Frequent flyer credit cards

Best frequent flyer credit cards for July

The best frequent flyer credit card is different for everyone, so we've looked at different Qantas, Velocity and flexible reward cards to pick out 3 popular offers based on bonus points, points earned per $1 and travel perks.

• Qantas
• Velocity
• Rewards

Qantas Premier Platinum Mastercard

What we like about it:

• The Qantas Premier Platinum offers up to 80,000 bonus Qantas Points for new cardholders when you meet certain conditions
• Earn 1 Qantas Point per $1 spent on eligible Australian purchases up to $10,000, then 0.5 points per $1 spent. You can also earn 1.5 points per $ spent on overseas purchases.
• If you apply by 29 November 2023 there is a discounted first-year annual fee of $349 ($399 p.a. after that)
• Complimentary travel insurance and airline lounge passes
• Balance transfer offer of 0% p.a. for 12 months (reverts to 21.99% p.a.)

Annual fee and purchase rate

• $349 p.a. annual fee in the first year ($399 p.a. after that)
• 19.99% p.a. interest rate for purchases

Go to Site

American Express Velocity Platinum

What we like about it:

• Offers 60,000 bonus Velocity Points for new Amex card members.
• Has the highest direct earn rate currently offered on a Velocity credit card, at 1.25 Velocity Points per $1 on everyday purchases.
• Offers 1 additional point per $1 for eligible Virgin Australia spending, meaning you can earn up to 2.25 Velocity Points per $1 with this card.
• Other travel perks include a return domestic flight with Virgin Australia each year, lounge passes, complimentary travel insurance and bonus Velocity Status Credits if you spend $50k in a year.

Annual fee and purchase rate:

• $375 p.a. annual fee
• 23.99% p.a. interest rate for purchases

Go to Site

ANZ Rewards Black Credit Card

What we like about it:

• The ANZ Rewards Black Credit Card has a 180,000 bonus points and $150 back offer for new cardholders right now.
• Earns 2 ANZ Reward Points per $1 spent on eligible purchases up to $5,000 per statement period, then $1 point per $1.
• Also offers complimentary international travel insurance, purchase protection insurance covers and extended warranty insurance.

Annual fee and purchase rate

• $375 annual fee
• 20.24% p.a. interest rate on purchases

Read review

• How we chose these cards

  When choosing the top frequent flyer credit cards, we considered factors including introductory offer value (bonus points, cashback or gift vouchers) and the spend requirement to get it, points earned per $1 spent, what rewards can be redeemed and the annual fee. While additional perks like insurance covers were also included, the combination of the introductory offer value and earn rate was the primary deciding factor.

What's the catch?
Frequent flyer credit cards offer a lot of value when it comes to travel rewards and perks. But most of them have high annual fees and interest rates. If you usually carry a balance or don't spend much with a credit card, the points and perks probably won't outweigh the card costs.

How do frequent flyer credit cards work?

You can use a frequent flyer credit card just like any regular credit card, but it's linked to your frequent flyer account. So every time you make a purchase with the card, you earn points – usually between 0.5 and 1.25 per $1 spent.

Many cards also come with introductory bonus points, which can give you enough for a free flight. These offers are a popular way to get value from a frequent flyer card in a short amount of time. You can also get value each year with perks like lounge passes, complimentary insurance and travel credit.

Types of frequent flyer credit cards

Tip: If you want KrisFlyer Miles, Emirates Skywards Miles or points through another frequent flyer program, check out rewards credit cards with points you can transfer.

Pros and cons of frequent flyer credit cards

How do I find the best frequent flyer credit card for me? 3 questions to ask

Rates and fees aside, here are the key questions you can ask to choose a frequent flyer credit card.

• How many bonus points can I get?

Introductory bonus point offers vary between 10,000 and 150,000 points on cards for personal spending (as opposed to business frequent flyer cards). You'll have to meet a spend requirement to get them, so make sure to check that before you apply.

For example, if an offer requires you to spend $4,000 in the first 60 days and you aren't sure you'll spend that much, it's worth looking at other offers. Or, planning how you'll meet the spend requirement and manage the repayments.

• How many points can I earn for my spending?

Bonus points offer the biggest value on a frequent flyer credit card but the points you earn per $1 spent also add up over time. A card that earns 1 frequent flyer point per $1 (or more) is competitive, but check if there is a cap on how many points you can earn at that rate.

If you get a rewards credit card that offers point transfers, 1 reward point will usually give you between 0.25 and 0.5 frequent flyer points. So a card that offers at least 2 rewards points per $1 is competitive.

• Are there extra features?

A lot of frequent flyer credit cards offer travel extras, including complimentary travel insurance, airport lounge passes, travel credit and concierge services.

To get value from them, you actually have to use them. If you won't, you might want to look at a frequent flyer credit card with a lower annual fee and fewer perks instead.

What are my frequent flyer points worth?

The dollar value of your frequent flyer points depends on what rewards you redeem.

In general, flight upgrades and flight rewards give you the best value and offer an average of around 2 cents for every 1 point redeemed. In comparison, gift card rewards typically offer 0.5 cents per point.

Example: Value per 1,000 Qantas/Velocity points

These examples give you an idea of the value of your points for a few domestic and international flights. Keep in mind that the total points needed and value can change based on factors including the fare class, flight sales and carrier charges (which are usually billed separately).

(Calculations are based on 13 October 2022 point values for Qantas Classic Flight rewards and Velocity Reward Seats. Flight values are based on the average fare prices for Qantas and Virgin Australia flight searches on 13 October 2022)

You can check out Finder's guide to how much 1 Qantas Point is worth for more examples. If you want to know how much your points (from all major Australian programs) are worth, check out our points calculator.

Are frequent flyer cards worth it?

Frequent flyer credit cards are worth it if you pay off your balance and get enough value for the annual fee you'll pay. You don't have to use every feature, just make sure you take advantage of the perks you value.

Some key points to keep in mind:

• Most credit cards offer an interest-free period for purchases when you pay the full balance each month.
• Introductory offers can include a reduced or $0 annual fee in the first year.
• You can cancel a card at any time if you don't want it any more.
• Qantas and Velocity offer other ways to earn points with partners – you could even choose to earn points through both programs.

Point-hacking

There are dedicated point-chasers that will switch cards every year or two to make the most of bonus point promotions.

This strategy is sometimes known as credit card churning and can suit people who primarily use credit cards to earn points – and pay it off as they go. Otherwise, the cost of annual fees and potential interest won't be worth it.

Point hacking and credit card eligibility

Credit card brands frown on churning, and many bonus point offers exclude people who have recently had a card with the same bank or brand. For example, if you had an American Express card, you'd usually need to wait 18 months after cancelling it before you would be eligible for a bonus points offer on another Amex card.

Here, we've outlined the amount of time you'll need to wait to be eligible for a bonus points offer with different providers.

Note: Citi and Virgin Money don't list a specific timeframe for previous or existing customers.

Some banks apply this exclusion period to each type of rewards card. For example, NAB applies an 18-month exclusion period to NAB Qantas Rewards cards, separate to NAB Rewards cards. And ANZ has a 12-month exclusion period for ANZ Frequent Flyer cards, separate to ANZ Rewards cards.

In these cases, you'd still be eligible for a frequent flyer credit card offer with NAB or ANZ, even if you had a NAB Rewards or ANZ Rewards card.

Frequently asked questions

• Can I earn points on payments to the ATO?

  Most Australian banks consider government transactions (such as ATO bills) ineligible to earn points. Currently, most of the cards that allow you to earn points on ATO bills and government transactions are issued by American Express – or designed for business spending, rather than personal use.

• Can I earn status credits with a frequent flyer credit card?

  As of 28 December 2022, only the American Express Velocity Platinum and Qantas Premier Titanium have ongoing bonus status credit offers. The HSBC Star Alliance Credit Card also has an introductory Gold Status offer and annual status offer that can fast-track you to Silver or Gold frequent flyer status.

  Sometimes, other credit cards have promotional offers that let you earn status credits. But the most common way to earn status credits – and reach higher frequent flyer membership tiers – is by flying with the program's main airline or a partner.

• How can I redeem my frequent flyer points?

  When you earn frequent flyer points with your credit card, they're transferred to your linked frequent flyer account – usually once a month. To redeem your points, log in to your frequent flyer account and follow the prompts to redeem your rewards.

• Can I transfer points to another program?

  You can often transfer credit card rewards (such as American Express Membership Rewards or St.George Amplify Rewards) to frequent flyer programs, but you can't usually transfer frequent flyer points between programs.

  Keep in mind that you can use your frequent flyer points to redeem flight rewards with a partnered airline. For example, Qantas belongs to the oneworld Alliance, so you can use your Qantas Points to redeem flight rewards with partners including British Airways, American Airlines and Cathay Pacific.

• Will I lose my points after I cancel my card?

  If the points have already been transferred to your frequent flyer account, you won't lose them by closing your credit card account. But it can sometimes take a few weeks for the frequent flyer points to appear in your account, so make sure they have been added before you cancel your card.

• Do frequent flyer points expire?

  Frequent flyer points usually expire if you don't redeem them, but how long you have to redeem them is different for each program.

  With Qantas and Velocity Frequent Flyer, your points won't expire while you're earning or redeeming them to keep the account "active". If you don't earn or redeem points for 18 months with Qantas or 24 months with Velocity, they will expire because of "account inactivity". You can check the conditions for other programs to avoid losing points.

• Are all frequent flyer points worth the same amount?

  No, frequent flyer points are worth different amounts across programs. At the time of writing, you can redeem a $100 David Jones gift card for 20,010 Qantas Points or 19,500 Velocity Points. So in this example, you'll get slightly more value if you redeemed your Velocity Points for the $100 gift card.

• Can I add additional cardholders to a frequent flyer credit card?

  Most frequent flyer credit cards let you add at least 1 additional cardholder to your account. This means they can spend money and earn points through your account, which can help you get frequent flyer rewards faster.

  Just keep in mind that you're the only one legally responsible for the credit card – and some cards have additional cardholder fees that are charged each year.

More frequent flyer guides and tips

Qantas Frequent Flyer Guide

All the ways you can earn and redeem Qantas Points, plus Status Credits, tips and insights.

Velocity Frequent Flyer

How to earn and redeem Velocity Points, pool them with family, get higher status and more.

Credit card points calculator

See how much your points are worth in dollars with Qantas Frequent Flyer, Velocity, Amex Membership Rewards, Westpac Altitude and more.

Icons from flaticon.com