7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update)
7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Capital One VentureOne For Beginners No Annual Fee Plus 0% APR Until June 2025
The Capital One VentureOne card is aimed at those starting out with travel rewards, featuring no yearly cost to carry. It has a promotional 0% APR on new purchases and balance transfers that lasts until June 2025 which should be a welcome relief. Every dollar spent nets you 1.25 miles, and using Capital One Travel for hotels and car rentals bumps this up to 5 miles per dollar. This might suit those who don’t travel very often, but want to start accumulating some travel credit. It can help those working on their credit score while offering flexibility with travel miles that don't vanish over time plus no fees for purchases made outside of the USA. Don't forget the 3% charge for balance transfers, if you do decide to move balances during the intro period.
The Capital One VentureOne card presents itself as a viable entry-level option, particularly for those venturing into the world of travel rewards credit cards without wanting to commit to an annual fee. While the core offering of 1.25 miles per dollar on all purchases might seem unremarkable at first glance, it does provide a small edge over other cards in the same no-annual-fee category, especially if you intend to use this for everyday spending. What might be appealing is the 0% introductory APR period extending all the way until June 2025. Such a grace period could be beneficial for a bigger planned purchase, allowing some time to settle the balance. A word of caution: a 3% balance transfer fee during this period does apply.
What's potentially more useful though, is that Capital One waives foreign transaction fees on this card, which is convenient when traveling internationally. It removes that common 3% cost imposed by many other issuers, a notable benefit if your travels frequently take you abroad. Further, this card gives access to more than 15 transfer airline loyalty programs and these points can be directly used or transferred, providing flexibility for different travel preferences. Also, it’s great that those earned miles are not time limited. For each mile earned, there is a valuation of one cent per mile which is fairly understandable, and miles can be redeemed via the Capital One Travel Portal. An often overlooked benefit is its inclusion of purchase protection. This protects new purchases from accidental damage and theft within the first 90 days – something one does not readily expect on a basic level card. This card also boasts a decent sign-up bonus. It may very well make that very first flight much cheaper with the additional points. All of this, combined with a seamless reward process via their portal, does provide a compelling choice if you are interested in airline travel but are not yet ready for cards that carry high annual fees.
What else is in this post?
- 7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Capital One VentureOne For Beginners No Annual Fee Plus 0% APR Until June 2025
- 7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Bank of America Travel Rewards For Students Triple Points on Travel Bookings
- 7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Chase Freedom Student Card 1% Back Plus $50 Annual Travel Credit
- 7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Discover it Secured Card 2% Back at Gas Stations and Restaurants
- 7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Delta SkyMiles Secured Card 1 Mile Per Dollar Plus Free Checked Bag
- 7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - JetBlue Card Zero Annual Fee Plus 3x Points on JetBlue Purchases
- 7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - American Airlines Secured Card Priority Boarding Plus Free Bag
7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Bank of America Travel Rewards For Students Triple Points on Travel Bookings
The Bank of America Travel Rewards card for students provides a decent welcome offer: 25,000 points after spending $1,000 within three months, which equals a $250 statement credit for travel. It's worth noting that this card offers 1.5 points per dollar spent on everything, and no extra fees for foreign transactions, which is helpful for students exploring new places. That said, to get this card, your credit score must meet their fairly strict requirements, which might be a barrier for some people. While you could get charged a high APR between 18.24% and 28.24%, the card does come with useful tools to help build your credit, such as free access to your FICO score. This card may be suitable for students looking for rewards while keeping an eye on their spending and improving their credit score.
Another student focused card, the Bank of America Travel Rewards card, also offers a straightforward earning structure. It stands out by providing a base rate of 1.5 points per dollar on all purchases, and those points do not expire as long as the account remains open, something beneficial to keep in mind. There is a potential welcome bonus of 25,000 points when you spend a certain amount within the first three months, which, if redeemed correctly, translates to a $250 credit towards travel purchases, certainly quite generous.
One point of interest is the zero foreign transaction fee. This is convenient when traveling outside the USA, and avoids the common additional charges of approximately 3% that other card providers often tack on. Also there are no annual fees to worry about and no points expiry so it is a fairly uncomplicated affair. If you do use this card wisely then it is definitely a step up from other basic cards.
However, there is always a trade-off. Students especially need to pay attention to the regular APR rates, as these are variable, and can be anywhere between 18.24% and 28.24%. If there is a balance, paying it back quickly will be crucial to avoid high interest payments. While the bank also includes access to a FICO score, which is interesting for those looking at understanding their own credit worthiness, it needs to be said that managing spending effectively must be a top priority. The 15-billing cycle promotional period with no interest on new purchases and balances might look tempting, but keep in mind that things return to normal after that and any debt after this period can cause some financial headaches, if you are not careful.
7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Chase Freedom Student Card 1% Back Plus $50 Annual Travel Credit
The Chase Freedom Student Card is a beginner-friendly option for students wanting to build credit without being overwhelmed by complex rewards structures. It offers a simple 1% cash back on all spending, plus a $50 annual travel credit – a small boost for those planning trips. There's also a potential $20 bonus yearly, for up to five years, given the account remains in good standing. The absence of an annual fee is certainly welcome, keeping it accessible for new credit users. However, while straightforward, this card might not offer the best value in terms of travel or dining spending that might better suit other people's needs. It's a good place to start, but not necessarily the best fit for everyone.
The Chase Freedom Student Card features a 1% cash back on all purchases, although this rate has the potential to double to 2% for up to $1,500 spent on combined purchases in quarterly rotating categories. This quirk offers some advantages to those who plan spending ahead, and they can benefit from some extra reward accumulation. A rather particular selling point of the Chase Freedom Student Card is its $50 annual travel credit. This is something that students might find useful if they like to travel, attend events, or even need to get back home more frequently.
Additionally, new cardholders can expect a sign-up bonus, a direct path to start building their mile balance or to help fund the first short trip to Europe. The card provides entry into the Ultimate Rewards program, giving the possibility of cash back, but also the option to transfer points to various airline partners. This does offer the flexibility to adapt rewards to individual travel preferences.
The card's focus is also squarely on establishing credit history, as having and managing a credit account does help with improving your credit score. This is especially beneficial for future big-ticket items, such as buying a car or a house after graduation. Unlike some other cards that charge foreign transaction fees, this one doesn't, meaning there are no extra charges when traveling overseas, allowing travelers to enjoy their experiences.
There is also purchase protection, a useful but often forgotten detail, safeguarding against theft and accidental damage for the first 120 days. The accumulated 1% cash back has also some flexibility, since it is easily redeemed on travel expenses, not just airfare, but also hotels and other travel-related spends. Students can also boost rewards through Chase's referral program which does not require any spending adjustments.
Although this card is geared towards students, credit limits are determined by income, which might aid young adults in cultivating financially savvy behavior, something very essential for any person's long term success.
7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Discover it Secured Card 2% Back at Gas Stations and Restaurants
The Discover it Secured Credit Card offers a rather interesting proposition, granting 2% cash back at gas stations and restaurants, up to a total of $1,000 in combined spending each quarter. This makes it quite an attractive choice for anyone wanting to accumulate travel credit from routine expenses, while working on their credit profile. All other purchases get you 1% back, ensuring no spending goes unrewarded. Furthermore, Discover has a first year reward matching program, which is always a plus for new cardholders who are not yet familiar with the intricacies of credit card rewards and benefits. After a certain time, usually when consistent on-time payments have been demonstrated, it might be possible to transition to an unsecured card, a feature that should not be dismissed easily, because your security deposit is returned once that happens. In summary, this card does provide a compelling path for those looking to simultaneously rebuild credit and generate some extra cash rewards in the process.
The Discover it Secured Card presents a structured way for folks who want to improve their credit scores while also earning cash back, and without annual fees that other cards frequently impose. It offers 2% cash back on up to $1000 of combined purchases made at gas stations and restaurants each quarter. For all other transactions there is 1% cash back. Those who prefer to pay without any physical contact can utilize the contactless payment technology at supporting terminals, a welcome sign of integration with the current environment.
Unlike many secured cards that provide no incentives at all, new cardholders also have all the cash back earned during the first year matched by Discover, essentially doubling the return of any earned cash back, giving it an interesting twist to consider. This, of course, has to be qualified by the caveat that most spending should fall into their chosen categories to really reap these benefits.
The card's reporting to all the major credit bureaus is designed for those wanting to build their credit profiles. This reporting should assist in demonstrating an ability to handle a credit line properly and responsibly and over time lead to improvements in a credit score. If these reports show a positive record, and after a certain timeframe, users may also be considered to transition their account to an unsecured card - refunding their original security deposit.
There are some benefits aimed to ensure security, such as zero fraud liability, a reassuring feature especially for travelers when unexpected problems arise, alongside educational tools for managing personal finances. Furthermore, unlike many other credit card providers, the card has no extra fees for transactions made outside of the USA, eliminating a possible unexpected expense for anyone planning a trip overseas. Savvy card users might take advantage of quarterly bonus categories. The card's rewards can also be boosted from its introduction and the ease of contactless payment technology adds a much needed layer of convenience, but it's worth remembering that this payment option may not be widely accepted in many areas.
7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - Delta SkyMiles Secured Card 1 Mile Per Dollar Plus Free Checked Bag
The Delta SkyMiles Secured Card lets you earn 1 mile for every dollar you spend, a feature aimed at those building their credit and accumulating travel miles at the same time. A notable benefit is the free first checked bag on Delta flights, also extended to up to eight travel companions on the same booking, potentially saving a lot of money if you fly as a group. Delta's membership of the SkyTeam Alliance allows you to redeem those SkyMiles on more than 15 different partner airlines, which opens up a wider range of destinations. It is worth remembering that this particular secured card is mainly for those working on their credit history, so while it is a good option, there are also other Delta credit cards with different benefits for frequent flyers and big spenders. This card would appear to be for consumers aiming to get travel related benefits while working on their credit rating.
The Delta SkyMiles Secured Card is interesting, as it allows you to build credit while earning airline miles – a unique angle for those wanting to improve their financial standing while racking up potential travel rewards. This approach links everyday spending to flight credits. A seemingly appealing feature is the inclusion of a free first checked bag on Delta flights for the cardholder, and up to eight companions under the same booking. Given that first checked bags can cost $35 each way, this benefit quickly adds up, especially for families or those who don’t pack light, making the card potentially worth considering.
However, beyond the secured card option, Delta provides an ecosystem of cards catering to different types of travel habits. For example, the Delta SkyMiles Gold American Express Card boasts priority boarding and statement credits for eligible in-flight purchases, which might enhance the overall flying experience. The Reserve card features access to lounges, and a complimentary companion certificate each year, which may be appealing to very frequent travelers. All these different cards are designed for better or more frequent travelers and have a different appeal than a secured credit card focused on getting the basics right while making your score better. In some sense it is hard to compare apples and oranges and not many cards do focus on a credit score as the prime objective.
7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - JetBlue Card Zero Annual Fee Plus 3x Points on JetBlue Purchases
The JetBlue Card is an appealing choice for those seeking airline rewards without an annual fee. It earns 3x points on JetBlue purchases, making it good for frequent flyers. You'll also get 2x points on dining and grocery store buys, providing extra ways to build up your travel funds. New cardholders are eligible for a 10,000 point welcome bonus once they spend $1,000 in the first 90 days. Importantly, this card doesn't hit you with foreign transaction fees, which is handy when traveling abroad. While it might not have the extras of the JetBlue Plus Card, it's certainly a decent pick if you prefer low costs but still like to earn rewards as you go along.
The JetBlue Card, with no annual fee, features a basic rewards structure. It gives 3x points on JetBlue purchases, a step up from the standard 1x many cards offer on regular expenses. Cardholders also earn 2x points for dining out and grocery shopping, and the ubiquitous 1x for all other spending. There's a sign-up bonus that you'll get 10,000 points after spending a $1,000 during the first 90 days of card ownership.
The JetBlue Plus card, costing $99 yearly, offers significantly greater rewards. It offers 6 points per dollar on JetBlue purchases, a sign-up bonus of 50,000 points upon meeting the same spending threshold, and some extra features like free checked bags. It's interesting to note that the regular JetBlue card is more of an entry level product for users wanting to avoid annual fees, but it falls short on both benefits and point earning speeds for regular travelers who might actually find the annual fee version more rewarding.
In short, there are distinct differences between the two cards, and they seem to be aimed at different types of people. The JetBlue card is a decent enough choice if your main priority is saving money on annual fees, especially while you are not yet a frequent flyer. The plus version however is clearly better for any sort of frequent traveler, who can potentially make use of the free checked bags, and who values access to extra perks.
7 Best Credit Cards to Earn Airline Miles While Building Your Credit Score (2024 Update) - American Airlines Secured Card Priority Boarding Plus Free Bag
The American Airlines Secured Card stands out for its practical travel perks, designed to benefit both occasional travelers and those looking to improve their credit score. Noteworthy features include priority boarding and the opportunity for a free checked bag, which extends to up to four companions traveling with the cardholder. These features can notably enhance the flying experience, particularly for families or larger groups. While it serves as a solid entry point for building credit, potential users should weigh these benefits against the fact that this card may not be the most rewarding option for every budget-conscious traveler. For those who fly American Airlines frequently, the perks of the secured card could outweigh any drawbacks, providing both financial flexibility and travel rewards.
American Airlines secured credit cards present certain advantages, especially for the frequent flyer who also wants to build up a credit history. Many of these cards include some form of free checked baggage and some form of priority boarding, perks that can significantly improve the overall flying experience. Avoiding the additional fees associated with checked bags alone could provide decent value, especially when flying frequently.
In 2024, the options have evolved with additional variations and options aimed at consumers wanting to build their credit profile while also having access to a set of perks, such as access to airport lounges, insurance for travel, and access to upgrades. Such perks can give the frequent flyer some comfort and advantages, especially if your work entails multiple trips during any given year. For many travelers, who have worked on their profile for some time, cards are interesting, due to the potential to earn at a reasonable pace, with many points going into the balance if there are purchases on the card from their airline or the like. If you can pay your balance on time each month, then there is a potential to earn many more free points and this over the long term leads to very significant savings.
American Airlines cards are designed to attract those with moderate to excellent credit scores because they provide better access to different kinds of cards and the associated benefits. This, for some, is also a way to boost travel reward programs as well, with every purchase made with the card generating more miles, as such you are improving credit and also building a future fund for your next trip or vacation. Such cards also help avoid time limits on these earned miles which can be quite helpful if you travel less regularly.
The straightforward accumulation structure, with a simple 1 mile earned for each dollar spent, helps with predictability. The priority boarding option, in particular, is very popular amongst travelers as it shortens waiting times and can actually add to the overall positive experience. The value of not having to queue, is something to consider as part of your overall decision making process, since all these small advantages really can add up.
The value of a free checked bag for you and maybe several traveling companions can mean serious cost savings as well, since you would not have to pay $30 each way for the luxury of not needing to haul bags all over. If your aim is a credit score, and you do value travel, then this kind of card might very well be suited to your needs. These points can also be redeemed across the Oneworld alliance, opening up lots of travel possibilities across multiple continents. Do not ignore also the travel insurances as those are useful for a peace of mind, and the lack of foreign transaction fees means that you do not have to keep adding some extra percent to the final value in every single transaction.