New United Cards. Are they improved?
Tl;dr: these card will reward United loyalists, but are much harder to justify for infrequent flyers. The Explorer may be the best entry-level
United has revamped their credit cards and, in line with recent trends, that means a few things: a big introductory welcome offer, higher fees, more statement credits, and greater benefits for bigger spenders. These intro offers are solid—80-95k on the premium cards, even 30k on the no-fee card—and some of the best these cards have ever seen.
For bonus-timing purposes, now would be a great time to pick up a United card. But are these changes for the better, and how do these cards stack up against the competition?
Gateway: a decent no-fee card
The no-fee Gateway offers decent earnings for the category, with double miles on United, gas, and transit/commuting purchases. The only benefit when traveling with United is a discount on in-flight purchases, but you can unlock two free check bags and discounts on mileage redemptions after spending $10,000 in a calendar year. The card also boasts impressive benefits like rental car coverage, purchase protection, extended warranty, and concierge service.
As a way to avoid bag fees without paying an annual card fee, this could be a solid option, but I think most people flying United enough to get real value from that approach would probably be better off with an Explorer or Quest. The Gateway looks like one of the best no-fee airline cards… but that’s not saying much. And compared to top-tier no-fee cards like the Bilt Mastercard, Chase Freedom Unlimited, or Amex Blue Cash Everyday, it’s clearly a step behind.
Explorer: the best casual entry-level airline card?
Delta revamped their Gold card last year, setting the bar for an entry-level airline card in the process. For $150, that fee offers a $100 statement credit towards a hotel booking via Delta, a free checked bag and priority boarding, 2x on dining and groceries, and a 15% discount on mileage bookings. Cardholders can also earn a $200 flight credit after spending $10,000 in a given year.
So how does the Explorer card compare? I actually think it’s better for the casual flyer, but worse for the low-end loyalist.
Against a $150 fee (waived the first year), the Explorer offers double points on United, dining, and hotels, standard benefits liked a free checked bag, priority boarding, and in-flight purchase discounts, plus the star benefit of two United Club lounge passes so visit twice yourself or once with a companion. The annual fee is offset by two $50 hotel credits, $5 in monthly rideshare credits, and two $25 rental credits (the hotels and rental cars must be booked via United). You can earn a $100 travel credit after spending $10,000 on the card, and a 10k mile redemption discount after spending $20,000.
I think the Explorer is better for the casual flyer because it’s easier to break even on the annual fee, and the lounge passes are a very valuable benefit—especially if you only fly United once or twice a year.
For the more engaged flyer, though, the Delta card is superior, in my view. It’s reward for spending $10,000 on the card is twice as valuable as the Explorer’s. And if you regularly fly with Skymiles, the 15% award flight discount can pay immediate, significant dividends, without any spending requirement. With Skymiles deals fairly easy to find and Skymiles relatively easy to earn in bulk with cards like the Amex Gold, the Delta card is more likely to pay off for a cardholder over the long term.
Quest: a disappointment
The new $350-fee Quest card offsets its fee with a $200 United travel credit (in the form of Travelbank cash), $100 in rideshare credits spread out over small monthly increments, two $40 discounts on rental cars from Avis or Budget booked via United, and another $300 in credits towards luxury purchases (high end hotels and private-ish jet service). There’s also a 10k mileage discount each anniversary year. Realistially, that’s probably easily $350 in benefits to offset that annual fee. (You can also get another 10k discount after spending $20k, or two global Economy Plus upgrades after spending $40k)
Meanwhile, the card earns 3x on United, 2x on dining, hotels, and other travel, while netting you two free checked bags and priority boarding.
So what’s the problem with the Quest?
There’s just no upside. You likely need to take both a paid United flight and an award redemption every single year just to break even on the Quest’s annual fee. And once you do, what do you get? Two free checked bags. Unless you’re regularly lugging two checked bags (and that sounds miserable) or dropping the $40k to earn the upgrade certificates, I’m not sure what the benefit of holding this card is.
By contrast, the lower and higher-tier United cards come with a way into the United Club. Both cards offer a free checked bag and priority boarding. And the Explorer does it at a much lower cost and doesn’t require any United Travel to break even. Meanwhile the Quest’s rival, the Delta Amex Platinum, offers unique perks like the 15% discount on award flights, a companion certificate, and access to the upgrade list.
United Club: for the high rollers
I won’t spend much time on this one, as the revamped United Club (apparently no longer “Infinite”) card has raised its annual fee to $695, just about the highest annual fee out there. While raising that fee by so much, United actually reduced lounge access, dropping guest privileges from two to one and taking away access to partner lounges, now requiring $50k in spending to regain it.
United Club access is still uncapped, so at least United has Delta beat in that regard.
Conclusion
I really like the new Explorer as an option for the infrequent United flyer, but in general, United’s card lineup still lags behind the vaunted Amex-Delta partnership, and the Quest and Club cards are particularly disappointing. If the cards make sense for you, now is a great time to pick one up with the massive bonuses currently on offer. But with mostly-negative changes, I wouldn’t rush out to grab one just because of these bonuses.