The First Airline Credit Card

Category: Finance, Credit.

Airline credit cards have not been around for as long as you may think.

Nonetheless, airline credit cards have quickly gained in popularity and can be found partnered with every major airline. In fact, they are a fairly new option available to credit cardholders. The First Airline Credit Card. When it came out, the card allowed consumers to earn miles with every purchase made. The first airline credit card to be offered to consumers was the City AAdvantage MasterCard. These miles could then be redeemed for free air travel through a variety of airlines. Today, you can redeem your airline miles at over 25 different airlines.

This card remains one of the major players in the airline credit card industry. In addition, you can redeem miles for discounts at numerous hotels and car rental companies. Realizing what a great idea airline miles credit cards was, airlines started following suit and partnering with credit card companies to create their own airline credit card. Airlines Follow Suit. The United Airlines Plus card was next. Although the card did not offer the flexibility of receiving discounted tickets with numerous airlines, those who frequently traveled on United Airlines enthusiastically embraced this United Airlines credit card. This card was the first airline credit card to be specific to an airline.

Not to be outdone, Continental Airlines unveiled its airline credit card, the Continental Airlines World MasterCard, shortly after United Airlines. Today, the United Airlines Plus Signature Visa Credit Card offers 17, 500 bonus miles after the first purchase with the card, a certificate for a free one- way 1, 000 mile one- class upgrade, and a$ 25 certificate for discount travel. Both airlines still offer their own airline miles credit cards, but provide their own special incentives to set them apart from the competition. The Continental Airlines World MasterCard offers 15, 000 OnePass bonus miles after completing your first purchase. Airline Miles Credit Cards Today. In addition, you can earn double OnePass miles with purchases made at Continental Airlines and with partner merchants and a 5% discount on Continental Fares purchased at their website using the card.

Today, airline credit cards are in abundance. In addition, competition to gain and to retain flying customers is fierce. Every major airline has partnered with a credit card company in order to bring their own airline credit card to the consumer. Therefore, airline credit cards offer a number of incentives, and special deals, bonuses to entice customers into acquiring their credit card. It is not unheard of for an airline credit card to allow the consumer to choose from over 200 different airlines when redeeming earned miles. In addition, the number of" generic" airline miles credit cards is on the rise. Many of these airline credit cards also offer other discount options, car rental, such as hotel, and vacation package discounts that can be purchased with earned miles.

With the competition being so strong when it comes to airline customers and credit card customers, the future of airline credit cards looks bright for consumers. The Future of Airline Credit Cards. In all likelihood, the number of incentives and bonuses will continue to rise in order to draw in new cardholders. Traditionally, airline miles credit cards have had annual fees and high APRs when compared to credit cards without rewards programs. A trend that is currently starting to develop are special low APRs and annual fees. While this remains true, more and more airline credit cards are starting to offer competitive APRs and waiving annual fees in an attempt to attract more customers. One thing is for certain: airline miles credit cards will continue to be popular among consumers, particularly for those that can pay off their balance in full at the end of each month and take full advantage of the special rewards.