Chase Raises Annual Fees on United Airlines Credit Cards

Chase is changing its United Airlines credit cards with higher annual fees and new benefits. This follows what other card companies like American Express have done – turning credit cards into “coupon books” with many statement credits. All six United cards are getting updates with new perks, but also higher costs.

The biggest changes include more travel credits, better elite status earning, and new benefits like hotel credits and ride-sharing credits. However, annual fees are going up on all cards except the no-annual-fee The New United Gateway^℠ Card. For example, The New United Club℠ Card fee jumps from $525 to $695, while The New United℠ Explorer Card increases from $95 to $150. Most current cardholders will see these changes at their next renewal date after August 1.

Our Take

For frequent United flyers who spend a lot on their cards, these changes are mostly positive. The new credits can more than make up for the higher fees if you use them. For example, The New United Quest℠ Card’s $100 fee increase is offset by a $75 boost in United travel credit plus new perks like a $150 hotel credit and monthly ride-sharing credits. People who travel often on United and can track and use these credits will come out ahead.

Our concern is for occasional United flyers with entry-level cards like the United Explorer card. While the new benefits look good on paper, they require more effort to track and use. If you only fly United a few times a year, you’ll need to decide if keeping track of monthly credits is worth your time. If you check bags on at least four one-way United flights yearly, the Explorer card still makes sense. Otherwise, you might consider downgrading to the no-annual-fee The New United Gateway℠ Card rather than canceling, since canceling cards can hurt your credit score.