United-Continental Merger Creates New United Credit Card

The new combined credit card that grew out of the Continental-United merger more closely resembles the Continental OnePass than the card’s predecessor, the United Mileage Plus. Now that the two airlines have become one in the eyes of God and travelers, all of the existing United credit card options are being phased out and replaced by the newbie, the United Mileage Plus Explorer. While slightly higher annual fee may make the newcomer seem like a step down, the increased rewards rate, perks and travel benefits more than make up for a slight fee increase. Don’t let the fee fool you: it’s a pretty great airline credit card.

United MileagePlus® Explorer Card
	Earn up to 40,000 bonus miles & first year free, a $95 value* First checked bag is free for you and a companion when you fly United flights, up to a $50 value Board your flight before general boarding with priority boarding privileges Visit the United Club with two complimentary day passes every year, up to a $100 value Earn 2 miles for each $1 spent on airline tickets purchased from United and 1 mile per $1 for everything else Your miles don't expire and there is no limit to the number of miles you can earn
Annual Fee Signing Promo APR, variable* Intro APR Promotions $0 the first year, then $95 25,000 United Airlines Miles Bonus - after your first use, an additional 5,000 when you add an authorized user to your account, and 10,000 more miles when you spend $25,000 on your card. APR: 15.24% Default APR: 29.99% Cash Adv: 19.24% Purchase: None Bal Trans: None

How does the new United stack up against its predecessor?

New MileagePlus Explorer	Old MileagePlus Signature
Details
Earn 2 miles/$1 spent on United/Continental Earn 1 mile/$1 spent elsewhere Get an extra 10k miles for spending $25k a year	Earn 1 mile/$1 spent anywhere, even United Get an extra 10k miles for spending $25k a year Upgrade to Select for $35/yr and earn 3 miles/$1 on United flights, and 2 miles/$1 on bonus categories
Up to 40k-mile bonus	Up to 40k-mile bonus + $50 statement credit
First checked bag free (saves up to $100 roundtrip*)	No waived bag fee
Get priority boarding and 2 free lounge passes/year	No perks
Comes with Visa Signature benefits, including: travel accident insurance, lost baggage insurance, car rental insurance and roadside/travel emergency services
$95 annual fee, waived first year	$60 annual fee, waived first year ($95 for Select)

*United says that this perk is only worth $50 roundtrip, but we’re not quite sure why.

So do these shiny new perks and the bumped-up rewards rate make up for the increased annual fee? We think so. The savings on waived checked baggage fees, which can amount to $100 for a roundtrip flight, will make up for the annual fee by themselves. It’s a pretty good deal, so if you were thinking about switching over or getting a new United card, it’s well worth your while. Note: current United cardholders will not automatically be switched to the new United Explorer; you’ll have to call the number on the back of your credit card if you want to change. For a list of which airlines waive bag fees, and which credit cards will if the airline doesn’t, check out our infographic on bag fees and elite status.

The merger makes the United credit card all the sweeter

A couple of changes to lounge and mile policies have made the United MileagePlus Explorer even more attractive.

• Starting on September 30th, AmEx cardholders (like the Platinum) with Priority Pass memberships won’t get access to United Red Carpet and Continental Presidents Club lounges. The only credit cards that can get you in are – you guessed it – the United and Continental cards.
• Continental miles never expire, but United’s do. After the programs merge on January 1st, 2012, the United policy will prevail: miles will expire after 18 months. However, if you have a credit card with an annual fee (like the Explorer!) your miles will never expire.
• United currently allows you to use 50,000 miles to book a ticket, while Continental has capacity controls that restrict booking. The Continental policy will prevail here, but annual fee cardholders won’t be subject to capacity controls.

The new United Mileage Plus Explorer is basically the Continental OnePass’ twin brother, so the two credit cards are pretty much merged in everything but card design and carrier (read on for a description of the ever-so-slight differences). The two frequent flyer programs will merge at the end of this year. Any Continental or United miles you’ve accrued will be transferred to the joint program, including miles you’ve racked up on your credit card. The new company, and its frequent flyer program, will have United’s name and Continental’s logo (matrimonial compromise, perhaps?) and any elite status earned through either program will carry over to the combined program next year.

For those who are curious, here’s how the mile/card merge will go:

• United cardholders: United is no longer issuing any of the the old cards, including the Signature or Select, but current cardholders keep their current cards. If you want to be upgraded to the Explorer, call the number on the back of your card. You probably won’t have to switch credit card numbers, according to issuer Chase.
• Continental cardholders: the new conglomerate wants to phase out the Continental card in favor of the United ones. Current Chase Continental OnePass cardholders will soon get all the benefits of the Explorer, but will be able to keep their cards for the time being. At some point next year, your OnePass will be replaced with an Explorer (hopefully, again, without having to switch card numbers).

United vs. Continental: sibling rivalry

How does the new United Mileage Plus Explorer compare to the equivalent Continental OnePass? They’re actually almost identical, but for one thing: the United is a Visa Signature, while the Continental OnePass is a World MasterCard.

The Continental OnePass, like the Explorer, gives a 30k-mile signup bonus, one free checked bag, lounge access, and priority boarding; it has the same rewards rate and annual fee as well.

The differences between Visa Signature benefits and World MasterCard benefits are slight, and often come down to minutiae: when it comes to rental car insurance, for example, MasterCard gives you 60 days to report an incident while Visa only gives you 45. But thankfully, both of these cards come with primary rental insurance, meaning that if you have an accident, your credit card can protect you without your own insurance company having to get involved.

If you’re so inclined, you can check out our blog post for a comparison of Visa vs. MasterCard. Other than that, though, United and Continental have essentially identical credit cards.