First, some good news. The card will offer some valuable 2X bonus spending categories as well as a larger sign-up bonus for applicants. Along with additional side perks like priority boarding, it will also include some other useful side benefits such as an increased sign-up bonus.
There are some negative updates to the card, such as an increased annual fee and a higher threshold for earning the introductory bonus. Also, there have been new requirements to get the popular Companion Fare perk.
Current cardholders will be able to enjoy the new rewards and perks immediately. The annual fee will rise from $75 to $95 on their next anniversary.
The updates make the Alaska Airlines Visa Signature (r) credit card more in line with other airline credit cards of similar price points. Let’s take a look at the changes:
Alaska Airlines Visa Signature (r) credit card – at a glance
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What are the positive changes?
The higher introductory bonus should be welcomed by new cardholders.
This means that the new offer of 70,000 miles is worth $240 more than its predecessor, the old offer of 50,000 miles. Even though the annual fee has increased, this added value compensates for it. The new sign-up bonus will only be available for 90 days and requires spending $1,000 within the first 90.
It’s also great to be able to earn 2 Alaska Airlines points per $1 on gas, cable, streaming, and local transit purchases. The card had a few weaknesses, including 3 miles per $1 on Alaska Airlines purchases and 1 mile for every $1 on all other purchases. Marriott is the only partner that converts its points into Alaska miles (aka Mileage Plan Miles), so flying on Alaska Airlines or a partner airline is the only way to earn Alaska Airlines Miles.
The ability to earn bonus mileage in any capacity is a positive.
Side perks include priority boarding, discounted memberships to Alaska Airlines lounges and 10% bonus miles for Bank of America accounts.
What are the negative changes?
NerdWallet has long ranked the Alaska Airlines Visa Signature(r), credit card as a top-rated airline credit card. However, it does have some limitations.
The annual fee has increased by $20, so the card will become more costly to carry around. However, the annual fee for most co-branded mass-market airline credit cards is $95 While the $75 fee was attractive for a while, it will still be possible to get more than $95 annually from this card.
The card’s valuable Companion Fare perk is the most significant negative change. Cardholders used to receive a Companion Fare each year upon paying their annual fee. To qualify for the Companion Fare, cardholders need to spend $6,000 on eligible purchases during the cardmember year. This is not the calendar year. (Note: Existing cardholders are not affected by this change, however there is a slight increase in the Companion Fare “taxes” that cardholders will have to pay.
Although this is worse than a no spending requirement, it is still lower than any airline card that charges $95 annually and offers a companion flight. It would still have been a valuable perk compared to its competitors if the Companion Fare had been offered by the card with a $6,000 spending obligation.
To receive free checked luggage, cardholders will need to pay for their flights using their Alaska Airlines Visa Signature(r). Travelers could previously use any card to pay their flight, provided they were Alaska Airlines cardholders. Flyers who have been used to booking flights using a card that provides trip cancellation or trip delay insurance such as the Chase Sapphire Reserve(r) will be affected.