Frequent flyer credit cards

Get big bonus points offers, flights, upgrades, lounge access and more when you spend with a frequent flyer credit card.

Qantas Money Credit Card Offer

Qantas Premier Everyday

Receive up to 40,000 bonus Qantas Points

Offer ends 31 October 2018

Eligibility criteria, terms and conditions, fees and charges apply

Qantas Money Credit Card Offer

A frequent flyer card that features bonus points, a first year annual fee waiver and complimentary insurance covers.

• $0 p.a. annual fee for the first year ($49 p.a. thereafter).
• 19.99% p.a. on purchases
• Cash advance rate of 21.99% p.a.
• Up to 55 days interest free
• Minimum income requirement of $35,000 p.a.

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Compare Frequent Flyer Credit Cards

If you want to find the most rewarding card to earn points for every $1 you spend, you can use this guide to compare frequent flyer credit cards based on bonus points offers, rewards programs, points per dollar and the costs that apply. You can also find out if frequent flyer credit cards are worth it, discover the traps you should look out for and get answers to the most frequently asked questions about earning points with your credit card.

Best frequent flyer credit cards* – trending now

Compare these frequent flyer credit cards in Australia to decide if one is right for you:

• American Express Westpac Altitude Platinum Bundle. This card earns up to 75,000 bonus Altitude Points when you meet the spend criteria.
• HSBC Platinum Qantas. A platinum card with 60,000 bonus Qantas Points and complimentary international travel insurance.
• Virgin Australia Velocity Flyer - Bonus Points. Receive up to 60,000 bonus Velocity Points and a reduced $64 annual fee in the first year.
• American Express Qantas Discovery. Get a 0% p.a. balance transfer offer for 12 months and a $0 annual fee for life.

• * Disclaimer

  *The best credit card for you will depend on a variety of factors. The use of the terms "Best" and "Top" are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products. Products are displayed in no particular order or ranking.

Video: How to get bonus points

• Video Transcript

  G'day, I'm Angus Kidman from finder and I'm here to talk to you about frequent flyer credit card bonus points offers.

  These are the offers that you see where it says "hey sign up for this credit card and we'll give you 100,000 bonus frequent flyer points" and that's a really tempting offer. You know, that many points could get you on a return trip to London.

  And this can be a great way to top up your reward point balance, but you do have to be aware of the traps. Now the biggest trap is this: very often these cards will have some kind of spend requirement where you have to spend a certain amount of money within a given period of time in order to qualify for the full set of points.

  So let's say that I saw an offer that promised 50,000 Qantas Frequent Flyer reward points. Great I think, but then when I actually look at the conditions, it turns out that I have to spend $5,000 on that card within the first three months in order to get those bonus points.

  Now you probably could do that with your everyday spending, but there's something else you need to be aware of and that's that you can only spend on what are known as eligible transactions.

  So normal regular purchases like groceries or petrol or Hawaiian shirts are totally covered by that, but there are some things that aren't. Usually, you'll find that payments to BPAY, payments to the ATO or cash advances will not be included as eligible transactions, so make sure you're aware of what the rules are and what the time period is where you have to make those purchases.

  Every single card is going to have a slightly different kind of offer, so it's really important to understand all the details before you sign up for it.

  Now if you compare frequent flyer credit cards at finder, as well as showing you all those terms and conditions, we'll also tell you about the key features of the card – things like the annual fee and the interest rate on purchases. And that way, you can pick a card that not only helps you maximise your points total but is also a great card for everyday spending.

Types of frequent flyer credit cards

• I want to earn Qantas Points
• I want to earn Velocity Frequent Flyer Points
• I want a frequent flyer credit card with no annual fee
• I want a frequent flyer credit card with no foreign transaction fees
• I want a frequent flyer credit card for my business spending
• I want a frequent flyer card with airport lounge passes or travel credit

Are frequent flyer credit cards worth it?

A frequent flyer credit card can be a great way to reward your spending with points, but they usually come at the cost of high annual fees and interest rates. Before you apply, you can decide if a card is worth it based on the bonus points offer, how many points you’ll earn per $1 as well as extra features (such as airline lounge passes or travel credits) compared to the annual fees. The value of these rewards and extra perks should exceed the cost.

Let’s look at the American Express Qantas Ultimate card as an example. This card currently offers 55,000 bonus Qantas Points when cardholders spend $3,000 in the first three months. You’ll also get a $450 travel credit which offsets the $450 annual fee. You can can use the travel credit to book eligible Qantas flights through the American Express Travel website.

The card also offers 1.5 points per $1 on eligible Australian purchases. You can also travel in style with two entries to the American Express Lounges at Sydney or Melbourne airport and two complimentary Qantas Club lounge invitations each year.

This is an example where the extra perks like the travel credit and airline lounge passes outweigh the annual fee and the earn rates can reward your spending. However, as this card comes with a high purchase interest rate, it would only be worth it if you were paying off your balance in full each month and paying no interest.

What are my frequent flyer points worth?

The dollar value of your frequent flyer points will vary depending on what you redeem your points for, but here’s an illustration to show how far your points can take you.

Let’s look at where you could travel with a credit card with 100,000 bonus points. For example, it would cost 90,000 Qantas Points or 89,600 Velocity Points to fly return in economy from Melbourne to Los Angeles. Neither of these examples account for the extra taxes and fees but let’s look at how much these flights would usually cost in cash.

The cost of a flight will vary depending on the time and date of the booking, but economy return Qantas flights from Melbourne to Los Angeles can start at $1,099 at the time of writing. This means that one Qantas Point is roughly worth 0.81 cents if you use them to redeem this flight. You can find return economy Virgin Australia flights from Melbourne to Los Angeles for around the same price, so you can expect roughly the same value of points for this reward flight.

To get the most value from your frequent flyer points, compare a few options and redeem the one that offers the highest dollar value for your points.

What’s the catch with a frequent flyer credit card?

Frequent flyer credit cards have their perks, but these are the traps you should watch out for:

• High annual fee. Most frequent flyer credit cards come with a hefty annual fee that can range between $50 and $450. You need to make sure that the yearly value of the reward and extra perks of the card can outbalance these fees. There are $0 annual fee frequent flyer cards on the market, but these usually come with less competitive rewards offers and extra features.
• Promotional offers/spend requirements. You usually need to spend a specific amount in a set period (such as $4,000 in the first 90 days) to take advantage of bonus points offers. Before you’re enticed by the idea of thousands of bonus points, make sure that these spend requirements aligns with your budget and that you can still afford to pay it off in full.
• Higher interest rates. Frequent flyer credit cards usually have high purchase interest rates between 19% and 22%, so these cards are best suited to cardholders who can pay off their balance in full each month. Otherwise, the interest you’ll collect could easily outweigh the value of the rewards.
• Temptation to spend. If you do struggle to stick to a budget and pay your balance in full each month, the promise of frequent flyer points could tempt you to overspend. If this is the case, you might want to consider a low interest rate credit card instead.

How can I compare and find the best frequent flyer credit card for me?

You should ask yourself the following questions before deciding which frequent flyer credit card is right for you:

• Which frequent flyer program do I belong to?

In Australia, most frequent flyer credit cards are linked to either the Qantas or Virgin Australia Velocity Frequent Flyer programs. However, if you belong to other frequent flyer programs (such as Singapore Airlines KrisFlyer, Air New Zealand Airpoints, Emirates Skywards or Etihad Guest), you could also consider a rewards credit card that allows you to transfer your credit card reward points to a number of partnered frequent flyer programs.

• How many bonus points can I get?

Introductory bonus points offers generally vary between 20,000 and 100,000 points (or more!). You can also judge how much value you can get from the bonus points based on the reward you can redeem as well as the spend requirements to get it. For example, let’s say you have to spend $4,000 in 60 days to get 100,000 bonus Qantas Points. That boils down to roughly 25 Qantas Points per $1 spent. You can redeem 100,000 Qantas Points for a return economy or one way business class flight overseas, so that could help you justify the spend to get the points.

• How many points can I earn for my spending?

Earn rate. As well as the bonus points offer, you should also compare how many points you can earn per $1 spent. These earn rates can be as low as 0.5 points per $1, but 1 point per $1 (or higher) is considered competitive.

Points tiers and caps. Depending on the card, the number of points may vary depending on the purchase. For example, you may earn 0.75 points per $1 spent in Australia, 1 point per $1 spent on foreign transactions and an additional point when per $1 spent with a partnered airline. So if you regularly travel overseas or shop with international merchants, a card with a higher earn rate on foreign transactions could boost your rewards. Some cards also cap or reduce the number of points you can earn after you reach a spend threshold each statement period. For example, you may earn 1 point per $1 up to $10,000 per statement period and either a reduced earn rate or no more points until the next statement period. If the card does have a points cap, consider how much you spend each month and opt for a card with a higher or no points cap if you spend more than the threshold. Otherwise you’ll restrict your points potential.

• How much is the annual fee?

Although some frequent flyer cards come with $0 annual fee for the first year or for life, others charge fees that can set you back tens or hundreds of dollars. You can justify paying an annual fee if the yearly value of the rewards you’re redeeming and extra features you’re taking advantage of (such as travel credits, complimentary flights and airline lounge passes) outweigh this fee.

• What type of card is it?

In Australia, most frequent flyer credit cards are a Visa, Mastercard or American Express. While Visa and Mastercard are accepted more widely, you’ll usually find that Amex cards often offer better points earn rates.

• Are there extra features?

Most frequent flyer credit cards come with extra features that can help you get more value from your card. These can range from complimentary flight vouchers, travel credits and airline lounge passes to complimentary travel insurance and concierge services. Make sure you compare the extra features and determine whether you would actually use them before you apply for the card.

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Frequent flyer credit cards can reward you for every $1 you spend on plastic. Plus, the extra perks can help you offset some of the weighty annual fees. As there are a bunch of competitive frequent flyer credit cards on the market, get started by comparing your options now so you can find the most rewarding one for you.

Want to stay on top of the latest frequent flyer deals? Visit Points Finder for all of the latest news, offers and reviews.

Frequently asked questions

• How can I get approved for a frequent flyer credit card?

  Like all credit cards, you’ll need to meet eligibility requirements to receive approval for a frequent flyer credit card. The application criteria could include a minimum annual income amount, Australian residency status and credit history details. However, as these are premium products, you may find that some of frequent flyer cards have higher income requirements than other options.

  If you’re eligible to apply, you’ll also be required to provide documents including payslips and proof of identification. The bank will then assess the details and documents you provide to determine if you’ll receive approval or not.

• Who are frequent flyer credit cards best suited to?

  Frequent flyer credit cards are designed to suit regular spenders who usually pay their balance in full each statement period. This is because you’ll earn more points based on how much you spend, but your rewards won’t be outweighed by interest if you clear your balance each month.

  They’re also designed to benefit frequent travellers who will make use of the extra features such as airline lounge passes, complimentary travel insurance and travel credits.

• How much does it cost to join a frequent flyer program?

  Most frequent flyer programs are free to join, although Qantas Frequent Flyer has a one-time $89.50 joining fee. However, you can check out our guide to joining the Qantas Frequent Flyer program for free to save on this fee.

Questions about earning frequent flyer points

• What credit card transactions and purchases don't earn points?

  You can usually only earn points on what your bank considers an eligible transaction. This usually includes everyday spend at the grocery store, on travel bookings and more. You usually can’t earn points on gambling transactions, cash advances, balance transfers and sometimes government transactions.

  Read your credit card product disclosure statement for a complete list of the transactions you can and can’t earn points on.

• Can I earn points on payments to the ATO?

  Most Australian banks consider government transactions (such as ATO bills) ineligible to earn points. Currently, most of the cards that allow you to earn points on ATO bills and government transactions are issued by American Express. You can compare cards that earn points on tax bills and government transactions on finder.

• Can I earn Status Credits with a frequent flyer credit card?

  Although some credit cards have offered status credit promotions in the past, no credit cards currently allow cardholders to earn status credits on purchases. Instead, you can earn status credits when you take an eligible flight. Unlike points, you can use status credits to move up the status tiers of your frequent flyer program. The benefits vary between different programs and tiers, but you can usually expect perks such as more competitive earn rates, lounge passes and priority check in as you ascend the status levels.

  Check out our guide to Qantas and Velocity status tiers for more information.

Questions about redeeming frequent flyer points

• How can I redeem my frequent flyer points?

  When you earn frequent flyer points with your credit card, they’re debited to your linked frequent flyer account. To redeem your points, log in to your frequent flyer account and follow the prompts to redeem your rewards.

• Can I transfer points to another program?

  You can often transfer credit card rewards (such as American Express Membership Rewards or St.George Amplify Rewards) to frequent flyer programs, but you can’t usually transfer frequent flyer points between programs. Singapore Airlines KrisFlyer and Virgin Australia’s Velocity are one exception to this rule.

  Even if you can’t transfer your frequent flyer points to another program, you can use your frequent flyer points to redeem flight rewards with a partnered airline. For example, Qantas belongs to the oneworld Alliance, so you can use your Qantas Points to redeem flight rewards with British Airways, American Airlines, Cathay Pacific and more.

• How many points do I need to fly from A to B?

  The number of points you’ll need will vary depending on details including the location of your departure and destination as well as the fare class for your booking. You can usually find out how many points you’ll need using a points calculator on your preferred airline’s website.

  You can also use finder’s guide to how to use points to fly overseas to discover how many points you’ll need to fly to popular Aussie tourist destinations including the US, UK, China, New Zealand, Indonesia and Thailand.

• Will I lose my points after I close my credit card account?

  No, but it can sometimes take a few weeks for the frequent flyer points to appear in your account. Make sure the points have moved across to your frequent flyer account before you close your card.

• How much are my points worth?

  The value of your points will vary depending on your program and the reward you’re redeeming. Generally, redeeming your points for flights and upgrades offers the best value.

  Let’s look at Qantas Frequent Flyer as an example. At the time of writing, you can redeem a $250 David Jones gift card for 41,250 points from the Qantas Store. Meanwhile, you could redeem a business class flight from Sydney to Auckland for 36,000 points (RRP starting at $858 at the time of writing) or a one-way economy flight from Sydney to Johannesburg for 40,000 points (or RRP approximately starting at $691 at the time of writing).

  As you can see, both of these flights require fewer points but offer better monetary value than the $250 gift card. With this in mind, make sure to compare the monetary value of what you can redeem with your points before you cash them in. See our guide to how much is 1 Qantas Point worth for more examples.

• Are all frequent flyer points worth the same amount?

  No, frequent flyer points are worth different amounts across programs. At the time of writing, you can redeem a $100 Westfield voucher for 24,850 Qantas Points or 18,000 Velocity Points. So in this example, you’ll get more value if you redeemed your Velocity Points for the $100 gift card.

• What rewards can I redeem?

  This will vary from program to program, but you can usually redeem your points for the following types of rewards:

  • Flights
  • Flight upgrades
  • Accommodation
  • Car rental
  • Travel packages

  • Gift cards
  • Merchandise from the frequent flyer online store including electronics, homewares, fashion and more
  • Cashback

The offers compared on this page are chosen from a range of products finder.com.au has access to and are not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of the terms "popular", "best" and "top" are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.
Last updated: 18 September 2018

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