What is a frequent flyer credit card?
A frequent flyer credit card is a credit card that you can use to accumulate frequent flyer points and redeem them for flights, upgrades and gift cards through a frequent flyer reward program such as Virgin Velocity or Qantas Frequent Flyer.
Are there any frequent flyer credit cards with no annual fee?
Yes there are. Two of the most popular are the Qantas American Express Discovery Card and the American Express Velocity Escape Card. In exchange for no annual fee, these cards have very few frills but they do allow you to accrue points.
Which frequent flyer credit card is best?
It depends on your needs and what you hope to use the points for. In our analysis, we picked a range of cards that would work well for a variety of travellers: from the budget conscious to business spenders.
“When people ask, ‘What is the best credit card?’ it’s akin to asking, ‘What is the best car?’,” Steve Hui from IFLYFLAT says.
“The answer varies significantly based on individual needs and preferences.”
Hui says that to determine the best frequent flyer credit card for you, you need to consider the following:
- Monthly spending: Assess how much money you spend per month. This will help in identifying cards that match your spending level, especially considering any points caps or tiered earning rates.
- Current points accumulation: Take into account the number of points you already have. Ideally, you want a card that complements and adds to your existing points pool.
- Travel goals: Think about your travel destinations. Different frequent flyer programs are better suited to different destinations, so choose a card aligned with an airline or alliance that serves your preferred routes.
- Spending categories: Consider where you tend to spend the most. Some cards offer bonus points for spending at supermarkets and petrol stations, others at hardware stores and department stores, and some for overseas purchases. The key is to find a card that rewards you the most for your spending habits.
- Matching the card to your spending profile: The goal is not to spend more but to maximise points from your existing spending. Analyse where you spend your money and choose a card that best matches this spending profile.
“By carefully selecting a card that aligns with these factors, you can maximise the points earned from your regular expenditure without increasing your spending, ultimately ‘winning the game’ in terms of travel rewards,” he says.
Are there frequent flyer credit cards in Australia?
Yes, there are frequent flyer credit cards in Australia for both Australian airlines and international carriers.