Icelandair Premium Mastercard® from First National Bank of Omaha Review

When it comes to choosing a credit card, the options can be overwhelming. Whether you’re looking for travel rewards, cash back, or low-interest rates, it’s crucial to find a card that aligns with your financial goals. The Icelandair Premium Mastercard® from First National Bank of Omaha is a travel rewards card designed specifically for those who frequently fly with Icelandair. In this comprehensive review, we will dive deep into the features, benefits, pros and cons, and overall value of this card to help you make an informed decision.

Icelandair Premium Mastercard® Key Takeaways

Before we delve into the intricate details of the Icelandair Premium Mastercard®, let’s highlight the key takeaways that make this card unique:
– Reward Rate: Earn 2x points per $1 spent on Icelandair purchases and 1x point per $1 spent everywhere else.
– Welcome Bonus: Receive 10,000 points upon making your first purchase after account opening.
– Annual Fee: $39 annually.
– APR: Variable APR of 26.24% for purchases and balance transfers.
– Credit Score Requirement: Suitable for those with good to excellent credit (670-799).
– No Foreign Transaction Fees: Save money when making purchases abroad.
– Issuer: First National Bank of Omaha.

Icelandair Premium Mastercard® Pros and Cons

Pros

1. Generous Rewards on Icelandair Purchases:
– The card offers 2x points per $1 spent on Icelandair purchases, which is an attractive rate for frequent Icelandair flyers.
2. Welcome Bonus:
– The 10,000-point welcome bonus is a great incentive for new cardholders. This can be a substantial boost for your travel plans right from the start.
3. No Foreign Transaction Fees:
– For international travelers, this feature is a significant advantage as it eliminates the extra charges typically associated with foreign transactions.
4. Travel Focused Rewards:
– The rewards structure is specifically designed to benefit travelers, making it a good fit for those who prioritize earning points for future travel.

Cons

1. Annual Fee:
– The $39 annual fee might be a drawback for some, especially if they do not travel frequently enough with Icelandair to justify the cost.
2. High APR:
– The variable APR of 26.24% is relatively high. This could be a concern for those who carry a balance, as the interest charges can add up quickly.
3. Limited Reward Categories:
– While the card offers excellent rewards for Icelandair purchases, the 1x point per $1 spent on all other purchases is not as competitive compared to other travel rewards cards.
4. No Introductory APR:
– There is no introductory APR period for purchases or balance transfers, which might be a disadvantage for those looking to finance large purchases or consolidate debt.

Icelandair Premium Mastercard® Benefits

The Icelandair Premium Mastercard® comes with a variety of benefits tailored to enhance your travel experience, especially if you are a frequent flyer with Icelandair. Let’s explore these benefits in detail:

1. Reward Points

– 2x Points on Icelandair Purchases:
The standout feature of this card is the ability to earn 2x points per $1 spent on Icelandair purchases. This includes flights, in-flight purchases, and other services offered by Icelandair. If you fly with Icelandair frequently, these points can accumulate quickly, allowing you to redeem them for future flights or upgrades.
– 1x Point per $1 Spent Everywhere Else:
For all other purchases, you earn 1x point per $1 spent. While this is not as high as some other travel rewards cards, it still allows you to earn points on your everyday spending.

2. Welcome Bonus

– 10,000 Points Upon First Purchase:
New cardholders can earn a welcome bonus of 10,000 points after making their first purchase. This can be an excellent way to jumpstart your rewards balance and can be redeemed for flights, upgrades, or other travel-related expenses.

3. No Foreign Transaction Fees

– Save on International Purchases:
One of the most significant advantages of this card is the absence of foreign transaction fees. When traveling abroad, you won’t incur the typical 2-3% fee on purchases made in foreign currencies, allowing you to save money on your international travels.

4. Travel Insurance and Protections

– Travel and Emergency Assistance:
Cardholders have access to travel and emergency assistance services, which can be invaluable when traveling abroad. This includes medical and legal referrals, emergency ticket replacement, and more.
– Auto Rental Collision Damage Waiver:
When you use your Icelandair Premium Mastercard® to rent a car, you can decline the rental company’s collision damage waiver and still be covered for damage due to collision or theft.
– Fraud Protection:
The card comes with zero liability fraud protection, ensuring that you are not held responsible for unauthorized charges made on your account.

5. Additional Travel Perks

– Priority Boarding:
Some cardholders may be eligible for priority boarding on Icelandair flights, allowing you to board the plane ahead of general boarding and secure overhead bin space for your carry-on luggage.
– In-Flight Discounts:
The card may offer discounts on in-flight purchases, such as food, beverages, and duty-free items, adding to the overall value of the card for frequent Icelandair travelers.

Conclusion

The Icelandair Premium Mastercard® from First National Bank of Omaha is a niche credit card designed for a specific audience: those who frequently fly with Icelandair. Its rewards structure, welcome bonus, and travel-focused benefits make it an attractive option for Icelandair loyalists. However, it may not be the best choice for those who do not travel often or prefer a more versatile rewards card.

Final Thoughts

1. For Frequent Icelandair Flyers:
– If you frequently fly with Icelandair, the 2x points on Icelandair purchases and the welcome bonus can provide significant value. The no foreign transaction fees and travel protections further enhance your travel experience.
2. For Occasional Travelers:
– If you travel infrequently or prefer flying with multiple airlines, you might find more value in a general travel rewards card that offers higher earning rates on a broader range of purchases and more flexible redemption options.
3. Consider the Annual Fee and APR:
– The $39 annual fee is relatively low compared to many other travel rewards cards, but it’s still essential to consider whether the benefits outweigh the cost. Additionally, the high APR means this card is best suited for those who can pay off their balance in full each month to avoid interest charges.

Alternative Options

If the Icelandair Premium Mastercard® doesn’t seem like the right fit for you, consider exploring other travel rewards cards that offer higher earning rates on a variety of categories, more flexible redemption options, and additional perks such as airport lounge access, free checked bags, or annual travel credits.
In conclusion, the Icelandair Premium Mastercard® is a solid choice for Icelandair enthusiasts looking to maximize their rewards and enjoy travel-related benefits. By carefully considering your travel habits and spending patterns, you can determine if this card aligns with your financial goals and enhances your overall travel experience.