Corporate rewards cards let business travelers accrue mileage from their favorite airlines while on company business. There are many benefits to using business airlines credit cards. There are also a number of downsides to using travel rewards credit cards for personal or business expenses. Details on the fine print for corporate rewards cards from Southwest, American Airlines, Delta, United and Continental and an overview of zero percent interest business cards may be a deciding factor in choosing a card that will benefit a business the most.
The Cons of Business Airline Credit Cards
Details about business airline credit cards are usually found in the credit card agreement, terms or disclosure. The biggest con to using a mileage company card is the annual percentage rates. The interest rates are often sky-high for using a business airline credit card. In addition, mileage company cards frequently charge a pricey annual fee just for using the card.
Complaints about Mileage Company Cards
Blackout dates and a reduced number of flights in recent years have impacted the popularity of mileage company cards. Cardholders frequently complain that the interest rate, annual fee and other fees and costs associated with using a business airlines credit card far outweigh the travel rewards available. For many people, it takes too long to accrue mileage with a company card. In addition, there’s a very real possibility that an airline could change its hub or go bankrupt, making the miles earned null and void.
Travel Rewards Credit Cards by Carrier
- Southwest Airlines frequent flyer credit cards for business travelers has a 13.65% variable interest rate for purchases and balance transfers and a variable cash advance APR (annual percentage rate) of 20.99%. The card also has a $59 annual fee and a balance transfer fee of up to $99.
- American Airlines corporate travel rewards credit cards have a variable interest rate of 14.99%, a variable cash advance APR of 19.99% and a default APR of 28.99% (variable). The annual fee for using this card is $75 after the first year.
- Delta Airlines SkyMiles frequent flyer credit cards for business owners have an 18.24% APR for purchases and a cash advance APR of 23.24%. The annual fee after the first 12 months is $95.
- The company cards from the United Airlines Mileage Plus program have a variable annual percentage rate of 14.99% with a variable cash advance APR of 20.99%. The annual fee for this card is $75 after the first year.
- Continental Airlines’ travel rewards credit card have a 14.99% variable APR for purchases and balance transfers and a 20.99% variable APR for cash advances. The annual membership fee is $85.
Zero Percent Interest Business Card Benefits
Zero percent interest business cards and low interest business credit cards can be an excellent alternative to airline credit cards. Instead of offering business travel rewards, the cards instead offer straightforward money-saving deals to business travelers. A zero percent interest or low interest business credit card will charge lower interest rates or have no interest rates for items purchased using the card. The discounted rate often extends to balance transfers, too. In addition, these economic alternatives to mileage company cards often do not charge an annual fee.
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