NEW YORK, September 20 — The bottom line on airline credit cards is a single question, and it has nothing to do with how many miles a sign-up offer dangles: does the value you actually get from the card beat the annual fee you pay for it? If the answer is yes, renew. If it is no, think hard before you call to cancel.
That is the framework consumer-finance guidance has settled on for travelers weighing a cobranded airline card, and it holds whether you fly twice a year or twice a month. The reason to hesitate on cancellation is not sentimental.
Age of accounts is one of the factors used in determining credit scores, and the longer a card has been held, the more damage closing it can do. So the arithmetic of a card that no longer pays for itself has to be weighed against a credit-score cost that lingers.
Call first, cancel later
There is a step before cancellation, and it costs nothing but a phone call. The guidance is to contact the issuer and explain that cancellation is under consideration. That conversation can produce a retention offer — bonus points for hitting a spending threshold, or a waived annual fee — which can flip a marginal card back into the keep column.
What you are buying with the fee varies widely by card. Common benefits include free checked baggage, companion tickets, priority boarding, lounge access, and discounts on inflight purchases.
More premium cards may earn elite qualifying miles for travelers chasing airline status, and may include lounge access as well. Just about every type of traveler can use an airline card, from beginners in the points and miles game to seasoned frequent flyers. Even casual travelers can extract meaningful value from perks like free checked bags and priority boarding.
The selection logic should match budget and travel habits: infrequent travelers may do best with a low annual fee and fewer benefits, while frequent travelers may prefer a premium card with a higher annual fee and luxury benefits. Earn rates vary by card, and cards with higher annual fees typically offer higher earn rates.
Watch the expiration clock
Mileage expiration is the consideration travelers most often overlook. Many top U.S. airlines, including Delta, JetBlue, Southwest and United, have no mileage or points expiration dates, so miles are not lost even after a stretch of account inactivity. American Airlines miles expire after 24 months of inactivity.
Alaska Airlines will lock an account after 24 months of inactivity, though the account can be reactivated by calling customer service. As a general rule, travelers should earn or redeem miles semiregularly with airlines that do have expiration dates.
Cobranded airline spending counts as account activity for airlines like American Airlines whose miles do expire, so carrying an airline credit card can help prevent mileage expiration. What to watch next: the annual renewal notice. That is the moment the value-versus-cost math gets real, and the moment a call to the issuer is most likely to pay off.
