These cards are your ticket to sky-high point earning potential, hefty welcome bonuses, solid ongoing earn rates, and a premium selection of travel-centric perks.
7+
Great
These cards might have slightly less impressive points earning or sign-up bonuses.
5+
Standard
Reliable workhorses for frequent flyers who want a well-balanced card. Enjoy decent point earning potential, competitive rates, and a good mix of practical perks.
0+
Basic
The entry point in the frequent flyer market. Their sign-up bonuses and ongoing earn rates might not be as generous.
How do frequent flyer credit cards with no annual fee work?
A frequent flyer credit card with no annual fee gives you a way to earn Qantas Points, Velocity Points or reward points that you can transfer to a frequent flyer program. These cards also help you save money on account costs by offering a $0 annual fee – either for the first year you have the card, or for life.
Usually you won't get as many perks (like travel insurance or lounge passes). But if you pay the card balance in full each month and make use of interest-free days, you can basically earn frequent flyer points without any extra costs on one of these credit cards.
Types of no annual fee frequent flyer credit cards offers
You can choose between a frequent flyer credit card with no annual fee in the first year or one with an ongoing $0 annual fee. Here's a look at both.
No annual fee in the first year
Some frequent flyer credit cards offer a reduced or waived annual fee in the first year you have the card, then charge an annual fee from the second year on. Depending on the card, this can save you between $50 and $700 or more, but only for the first 12 months.
These cards give you a way to test out the account and perks such as bonus point offers or complimentary lounge access. If you decide the card is worth it, you can keep it and pay the fee when it is applied. If not, you can cancel the card before the end of the first year and avoid the annual fee.
The trade-off is that you won't usually get big bonus points offers, complimentary travel insurance, lounge passes or other premium perks on these cards. But they do give you a way to earn more Qantas or Velocity Points per $1 spent without ever paying a yearly fee on your credit card.
Our expert says
"I love frequent flyer cards, but they often come with expensive annual fees. No-fee cards are an excellent way for Aussies to get a bit of value back on their spending without the burden of an annual fee."
How long will it take me to earn enough points for a reward?
The time it takes to earn enough points for a flight or other reward depends on how many points you earn per $1 spent, whether you get bonus points and the reward you want to redeem.
But as a basic guide, you'd need 7,800 Velocity Points or 8,000 Qantas Points to redeem a reward flight between Sydney and Melbourne. That means you'd need to spend around $8,000 on a frequent flyer card offering 1 point per $1 or around $16,000 on a card offering 0.5 points per $1.
Example: Earning Qantas Points with a no annual fee credit card
To give you an idea of the points potential of a frequent flyer credit card with an ongoing $0 annual fee, let's look at the Qantas American Express Discovery Card, which has the following earn rates:
0.75 Qantas Points per $1 spent on everyday purchases.
0.5 Qantas Points per $1 spent with government bodies in Australia.
1.75 Qantas Points per $1 spent on selected Qantas products and services in Australia.
Based on an average monthly credit card spend of $2,100, you would get around 1,575 points per month or 18,900 points per year from everyday spending.
In 6 months, you'd have enough points for a one-way economy flight between Sydney and Melbourne (8,000 points).
In 12 months, you'd have enough for a return flight (16,000 points) or a one-way business class flight (18,400 points) on the same route.
✈️ Keep in mind You could also save these points for higher-value rewards. And if the card came with a bonus point offer or you used it to pay for Qantas Points, it could help fast-track your frequent flyer goals.
How to compare frequent flyer credit cards with no annual fee
Before choosing one of these frequent flyer credit cards, check whether the $0 annual fee is for the first year only or an ongoing feature of the card so that you know exactly what you’re getting in the long run.
Bonus points
Many frequent flyer credit cards offer thousands of introductory bonus points when you meet the spending requirements as a new cardholder. This could give you a huge amount of value in the first year – especially without an annual fee.
Just remember that this value is temporary, so you need to think about the costs that apply beyond the first 12 months if you plan to keep the card. Also keep in mind that cards with an ongoing $0 annual fee won't typically have the biggest bonus point offers.
Points per $1 spent
The amount of points you’ll earn per $1 can help you figure out how much value you’ll get from the card based on your typical spending.
Keep in mind that although you’ll earn points for most everyday purchases, you usually won’t get any for transactions such as cash advances, BPAY payments and government charges.
Interest rates
These types of frequent flyer credit cards typically have high interest rates, which means costs will add up if you carry a balance.
You can usually avoid interest charges on purchases if you pay your balance in full each month, so check the details for interest-free days to decide if a card will work for you.
Additional cardholders
If you want to boost your frequent flyer point balance by sharing the account with a partner or family member, check whether they’ll also get the option to have a card with no annual fee.
Otherwise, you could end up paying more for the account than what you earn in points.
Complimentary extras
Weigh up the value of any perks, such as complimentary insurance, lounge passes or annual travel credit. If the card offers a $0 annual fee in the first year, also consider whether these benefits will outweigh the cost of the standard annual fee once that applies.
Is a no annual fee frequent flyer credit card right for me?
These cards are for people who want to earn frequent flyer points with a credit card but don't want to pay an annual fee. They can also be a good starting point when you are new to frequent flyer programs or credit cards because they give you a chance to test the waters without paying any upfront costs.
But if you're a big spender, a frequent flyer card with an annual fee and more points per $1 spent could give you more value than the savings you'd get from a $0 annual fee.
Finder Scores explained
9+ Excellent - These cards are your ticket to sky-high points earning potential, hefty welcome bonuses, solid ongoing earn rates, and a premium selection of travel perks.
7+ Great - These cards might have slightly less impressive points earning or sign-up bonuses than the best cards on the market.
5+ Satisfactory - Reliable workhorses for frequent flyers who want decent points earning potential and some mix of perks and benefits.
Less than 5 – Basic - the entry point in the frequent flyer market. Their sign-up bonuses and ongoing earn rates are lower.
How does the Finder Frequent Flyer Score work?
The Finder Score is an easy way you can figure out which frequent flyer credit cards are worth the trip, and which ones aren't worth getting out of bed for.
Here's how the score works:
We analyse over 250 credit cards and assess 8 features, giving a score for each one.
Then we combine these scores using a weighted methodology (because some features are more important than others).
This gives us a final score out of 10: the Finder Score.
In the frequent flyer category we only consider credit cards that:
Link to the Qantas Frequent Flyer or Virgin Australia Velocity Frequent Flyer program.
Let you earn points directly based on spending.
Are available to general consumers.
Scores are category-specific. So one credit card could receive a score of 9 in the balance transfer category but a score of 8 in the frequent flyer category.
The Finder Score methodology is designed by our insights and editorial team. Commercial partners carry no weight, and all products are reviewed objectively.
Keep in mind there is no best for everyone, and we encourage you to consider your own financial circumstances when making a financial decision.
Frequent flyer credit cards - score weightings
Feature
Definition
Assessment
Weight
Earn Rate
Points earned for every dollar spent on eligible purchases
Points awarded per dollar (up to 1.5)
28%
Sign-Up Points
Bonus points earned for signing up and meeting spending requirements
Total bonus points offered (up to 150,000)
25%
Purchase Rate
Interest rate on new purchases
Lower rates receive higher scores (up to 23.99% max)
If you’re interested in a frequent flyer credit card with no annual fee, start by comparing different options currently on the market. You can also compare a wider range of frequent flyer credit cards if points are your priority, or look at other no annual fee cards if your goal is to save on account costs.
Frequently Asked Questions
Yes, the Qantas American Express Discovery Card and the BankVic Qantas Visa Credit Card both earn Qantas Points and have a $0 annual fee for life. You can also compare current introductory offers to see which Qantas Frequent Flyer credit cards offer a waived or reduced annual fee in the first year.
Yes, it is possible to do this. Just make sure you pay the card off in full and cancel it before 12 months have passed. You may even want to call the provider and check what date the annual fee will be charged so that you can be sure you close the account before then.
Images: Shutterstock. Icons made by Linector, Flat Icons, Freepik.
Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio
Amy's expertise
Amy has written 566 Finder guides across topics including:
Earn KrisFlyer miles on your everyday spending and get introductory bonus points with a credit card linked to the Singapore Airlines frequent flyer program.
Find out if there are any credit card offers that let you earn Qantas Frequent Flyer Status for your eligible spending and learn more about how to reach Silver, Gold or Platinum Qantas status.
From flights and hotel stays to travel packages, gift cards and merchandise, here’s how to make the most of 100,000 Velocity Points based on your lifestyle and goals.
I was going to apply for the new Qantas Premium Credit card but I need to have a Frequent Flyer card first, is that right?
Finder
DeeAugust 16, 2017Finder
Hi John,
Thanks for your question.
You can apply for this card even if you are not yet a member of the Qantas frequent flyer program. However, to receive points, you need to sign up for Qantas membership.
Cheers,
Anndy
EileenApril 22, 2016
Are there credit cards that are better to use when travelling? I used a credit card when I travelled previously and found the costs quite high.
Finder
YsaApril 23, 2016Finder
Hi Eileen,
Thanks for your question and for getting in touch with Finder.
If you are considering other credit card options for your next trip, please refer to our Travel Money Credit Cards page.
I hope this helps.
Cheers,
Ysa
steveFebruary 3, 2015
Hi, which frequent flyer card allows use of airline lounges? as well as accumulating points. Or is a different program (card) REQUIRED. Thanks Steve
Finder
JonathanFebruary 4, 2015Finder
Hi Steve,
Thanks for your inquiry.
Please see a list of credit cards which include free airline lounge access. You may also refer to a list of Frequent Flyer cards and other airline rewards. The airline lounges’ benefits will vary from card to card, generally possessing higher annual fees for the benefits.
I hope this has helped.
Cheers,
Jonathan
MFebruary 18, 2014
My husband & I are on the aged pension so our income is under $35,000. We pay the majority of our bills on our ANZ QFF Visa card & pay the full balance each month so do not attract interest.
How can we switch to another card eg. Virgin which may be may be of more benefit to us?
Finder
JacobFebruary 18, 2014Finder
Hi M,
Thanks for your question.
You can use our credit card comparison page for a range of credit cards that may be suited to your needs. If you would like to change your current credit card to another provider, you can close your existing account. You can call your card issuer and let them know you would like to close the account once it has been paid in full. Then apply for another card through the application links provided on our credit card review pages. If you have a balance on your current card, you can apply to transfer this balance to your new card under a balance transfer promotion.
I hope this has answered your question.
Cheers,
Jacob
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No annual fee in the first year
No annual fee for life
I was going to apply for the new Qantas Premium Credit card but I need to have a Frequent Flyer card first, is that right?
Hi John,
Thanks for your question.
You can apply for this card even if you are not yet a member of the Qantas frequent flyer program. However, to receive points, you need to sign up for Qantas membership.
Cheers,
Anndy
Are there credit cards that are better to use when travelling? I used a credit card when I travelled previously and found the costs quite high.
Hi Eileen,
Thanks for your question and for getting in touch with Finder.
If you are considering other credit card options for your next trip, please refer to our Travel Money Credit Cards page.
I hope this helps.
Cheers,
Ysa
Hi, which frequent flyer card allows use of airline lounges? as well as accumulating points. Or is a different program (card) REQUIRED. Thanks Steve
Hi Steve,
Thanks for your inquiry.
Please see a list of credit cards which include free airline lounge access. You may also refer to a list of Frequent Flyer cards and other airline rewards. The airline lounges’ benefits will vary from card to card, generally possessing higher annual fees for the benefits.
I hope this has helped.
Cheers,
Jonathan
My husband & I are on the aged pension so our income is under $35,000. We pay the majority of our bills on our ANZ QFF Visa card & pay the full balance each month so do not attract interest.
How can we switch to another card eg. Virgin which may be may be of more benefit to us?
Hi M,
Thanks for your question.
You can use our credit card comparison page for a range of credit cards that may be suited to your needs. If you would like to change your current credit card to another provider, you can close your existing account. You can call your card issuer and let them know you would like to close the account once it has been paid in full. Then apply for another card through the application links provided on our credit card review pages. If you have a balance on your current card, you can apply to transfer this balance to your new card under a balance transfer promotion.
I hope this has answered your question.
Cheers,
Jacob