5 Things to Know About the Avelo Airlines Credit Card

Depending on how you travel, the Avelo Airlines World Elite Mastercard could offer savings on flights to and from locations throughout the East Coast and Puerto Rico. Issued by First Electronic Bank and serviced by Cardless, the $99-annual-fee card features solid ongoing rewards on purchases, as well as perks that include a free standard seat assignment and priority boarding.

But Avelo is a small airline with a small footprint, so its credit card won’t be a practical fit for a lot of travelers. Moreover, it lacks a key perk you’d expect from an airline card with this kind of annual fee — a free checked bag benefit.

Here’s what to know about the Avelo credit card.

1. Ongoing rewards are generous …

Rewards on the Avelo credit card are earned as points and redeemed as Avelo Cash. You’ll get 5% back on Avelo purchases (5 points) and 2% back (2 points) on all other purchases. One point is equal to $0.01 in Avelo Cash, which can be used to purchase Avelo products and services. Avelo Cash doesn’t expire as long as your account remains open and active.

Those are fairly high rewards rates for an airline credit card at this price point. Many similar cards top out at only 2x back on spending with the airline, and offer just 1x back on all other purchases.

Still, you’ll be earning rewards redeemable only with Avelo. If you’d prefer more flexibility, consider a general-purpose travel credit card like the $95-annual-fee Chase Sapphire Preferred® Card. It offers 5 points per $1 spent on all travel purchased through Chase; 3 points per $1 spent on dining, select streaming services and online grocery purchases (not including Target, Walmart and wholesale clubs); 2 points per $1 spent on travel not purchased through Chase; and 1 point per $1 spent on other purchases. You can use those points to book travel via Chase’s portal, or you can opt to transfer them to Chase’s multiple travel partners, including major hotels and airlines, like United and Southwest.

The card features a rich welcome offer, too: Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.

2. … But the welcome bonus is meager

As of this writing, new cardholders can earn $250 in Avelo Cash (more on that below) after spending $1,000 on purchases in the first 90 days of opening the account.

That’s a modest offer, especially considering the card’s $99 annual fee. Other airline credit cards with comparable fees feature much higher welcome bonuses, although their spending requirements to earn it might be higher.

3. You won’t get free checked bags

Among its perks, the Avelo Airlines card advertises … a free carry-on bag. Not a free “checked” bag, mind you. A free carry-on. Otherwise, if you don’t have the card, you’ll owe anywhere between $45 to $77 (as of this writing) for your carry-on item, depending on size.

Notably, what you won’t get with the card is a free checked bag, which also will cost you up to $77 depending on size. So whether you’re a cardholder or not, it’s best to pack light when flying Avelo.

Of course, other much larger airlines already allow you a free carry-on bag, regardless of whether you have their co-branded credit card. And if you do happen to have their co-branded credit card, you might also get a checked-bag benefit, which alone can often justify the card’s annual fee.

If you’re unwilling to compromise on your bags, the Bank of America® Premium Rewards® credit card offers up to $100 in airline incidental statement credits for qualifying purchases like seat upgrades, baggage fees, in-flight services and airport lounges. It also earns 2 points per dollar on travel and dining, and 1.5 points per dollar on all other spending.

🤓 Nerdy Tip

Holders of the Avelo credit card do get free standard-class seat assignment and free priority boarding. Also, although it’s not a cardholder perk, Avelo Airlines doesn’t charge internet booking fees or convenience fees, and families with children 14 and younger can also be seated next to their child at no extra cost.

4. The APR soars on ongoing balances

As of this writing, the card charges an ongoing variable APR of more than 29%. If you’re not in the habit of paying off your bill in full every month to avoid the interest charges, this card or any rewards credit card will not be a good match for your spending. In that case, you’re better off with a credit card that offers a low ongoing interest rate.

Credit unions have some of the lowest interest rates on credit cards. They require you to be a member, which adds a few extra steps in the application process, but some like PenFed Credit Union make it easy to join. It offers the PenFed Pathfinder® Rewards Visa Signature® Card, which has a lower APR compared to rewards credit cards at banks. It earns 3 points per dollar spent on all travel categories, 2 points per dollar spent on dining, and 1.5 points per dollar on all other purchases. (PenFed Honors Advantage members earn 4 points per dollar spent on all travel categories and 3 points per dollar spent on dining.) It has a $95 annual fee, but it makes up for it with its statement credit of up to $100 per calendar year toward incidental air travel fees. The statement credit can cover baggage fees, flight-change fees, in-flight food and beverage purchases, airport lounge day-passes and more.

5. It doesn’t charge foreign transaction fees

The Avelo Airlines may not take you to international destinations, but the Avelo card can still be a good travel buddy if you sometimes travel overseas with other airlines. That’s because it doesn’t charge foreign transaction fees and, as a Mastercard, it’ll be widely accepted globally.

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