Get big bonus points offers, flights, upgrades, lounge access and more when you spend with a frequent flyer credit card.
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.
Exclusive to finder.com.au - Westpac Credit Card Offer
American Express Westpac Altitude Platinum Bundle - Qantas - Exclusive Offer
Up to 90,000 bonus Qantas Points on eligible spend
$50 annual fee for the first year
Offer ends 31 July 2018
Eligibility criteria, terms and conditions, fees and charges apply
Exclusive to finder.com.au - Westpac Credit Card Offer
Exclusive to finder, receive up to 90,000 bonus Qantas Points (75,000 on Visa and 15,000 on Amex) when you meet the spend criteria and save with a reduced annual fee of $50 in the first year.
- $50 p.a. annual fee for the first year ($249 p.a. thereafter).
- 20.24% p.a. on purchases
- Cash advance rate of 20.74% p.a.
- Up to 45 days interest free
- Minimum income requirement of $50,000 p.a.
Compare Frequent Flyer Credit Cards
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 Qantas Bundle. A finder exclusive that earns up to 90,000 bonus Qantas 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.
How do frequent flyer credit cards work?
You can use a frequent flyer credit card to earn points on everyday, eligible purchases. These cards are linked to an airline loyalty program (such as Qantas Frequent Flyer or Velocity Frequent Flyer) and offer a set number of points per $1 you spend (such as one point per $1 spent). Many cards also come with thousands of introductory bonus points, which can give your rewards balance a quick boost.
With a frequent flyer credit card, you’ll earn points on most everyday purchases, although transactions that aren’t eligible for points usually include cash advances, balance transfers and BPAY payments. Once you’ve earned enough points, you can redeem your points for flights, flight upgrades, accommodation and more.
Video: How to get bonus points
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.
What if I'm a member of several frequent flyer programs?
If you belong to more than one frequent flyer program, you could also consider a rewards card that’s linked with a bank loyalty program. These cards offer you points that you can transfer to partnered frequent flyer programs. For example, if you have an American Express card, you can exchange your Membership Rewards for points with Singapore Airlines KrisFlyer, Etihad Guest or Velocity. However, when you convert the points to frequent flyer points, you usually get a lower rate per $1 spent compared to what you'd earn with a frequent flyer credit card.
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.
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
Questions about earning frequent flyer points
Questions about redeeming frequent flyer points
Pictures: Shutterstock
Can you please advise when the 100,000 bonus points awarded to those who open a Qantas American Express Ultimate Card are awarded? Are they applied as soon as the $3000 spend limit applies – perhaps after two months? – or only after the three months limit has passed?
Hi Kate,
Thank you for getting in touch with finder.
Points are typically credited in 2 weeks, but can take up to 8 after the spend criteria is met.
I hope this helps.
Have a great day!
Cheers,
Jeni
You forgot to mention the Qantas Cash Mastercard. The best!
Hi Beth,
Thanks for this info.
Yes, Qantas Prepaid Frequent Flyer Card with Qantas Cash is also featured on our finder site. You may go to this page for more information.
Best regards,
Rench
Can you please direct me towards cards that do not have a low cap. Already have an Amex but looking for a Visa card to gain maximum qantas points spending over $30000 a month.
Hi Jo,
Thanks for reaching out.
The credit cards with uncapped frequent flyer points are listed here. Please note though some of the cards do not directly earn frequent flyer points as you spend, their rewards points can be transferred to the frequent flyer program they are a partner with.
Cheers,
May
Hi, i heard westpac offers 100.000 bonus points for balance transfer than can be used towards qantas frequent flyer. Is that right?
Hi MyViaCe,
Thanks for your question.
Unfortunately, you can’t transfer your Westpac Altitude Rewards to Qantas frequent flyer program, but you can to Air New Zealand Airpoints, Cathay Pacific Asia Miles, Malaysia Airlines Enrich, Singapore Airlines KrisFlyer and Virgin Australia Velocity.
You can check the points conversion rate here.
Cheers,
Anndy
HI
I want to get a credit card to pay all bills and outgoings but want one with all the benefits.
Can you tell me if you earn points when paying utility, rates etc bills? or is just on purchases of products that qualify?
Hi Andrea,
Thanks for your question.
If you are looking for a credit card that lets you earn Frequent Flyer rewards or points when you pay bills, you can check this page for credit card providers that allow that. Once you have selected a provider, you can then proceed to choosing a credit card they offer that has the features or benefits you are looking for.
You may also want to check our guide on how to earn frequent flyer points on utilities.
Cheers,
Anndy
Hi,
For ANZ Frequent Flyer Credit Card – car insurance included local as well or only for use in overseas?
Thanks.
Hi Roy,
Thanks for your question.
Unfortunately, with ANZ Frequent Flyer Credit Card, the complimentary travel insurance is not one of its benefits. But ANZ premium cards do have complimentary travel insurance and it includes rental vehicle excess cover which is for overseas trips only. Please refer to this page that details the ANZ complimentary travel insurance.
Hope this helps.
Cheers,
May
Hi Finder,
I am looking for a credit card that gives me complimentary travel insurance. However the ones I have looked in to do not cover me for places where the govt has advised to ‘reconsider your need for travel’. I want to travel to places like Ethiopia but it falls under that category so I wouldn’t be covered. Do you know any credit cards that offer really good quality travel insurance that would cover me for places like that?
Thanks so much for your help!
Tom
Hi Tom,
Thanks for your inquiry.
Please note that you’ve come through finder.com.au, an online comparison service and is not in the position to recommend specific providers, products or services.
You may refer to our comparison page for credit cards that offer free travel insurance.
If you are after for a more comprehensive travel insurance, you can review standalone policies from Australian Travel Insurance Companies from this page.
I hope this helps.
Cheers,
Debbie
Hi Debbie,
Thanks for your help! I will check out those links now.
Cheers
Tom
No worries Tom. Just let us know we can assist you further. Thanks!
hi guys
just wanted to ask
how i could get a Frequent flyer Velocity Promo Code
thank you v much
Cheers,
Hi Chandy,
Thank you for your inquiry.
Please note that you’ve come through finder.com.au, an online comparison service and is not in the position to recommend specific providers, products or services.
Please refer to link I’ve sent in your email for the list of special offers from Velocity. You can also check this page for a list of latest Velocity promo codes from Virgin Australia.
I hope this helps.
Cheers,
Debbie
how often do I pay ,is it annually or monthly
if monthly I will cancel,please advice before I make my next payment on my a/e account
Hi Brian, thanks for your inquiry!
Generally credit card repayments are monthly. To allow us to assist you further could you specify which credit card you are using?
Cheers,
Jonathan
Is there a FF CC that can be used with any airline?
thanks
Robyn
Hi Robyn, thanks for your inquiry!
Most credit cards have a partnership with one or a few airlines/ frequent flyer programs. You may like to review the Oneworld Alliance program which combines the benefits of multiple airlines.
Cheers,
Jonathan