Compare Frequent Flyer Credit Cards - Australia

Being rewarded for shopping with someone else’s money. It sounds like a great deal at first glance, doesn’t it? If only it didn’t need to be paid back! And what if you could even earn enough frequent flyer points via the money you spend and use those points to go on a really wonderful holiday?

But there are so many reward card options to consider. How on Earth are you meant to compare frequent flyer credit cards and then choose one that’s suitable? We get it. Picking credit cards can be complicated. But it shouldn’t have to be.

That’s why we’ve put together a series of guides designed to help you easily compare credit card options. This one is focused specifically on frequent flyer credit cards, and you’ll find complementary information at our main credit card comparison hub.

Here we aim to provide you with information to help you decide if this kind of credit card is right for you. And when the time comes for you to compare frequent flyer credit cards, you’ll have a good idea of what to look for and what everything means.

Frequent flyer credit cards are a type of rewards credit card. They allow you to earn frequent flyer points when you buy products and services and then you can trade the points in for flights, flight upgrades, gift cards, hotel stays, other airline purchases and more. Some also provide extra perks, like access to airport lounges and complimentary insurances.

Frequent flyer credit cards work in much the same ways as other rewards cards, or indeed, any other kind of credit card. You may be approved to spend a certain amount of credit, and would then have to pay interest on credit you use if you don’t repay the funds by the due date. As to the rewards part, you’ll earn points for each dollar you spend on eligible products and services.

Most rewards cards and frequent flyer credit cards are likely to give you points when you buy everyday products and services and may reward you with bonus points when you shop with an airline.

In general, you won’t earn rewards if you take out a cash advance. Depending on the exact frequent flyer card you get, government transactions and gambling may not earn you points either.

As we noted above, you can generally redeem points for a whole host of things including flights, flight upgrades and other airline purchases. But that doesn’t mean you can trade your points in for whatever you want. Most programs will restrict the types of products and services you can buy with your points. For example, some airlines may only allow you to buy specific seats or upgrades with points.

Frequent flyer credit cards may also pair well with certain retail loyalty cards. For example, if you have a Coles loyalty card, you may be able to trade Flybuys points for Velocity frequent flyer points. If you have a Woolworths Rewards card, you could trade your Woolworths points for Qantas frequent flyer points.

Most frequent flyer credit cards are linked to a specific airline’s rewards program, and some programs charge a membership fee. So, it’s usually best to open up a frequent flyer credit card that corresponds with whichever airline you most often travel with.

To provide more of a deep-dive into how frequent flyer programs may work, as an example, here’s a little more information on the Qantas program.

You probably know Qantas is one of the largest airlines in Australia. But you may not know it was founded in 1921, making it the world’s third-oldest airline. As a result, it’s earned a reputation for being safe and reliable, worldwide. This means Qantas points are coveted because many people are interested in flying Qantas, especially if they don’t have to pay for their flights.

You can also earn and redeem points on some Jetstar flights and with more than fifty other airlines. Plus, Qantas doesn’t restrict the kind of ticket you buy with your points, and it generally doesn’t restrict the section of the plane that you can book seats in.

Another perk of the Qantas program is that you can earn Qantas points and then gift them to your family and friends if you don’t think you’ll use them or if they’re buying flights a while before you’re going to buy some.

The Qantas rewards program has five membership tiers:

• Bronze
• Silver
• Gold
• Platinum
• Platinum one

Each year, you start off in the bronze tier and have the opportunity to progress through the tiers by earning status credits as a result of flying with Qantas and its preferred partner airlines. Each tier grants various bonuses such as extra checked baggage and use of the business class check-in counter even if you’re not travelling business class.

A variety of frequent flyer credit cards reward purchases with Qantas points, and some will even give you a free Qantas membership.

When looking at frequent flyer credit cards, you might notice many advertise an introductory offer (all kinds of credit cards can offer introductory deals, but it seems they’re particularly popular with frequent flyer cards). Introductory offers are benefits you can only access for a specific period of time when you first sign up for the card. They’re designed to entice you to get the credit card but can sometimes be a bit of a trap.

We say that not to turn you off the idea of applying for a frequent flyer credit card that comes with an introductory offer. We point this out only because it’s important you don’t just assess cards on how good they are during the introductory period.

As an example, some cards will waive their annual fee for the first 12 months after you sign up. People who don’t research such cards properly sometimes don’t realise how much the annual fee will be when the 12 months is up. And by the time 12 months rolls around, they may even have forgotten all about the annual fee. This could be quite a shock when the first bill arrives with the annual fee listed.

That’s one reason why it's crucial you read closely the terms and conditions of any cards you consider.

As another example, a frequent flyer rewards card connected with Qantas might give 70,000 bonus Qantas points, or even 120,000 bonus Qantas points, when you sign up. These kinds of introductory offers can encourage you to sign up for the credit card.

Introductory offers can be a wide range of things, from fee waivers and bonus points, like in the examples above, to interest-free periods and low interest rates.

Our main credit card comparison hub has some great tips to help compare that’s highly relevant to frequent flyer credit cards. Combining it with these card-specific questions, could make it easier for you to compare frequent flyer credit cards.

• What are the eligible purchases for the card? Some frequent flyer cards will reward your regular shopping with points. Some may only give points when you pay for flights. This can impact on the value you can derive from the card.
• How frequently do you fly? If you only fly a couple of times a year, it may be that frequent flyer credit card fees outweigh the benefits you could earn even if you make all your purchases on your card. On the other hand, if you fly every month, you might find a card that only gives points on flight purchases could be very valuable.
• Which airline do you prefer? Many frequent flyer programs are connected with one or several particular airlines, but some are more generic. If you can’t spend the reward points you earn with your preferred airline, the card may not be best for you.
• Who pays for your flights? If work pays for a lot of your flights, be sure to separate your personal and work flights when you’re assessing whether you can benefit from any given card.

There’s no best frequent flyer credit card, just as there’s no best credit card in any other category. But some cards may be suitable for your needs, whereas many may not be. This article provides you with some basics of frequent flyer credit cards, so you can confidently compare a range of options and choose one that suits your spending habits and circumstances.

Do be sure to check the terms and conditions before you apply, as that’s the only way to get information specific to each card you’re considering.