Frequent flyer credits cards with no annual fee

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.

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.

Ask Finder: What's the best way to use points apart from flights?

How to compare frequent flyer credit cards with no annual fee

Weigh up these features when you’re looking for a credit card that earns frequent flyer points and has no annual fee.

• Annual fee details

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.

Frequently Asked Questions

• Are there Qantas Frequent Flyer credit cards that have no annual fee?

  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.

• Can I get airport lounge access with a frequent flyer credit card that has no annual fee?

  This depends on the card you choose. If lounge passes are a priority, check you Finder's guide to credit cards that include airport lounge access to compare your options.

• Can I get a frequent flyer card that offers no annual fee in the first year and then cancel it before the annual fee is charged?

  Yes, it is possible to do this. Just make sure you pay the card off in full and cancel it before 12 months has 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.

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