Airline co-branded cards: Free versions

The three full-service airlines in the US: American, Delta, and United, not only compete with each other in the air but also in banks.  They each offer a host of co-branded credit cards with partner banks.  American partners with Citi and Barclays, Delta partners with American Express, and United partners with Chase.  The credit cards are largely meant to compete with each other but aren’t actually that different (like the main cabin of most airlines honestly…).  I figured I’d compare the cards both by airline and by price point.  This article will cover all the free credit cards: the American Airlines AAdvantage MileUp card, the Delta SkyMiles Blue card, and the United Gateway card.  I’m also going to be giving them points to rank them against each other.

I provide the information here just to give readers a vague idea if the rewards offered by the card might make sense for them to consider the card.  All information should be confirmed with the card company before applying.

Welcome Offers

The free credit cards have the lowest welcome offers of the various airline co-branded cards.  American’s card offers 10 000 miles and a $50 statement credit after spending $500 in 3 months.  Delta’s card offers 10 000 miles after spending $1 000 in 6 months.  United’s card offers 30 000 miles after spending $1 000 in 3 months.

The winner here is the United card because it offers way more miles than the others.  This earns United’s card 3 points.  American’s and Delta’s cards earn 2 points and 1 point, respectively, for their welcome offers.

Miles earnings

These free cards have relatively limited point earning opportunities.  The American card offers 2x miles on American and at grocery stores. The card also offers 1 loyalty point per dollar spent (which is hard to value).  The United card offers 2x miles on United, gas stations, local transit, and commuting. The Delta card offers 2x miles on Delta and dining.  All cards offer 1 mile/$ on everything else.

The winner here is potentially up for debate.  The loser is the Delta card because 2x on dining is pretty weak (1 point).  The United card has broader (and more) rewards categories than the American card, but the multipliers are not amazing, so I’m going to say these cards tie for 2^nd place (2 points each).

Elite earnings

Only the American Airlines MileUp card earns points toward status. Like other American Airlines credit cards, it earns 1 loyalty point per $1 spent (in any category). As the only card here that offers elite credit, this card gets 3 points and the others 0.

Benefits

The American card offers a 25% savings on inflight food and beverage on American but has a 3% foreign transaction fee.

The Delta card offers 20% back on inflight food/beverages on Delta.

The United card offers 25% back on United inflight food/beverages and on ‘premium’ (alcoholic) drinks in the United Club.

Again, the Delta card has the weakest discount (1 point), and the United card has the strongest (3 points).  The American card’s inflight benefit is the same as the United one, but it’s a travel card with a foreign transaction fee, which is annoying (1 point).

How to use the points

The main use for earning airlines points is to redeem them for flights on the respective airline.  In general, American has the best redemption opportunities because they still use an award chart, rather than dynamic pricing, for redemptions on partners.  United is generally the next best because of its Star Alliance partners and generally better redemption prices.  Delta’s miles are generally worth the least. 

In terms of redeeming the miles, American comes first (3 points), United comes second (2 points), and Delta is the weakest (1 point).

Which of these cards is/are right for you?

These cards are all pretty good for someone new to the travel credit card game who want to earn some miles on their preferred airline. I think the Delta card is the weakest offering overall and unlikely to be worth getting as a new account.  The United card I think has the strongest proposition, especially given its welcome bonus.  However, I think these cards are actually best for someone who wants to downgrade from a card with an annual fee without closing the account.

The card scores break down as 13 points for United, 11 points for American, and 4 points for Delta.