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What are frequent flyer credit cards?
Frequent flyer credit cards give card holders a way to earn points on their everyday spending – provided it is eligible. These cards are usually linked to an airline loyalty program such as the Qantas and Velocity Frequent flyer credit cards.
Many cards also come with introductory bonus points, which could give you enough for a free flight.
You will be able to earn points on most purchases, however you will not earn points for cash advances, balance transfers, and BPAY payments. Once the points are redeemed, you can use them towards flights, flight upgrades, and even accommodation (depending on the provider).
What types of features can frequent flyer cards offer?
Most of the features you can redeem range from complimentary flight vouchers or travel credits to airline lounge passes, complimentary travel insurance, and concierge services.
Are there any traps with a frequent flyer credit card?
Frequent flyer credit cards come with many perks, but you must always keep your eyes open for the hidden traps.
- High annual fees: Most frequent flyer credit cards come with an annual fee in the range of $50 and $450. If you aren’t earning a decent amount of points throughout the year, it may not be worth your while to have one of these cards. There are some $0 annual fee frequent flyer cards available, but these don’t usually have the best rates or features attached to them.
- Promotional offers and spend requirements: To take advantage of bonus points offers, you usually need to spend a certain amount of money in a set period of time. Always make sure that this fits in with your budget.
- Higher interest rates: Frequent flyer credit cards usually have high interest rates, around 19-22%. So they are suited best to people who are able to off their credit card balance in full each month.
How many points can I earn for my spending?
There are two main factors to consider when it comes to earning points with a frequent flyer credit card:
- Earn rate: Always find out how many points you earn for each dollar spent. 1 point per $1 is considered competitive, but some can be as low as 0.5 whilst others are higher.
- Points tiers and caps: These cards have a tier system and depending on the card, the number of points may vary depending on the purchase. Some cards also cap the number of points you can earn once you reach a certain amount each statement period.
How can I get approved for a frequent flyer credit card?
You need to determine whether or not you meet the eligibility requirements to receive approval for a frequent flyer credit card.
As with most credit cards, they will request things like proof of income, Australian residency status, and credit history details. As these cards are considered premium products, you may need a higher income in order to be approved. Once you have all your documents in order, the bank will assess your details and documents to determine if you’ll be approved or not.
If you don’t always pay off the full balance on your credit card each month, you might want to consider a low rate credit card.
While you will still need to make the minimum monthly repayment, a low rate credit card can help you keep your debt under control by reducing the amount of interest you are charged on your remaining balance. They may not offer fancy rewards or perks, but they are a good option for staying on top of your finances.
Here you can compare different low rate credit cards from various banks and credit unions to find the best product for your needs.
First published in May 2025
