Is the United℠ Explorer Card Worth Its Annual Fee? A Comprehensive Review
For frequent flyers and United Airlines loyalists, the United℠ Explorer Card presents an attractive array of travel perks and rewards. However, with a $150 annual fee after the first year, potential cardholders often wonder if the benefits truly justify the cost. This in-depth review will examine the card's features, benefits, and potential value to help you determine if it deserves a place in your wallet.
Key Features and Benefits
The United℠ Explorer Card offers a range of features designed to enhance your travel experience and provide value beyond its annual fee. Let's delve into these benefits to understand what the card brings to the table.
Earning Miles
At the core of any travel rewards card is its ability to help you accumulate miles or points. The United℠ Explorer Card offers a tiered earning structure that favors United purchases and travel-related spending:
- 2X miles on United purchases
- 2X miles on dining, including eligible delivery services
- 2X miles on hotel stays booked directly with hotels
- 1X mile on all other purchases
While these earning rates may not be the highest in the market, they provide solid value for those who frequently fly with United or its partner airlines. The bonus categories of dining and hotels also add versatility, allowing cardholders to accumulate miles even when they're not in the air.
Sign-Up Bonus
New cardholders can typically earn a substantial sign-up bonus after meeting minimum spending requirements in the first few months. The exact offer varies over time, but it often provides enough miles for a round-trip domestic flight or a significant boost toward an international award ticket. This initial influx of miles can provide immediate value that often exceeds the card's annual fee for the first year.
United-Specific Benefits
Where the Explorer Card truly shines is in its array of United-specific perks:
First checked bag free: Both the primary cardmember and one companion on the same reservation can check their first bag for free on United-operated flights when the ticket is purchased with the card. This benefit alone can save up to $140 per round-trip flight for two people.
Priority boarding: Cardholders and companions on the same reservation enjoy priority boarding on United flights. This perk ensures you'll have overhead bin space and can get settled more comfortably before the main boarding rush.
25% back on United inflight purchases: Whether you're buying food, beverages, or Wi-Fi onboard, you'll receive a 25% statement credit on these purchases when using your Explorer Card.
Two one-time United Club℠ passes each year: These passes grant you access to United's airport lounges, offering a quiet space to work or relax, along with complimentary snacks and beverages. Each pass is valued at $59, providing $118 in potential value annually.
Travel Protections
The United℠ Explorer Card doesn't skimp on travel insurance benefits, offering a comprehensive suite of protections:
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Trip cancellation/interruption insurance: Reimburses up to $1,500 per person and $6,000 per trip for pre-paid, non-refundable passenger fares if your trip is canceled or cut short by covered situations like sickness or severe weather.
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Trip delay reimbursement: Provides up to $500 per ticket for reasonable expenses like meals and lodging if your travel is delayed more than 12 hours or requires an overnight stay.
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Baggage delay insurance: Reimburses up to $100 per day for three days for essential purchases when your baggage is delayed by more than six hours.
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Lost luggage reimbursement: Covers you and your immediate family members for up to $3,000 per passenger if the carrier loses or damages your bags.
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Primary auto rental collision damage waiver: Provides primary coverage for theft and collision damage for most rental cars in the U.S. and abroad, allowing you to decline the rental company's collision insurance.
These protections can potentially save you hundreds or even thousands of dollars in the event of travel disruptions or mishaps.
Additional Perks
The card rounds out its offerings with several other valuable benefits:
- Up to $120 statement credit every four years for Global Entry, NEXUS, or TSA PreCheck® application fees
- No foreign transaction fees on purchases made outside the United States
- Access to exclusive cardmember events and experiences
- Purchase protection and extended warranty coverage on eligible items
Analyzing the Value: Is It Worth the Annual Fee?
To determine if the $150 annual fee (waived for the first year) is worthwhile, let's break down the potential value of the card's key benefits:
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Free Checked Bag: If you and a companion take just one round-trip United flight per year and check bags, you'll save $140. This benefit alone nearly offsets the annual fee.
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Priority Boarding: While harder to quantify monetarily, the convenience and peace of mind of early boarding can significantly enhance your travel experience.
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United Club℠ Passes: The two annual passes are worth $118, providing a taste of lounge luxury during your travels.
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Global Entry/TSA PreCheck Credit: Amortized over four years, this benefit provides about $30 of value annually, speeding up your airport experience.
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Travel Protections: While you hope never to use them, these protections can provide significant value and peace of mind. The primary auto rental insurance alone can save you $10-$30 per day compared to purchasing coverage from the rental agency.
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No Foreign Transaction Fees: If you travel internationally, avoiding the typical 3% foreign transaction fee can add up quickly.
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Inflight Purchase Discount: The 25% statement credit on inflight purchases can provide additional savings for frequent flyers.
When you add up these benefits, it's clear that for many travelers, the United℠ Explorer Card can provide value well beyond its $150 annual fee, especially for those who fly United even a few times a year.
Maximizing Value with the United℠ Explorer Card
To get the most out of your United℠ Explorer Card, consider these strategies:
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Use it for all United purchases to earn 2X miles and activate the free checked bag benefit.
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Take advantage of the 2X miles on dining and hotel stays, especially when traveling.
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Utilize the United Club passes strategically during longer layovers or delays.
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Apply for Global Entry or TSA PreCheck using the card to receive the statement credit.
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Book rental cars with the card to activate the primary insurance coverage, potentially saving on daily insurance fees.
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Use the card for all international purchases to avoid foreign transaction fees.
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Keep an eye out for targeted offers and spending bonuses, which can boost your mile earnings.
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Leverage the United MileagePlus X app for additional earning opportunities on everyday purchases.
Who Should Get the United℠ Explorer Card?
The United℠ Explorer Card is an excellent choice for:
- Frequent United flyers who regularly check bags
- Travelers who value priority boarding and occasional lounge access
- Those who can take advantage of the Global Entry/TSA PreCheck credit
- International travelers seeking a card with no foreign transaction fees
- Anyone who appreciates comprehensive travel protections
- Those working towards United elite status, as the card helps earn Premier Qualifying Points (PQPs)
Who Should Consider Other Options?
The card may not be the best fit for:
- Infrequent travelers or those who rarely fly United
- Travelers who never check bags or don't value priority boarding
- Those seeking luxury travel perks like unlimited lounge access
- Individuals who prefer cash back to travel rewards
- Anyone unable to comfortably meet the minimum spending requirement for the sign-up bonus
Comparing the United℠ Explorer Card to Alternatives
To better understand the card's value proposition, it's helpful to compare it to some popular alternatives:
Chase Sapphire Preferred® Card
With a lower $95 annual fee, the Chase Sapphire Preferred offers more flexible rewards, including 5X points on travel purchased through Chase Ultimate Rewards®, 3X on dining, and 2X on all other travel purchases. It also provides a 25% bonus when redeeming points for travel through Chase Ultimate Rewards®. While it lacks United-specific perks, it offers more versatility in earning and redeeming rewards.
Capital One Venture Rewards Credit Card
This card, with a $95 annual fee, offers a straightforward 2X miles on all purchases and 5X miles on hotels and rental cars booked through Capital One Travel. It provides a Global Entry/TSA PreCheck credit and allows mile transfers to travel partners. It's a good option for those who want simplicity and flexibility in their rewards program.
American Express® Gold Card
With a higher $250 annual fee, the Amex Gold Card offers strong rewards on dining (4X points at restaurants worldwide) and U.S. supermarkets (4X points, up to $25,000 per year). It also provides up to $120 in dining credits and up to $120 in Uber Cash annually. While it has a higher fee and lacks United-specific perks, it offers robust everyday earning potential.
Expert Tips for United℠ Explorer Cardholders
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Pair with a flexible rewards card: Consider using the United℠ Explorer Card alongside a card like the Chase Sapphire Preferred for more earning flexibility. Use the Explorer Card for United purchases and the Sapphire Preferred for other travel and dining.
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Track your PQPs: Remember that the card helps you earn Premier Qualifying Points (PQPs) toward elite status. For every $12,000 in purchases, you can earn 500 PQP (up to 1,000 PQP in a calendar year).
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Look for targeted offers: United and Chase occasionally offer targeted spending bonuses or increased earning rates. Check your email and card account regularly for these opportunities.
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Book XN award space: United℠ Explorer cardholders have access to expanded award availability (XN fare class), potentially making it easier to book award flights.
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Leverage the United MileagePlus X app: This app allows you to earn extra miles on everyday purchases at participating merchants. Using your United℠ Explorer Card in the app can result in even higher earning rates.
Conclusion: Making the Decision
For frequent United flyers, the United℠ Explorer Card can easily provide value well beyond its $150 annual fee. The free checked bag benefit alone can offset the fee with just one round-trip flight per year. When you factor in the priority boarding, United Club passes, Global Entry/TSA PreCheck credit, and comprehensive travel protections, the card becomes even more attractive.
However, the card's true value depends on your travel habits and preferences. If you rarely fly United, don't check bags, or prefer more flexible rewards, you might be better served by a general travel rewards card.
Ultimately, if you fly United even a few times a year and can take advantage of the card's key benefits, the United℠ Explorer Card is likely worth the annual fee. Its combination of airline-specific perks and general travel benefits creates a well-rounded package that can significantly enhance your travel experience while providing solid rewards value.
Remember to regularly reassess your credit card strategy as your travel habits and financial goals evolve. What works best for you today may change in the future, so stay informed about new card offerings and be willing to adjust your wallet accordingly. By thoughtfully considering your travel patterns, spending habits, and priorities, you can make an informed decision about whether the United℠ Explorer Card is the right choice for your needs.
FAQs about the United℠ Explorer Card
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Does the free checked bag benefit apply to all travelers on my reservation?
The free checked bag benefit applies to the primary cardmember and one companion traveling on the same reservation, as long as the ticket is purchased with the United℠ Explorer Card. -
How do I receive my annual United Club passes?
The two one-time United Club passes are automatically deposited into your MileagePlus account after account opening and each card anniversary. -
Can I use the Global Entry/TSA PreCheck credit for someone else?
Yes, you can use the credit for anyone's application fee, not just your own. The credit will apply automatically when you charge the fee to your United℠ Explorer Card. -
Do I earn PQPs on all purchases with the card?
You earn 500 PQP for every $12,000 in card spend, up to 1,000 PQP per calendar year. This applies to all purchases, not just United flights. -
How does the primary auto rental collision damage waiver work?
When you decline the rental company's collision insurance and charge the entire rental cost to your card, you're covered for theft and collision damage for most rental cars in the U.S. and abroad.
By understanding these nuances and making the most of the card's benefits, you can maximize the value you receive from the United℠ Explorer Card and potentially offset its annual fee many times over.