Is the Iberia Visa Signature Card Worth the Annual Fee?

Big spenders can recoup their annual fee by earning the large sign-up bonus and discount voucher.

Andy ShumanSeptember 21, 2020
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Is the Iberia Visa Signature card worth the annual fee?

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Applying for the new Iberia Visa Signature® Card gets you a nice welcome bonus: Earn up to 100,000 bonus Avios. Earn 50,000 bonus Avios after you spend $3,000 on purchases within the first 3 months of account opening. Plus earn an additional 50,000 bonus Avios after you spend $20,000 on your purchases within your first year of account opening.

Many U.S. households spend over $20,000 annually, so pocketing this nice 100,000 Avios package might not be an arduous task even if you don’t use the card for all expenditures (but it’s a good idea to track your credit card use to make sure you don’t miss out on this bonus).

This hefty two-part bonus might be your main motivation to apply for the card and pay the $95 annual fee. But keeping the card year after year makes sense only if you value its ongoing benefits.

Earning Avios with the Iberia Visa Signature® Card

3 Avios per $1 spent on four airlines

You will earn 3 Avios per $1 spent using your Iberia Visa Signature® Card for flying all Avios airlines: Iberia, British Airways, Aer Lingus and LEVEL. This is pretty unique since airlines’ co-branded credit cards don’t usually earn extra miles for flights on other airlines. And this earning rate is far from shabby. To put things in perspective, American and United credit cards with comparable annual fees earn 2 miles per $1 spent on their respective airlines.

2 Avios per $1 spent on hotels

You earn 2 Avios points for every $1 spent on hotel accommodations charged to your card and 1 Avios point per $1 spent on everything else.

Get a 10% discount on Iberia flights

The 10% discount on Iberia flights is a valuable benefit. If you buy two round-trip tickets between the U.S. and Europe annually, for example, that will most likely cover your $95 annual fee. Add more tickets (the discount is good for up to nine traveling companions on the same reservation), and you’re definitely in the positive.

$1,000 discount voucher annually on Iberia flights

If you’re a reasonably big spender, this benefit has the potential to cover 10 annual fees with some change to spare. When you spend $30,000 a year on the card, you'll get up to a $1,000 voucher toward buying two tickets on the same flight. This is an opportunity to save up to $1,000 year after year. But again, you need to spend $30,000 in a calendar year (purchases still pending Dec. 31 don’t count).

If your two airline tickets (before taxes and fees) cost less than $1,000, you’ll get the actual cost of tickets. For example, this voucher can get you two $400 tickets exclusive of airline taxes and fees, but the remaining $200 will be forfeited.

No foreign transaction fees

This card has no foreign transaction fees, so feel free to use your Iberia Visa Signature® Card anywhere in the world, which can save you around 3% on purchases internationally.

Will you benefit from the Iberia Visa Signature® Card?

If you’re interested in earning Avios to redeem on Iberia, LEVEL, British Airways, Aer Lingus and all Oneworld airlines including American, Japan Airlines and Cathay Pacific, then the Iberia Visa Signature® Card is worth a good look — assuming you can spend at least $3,000 in three months to earn the massive welcome bonus.

If you frequently fly Iberia and can take advantage of the 10% discount, you might want to consider keeping the card long term. Even with the annual fee, the math works in your favor.

If you spend $30,000 or more annually and travel long-haul on Iberia with a partner, you may profit quite nicely from the $1,000 discount voucher.

However, there are some drawbacks. Since the Iberia Visa Signature® Card is issued by Chase, remember the Chase 5/24 rule, which limits the number of credit cards Chase will approve you for in any 24-month period.

This is something to keep in mind if there are other credit cards that you want more than this one.

Another drawback is having to spend a reasonably high amount for the card’s major benefits ($20,000 for an additional 50,000 Avios in the first year and $30,000 annually for the $1,000 discount voucher).

Whatever you earn with the Iberia Visa Signature® Card may translate into lost earning opportunities from other credit cards, so make sure you want Avios more than cash back or miles and points from other loyalty programs. If you do, the card is more than worth its annual fee when the spending thresholds are met.

How to Maximize Your Rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2020, including those best for:

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