years ago, but I am so thankful and privileged to be at the point now where it makes sense. If you would've told that little girl on her first flight to Australia that should would be one of those "fancy loungers" in the future - she wouldn't have believed you! 

But I am still a budget traveler at heart and believe it or not, the United Club Card saves me money. United Clubs have free food, snacks, coffee, lattes, and even alcoholic beverages. They also have their own help staff. This has saved me THOUSANDS in a few ways - 

1. I  haven't paid for a meal at an airport in over a year. On travel days, I spend $0. I think we all know how expensive airport meals can be, and traveling this much, especially on long layovers, the card pays for itself in no time. 
2. United Club's service is priceless. Missing flight connections, delays, etc. are just part of air travel. You know when you miss your flight and then you go to the customer service counter and the line is a hundred people long? Yeah, I've spent WAY too much of my life in those lines. The United Club has its own staff of people on hand ready to help in those exact situations. I live in Wyoming and Denver is my main connection hub. I've seen lines stretch down the entire terminal on bad travel days. I walk by and sometimes feel so guilty knowing that I will have help in minutes, while they're likely stuck there for hours. Some travelers miss other flight options while waiting, while the United Club has saved me so much time and money by having instant access to someone who can help. 

So sure, the price for the United Club Card is expensive. But each year it probably saves me about $700 in food, flight changes, and drinks. 

After the bonus miles, how do I continue to grow my airline credit card miles?

I put everything on my United Airlines credit card. Everything.

Your daily and monthly expenses add up, and all major airline credit cards give you one mile for every dollar spent, sometimes more. Even as a college student without a lot of money, my daily purchases and bills continued to add up.

If your monthly expenses are $1,300, that's 1,300 miles just for doing everything you'd already be doing. 1,300 x 12 months = 15,600 miles per year. 

Something that helps boost my status and miles with airline credit cards is always putting major purchases on the card. When I was in my mid-20s, I had saved up to buy a car. I went to the used car dealership and told them I wanted to pay it all at once and charge it to my credit card. The car was $7,500, and I got 7,500 miles for a single purchase. The cash for the car was already in my checking account, and I paid off the card in full three days later when the pending traction was finalized.

I will say again that a lot of responsibility comes with an airline credit card. If you don't pay your call in full every month, the card will end up hurting more than helping you.

Are flights really free with airline credit cards?

Almost. 

For domestic flights, there is usually a $5 fee for every booking that is not covered by airline credit card miles. For international flights, the fees are slightly higher, around $20-$30 each way.

Still, a $60 round-trip flight to Asia is way better than a $1,500 flight. 

In 2018, I flew from North Carolina - Melbourne - Queenstown - North Carolina on my second trip to Australia for $580. I booked a one-way flight to Australia with miles and then another one-way flight to New Zealand with miles. I found a one-way flight from Queenstown to the Carolinas for $560.

Last year I booked a flight from Wyoming - Florida - Costa Rica - Wyoming for $220, also using airline credit card miles for part of the journey and booking one-way flights where it was cheaper.

When is using airline credit card miles worth it?

This is a great question and one I'll do my best to answer. 

Whenever I plan a trip, I compare the ticket price and what the cost would be with miles. For example, a recent trip to Italy had airline fares of $550. With miles, it was a 40,000 round trip flight. In this case, booking the $550 ticket made way more sense. 

For Christmas, I am flying home to Michigan. When I initially searched to book with miles, it was 45,000 miles for a round trip flight, significantly higher than typical round-trip flights. However, the base ticket price was also high - $460. I researched dates and found that I could book a one-way ticket with 12,500 miles and another one-way flight back for $200. That made the most sense, so I have two one-way flights paid with miles and dollars instead of booking a round-trip. 

Should I always fly with the airline I have miles with?

If possible, yes. Although I book many trips with my airline credit card miles, I still book a majority with dollars. I enjoy researching and finding cheap plane tickets as part of my travel-hacking hobby. A lot of my miles are accumulated by flying with the airline throughout the year.

All major airline credit cards give miles based on every mile you fly with them. For example, a United flight from Los Angeles to New York is 3,000 miles. Once you complete the trip, your account will be credited 3,000 miles.

However, if a Delta ticket is $30 cheaper and you book that instead, you will receive no miles and qualifying miles for that trip. 

Which airline credit card is best?

I have been a member of both the American Airlines credit card program and the United Airlines credit card program. United Airlines wins hands-down. 

However, which airline credit card you get should depend on where you live. 

I was with American Airlines for the first ten years because of the travel agent. It was the right decision at the time, given my closest home airport in Michigan was an American Airlines hub. When we moved to Wyoming, the tiny Yellowstone airport operates 100% with United Airlines, which is why I switched. 

Before deciding which airline credit card is right for you, research your home airport and see if it is a major 'hub' for any airlines. If you find out that your local airport operates most of its flights through American, that might be the best choice. 

But solely based on quality, customer service, and opportunity for upgrades and growth, United Airlines is much better than American Airlines. 

I've also heard Delta has a great program, although I cannot provide insight into their card incentives. 

Apply for United credit card and get airline miles here.