Icelandair Mastercard® Review: A Detailed Look at its Features and Benefits

Travel enthusiasts, especially those who frequent Iceland, might find the Icelandair Mastercard® from First National Bank of Omaha (FNBO) to be a compelling choice. The card offers unique rewards tailored specifically for Icelandair purchases, coupled with several other benefits. In this review, I will draw upon my expertise in financial products to give you a comprehensive overview of the Icelandair Mastercard®, including its key takeaways, pros and cons, benefits, and concluding thoughts.

Icelandair Mastercard® Review

The Icelandair Mastercard® is designed for travelers who want to earn rewards while flying with Icelandair. This card offers 1x point per $1 spent on Icelandair purchases and 0.5x points per $1 spent on all other purchases. Additionally, new cardholders receive a generous 5,000x points upon making their first purchase after the account is opened.

Key Features:

– Rewards Rate: 1x point per $1 spent on Icelandair purchases, 0.5x points per $1 spent elsewhere.
– Sign-Up Bonus: 5,000x points after the first purchase.
– Annual Fee: $0.
– Foreign Transaction Fees: None.
– Variable APR: 28.24% for purchases and balance transfers, 29.74% for cash advances.
– Credit Score Requirement: Good to Excellent (670-799).

Icelandair Mastercard® Key Takeaways

Rewards Program:

The rewards program is straightforward but highly specialized. The 1x point per $1 spent on Icelandair purchases makes it ideal for frequent flyers of the airline. However, the 0.5x points on other purchases may not be as competitive compared to other travel rewards cards.

Sign-Up Bonus:

The 5,000x points sign-up bonus is an attractive offer for new cardholders. This bonus can significantly enhance your points balance right from the start, making it easier to redeem for travel rewards sooner.

No Annual Fee:

One of the standout features of this card is the $0 annual fee. This makes it a cost-effective option for those who want to earn rewards without the burden of an annual fee.

No Foreign Transaction Fees:

Another significant benefit is the absence of foreign transaction fees. This is particularly advantageous for international travelers who make frequent purchases abroad.

High Variable APR:

The card’s variable APR of 28.24% for purchases and balance transfers is relatively high. This makes it less suitable for carrying a balance month-to-month.

Credit Score Requirement:

The card requires a good to excellent credit score (670-799) for approval. This is a standard requirement for most rewards cards.

Icelandair Mastercard® Pros and Cons

Pros:

– No Annual Fee: The absence of an annual fee makes this card accessible to a wide range of users.
– No Foreign Transaction Fees: Ideal for international travelers.
– Generous Sign-Up Bonus: 5,000x points after the first purchase can be a significant boost to your rewards balance.
– Rewards on Icelandair Purchases: 1x point per $1 spent on Icelandair purchases is beneficial for frequent flyers of the airline.
– Purchase Protection and Fraud Protection: These features provide added security and peace of mind.

Cons:

– High Variable APR: The 28.24% APR for purchases and balance transfers can be a drawback if you plan to carry a balance.
– Limited Rewards on Non-Icelandair Purchases: 0.5x points per $1 spent on other purchases may not be competitive compared to other travel rewards cards offering higher rates.
– No Introductory APR Period: The lack of an introductory APR period for purchases or balance transfers may deter those looking to finance large purchases or consolidate debt.

Icelandair Mastercard® Benefits

Rewards Program:

The card’s rewards program is its primary attraction. You earn 1x point per $1 spent on Icelandair purchases, making it a great option for loyal Icelandair customers. The 0.5x points on other purchases, while modest, still contribute to your overall points balance.

Sign-Up Bonus:

New cardholders can earn 5,000x points after making their first purchase. This bonus can be a quick way to accumulate points and can be particularly useful for booking flights or upgrades.

No Annual Fee:

The $0 annual fee is a significant benefit, allowing you to earn rewards without any cost. This makes the card a low-risk option for those who want to dip their toes into the rewards program.

No Foreign Transaction Fees:

For international travelers, the absence of foreign transaction fees is a major advantage. You can make purchases abroad without worrying about additional charges, making your travels more economical.

Purchase Protection and Fraud Protection:

These features add a layer of security to your purchases. Purchase protection can cover eligible items against damage or theft, while fraud protection ensures that you are not held responsible for unauthorized transactions.

Manage Your Account Online:

FNBO provides an easy-to-use online platform where you can manage your account, pay bills, and track your rewards. This convenience is essential for staying on top of your finances.

Conclusion

The Icelandair Mastercard® from First National Bank of Omaha is a niche credit card that offers unique benefits for Icelandair customers. With a rewards rate of 1x point per $1 spent on Icelandair purchases and a generous 5,000x points sign-up bonus, it can be an excellent choice for frequent flyers of the airline. The $0 annual fee and no foreign transaction fees further enhance its appeal, making it a cost-effective travel rewards card.
However, the high variable APR of 28.24% and the limited rewards on non-Icelandair purchases may be drawbacks for some users. If you plan to carry a balance or want a more versatile rewards program, you might need to consider other options.
Overall, the Icelandair Mastercard® is a solid choice for those who fly with Icelandair and want to earn rewards without an annual fee. Its specialized benefits and travel-friendly features make it a valuable addition to the wallets of Icelandair loyalists.
As with any financial product, it’s essential to evaluate your personal spending habits and travel preferences before applying for this card. If the Icelandair Mastercard® aligns with your needs, it can be a rewarding companion on your journeys.
About the Issuer:
First National Bank of Omaha (FNBO) has a reputation for offering a range of credit cards that cater to different financial needs. Their customer service is generally well-regarded, and they provide various tools for managing your account online.
Manage Your Account & Pay Your Bill:
FNBO offers convenient online account management, allowing you to pay your bills and keep track of your rewards with ease. Customer service is also accessible for any queries or issues you might encounter.
In conclusion, the Icelandair Mastercard® is a specialized travel rewards card that offers significant benefits for Icelandair customers. While it has its limitations, its unique features and cost-effective structure make it a worthy consideration for frequent flyers of the airline.