Airline Credit Cards
Posted March 30th, 2010 and last modified June 28th, 2011Compare Airline Credit Card Offers to find the best deal for you
Australian’s love frequent flyer credit cards. Being able to earn points from every day spending that are redeemable for flights, is a very cool credit card reward feature indeed! Check out our sneak-peak at some of the better airline credit cards available in Australia.
Benefits of Airline Credit Cards
Low Costs On Flights
When you pay for purchases using airline credit cards, you’re able to earn points or miles. Accumulate enough of these and you can redeem them for discounted or even free flights.
With the prices going down on domestic travel, interest charges can quickly add up to more than the cost of a flight. That is why it is so important to only collect points if you are absolutely certain that you can pay off your balance at the end of the month. You may be left out of pocket if you don’t.
Priority Check-In At Airports
When you’re a member of an airline rewards program, you’re given priority check-in. You won’t have to wait in line for ages, as members are rewarded with faster check-in times and aren’t required to wait.
Complimentary Travel Insurances
Anyone who travels frequently will tell you the importance of having travel insurance in place before you go away. You’ll find there are plenty of cards that offer a range of complimentary travel insurances. Some of these include domestic and international travel insurance, flight inconvenience insurance, transport accident cover, hotel burglary cover for domestic travel, purchase protection insurance, extended warranties on items purchased your card and many more.
Personal Concierge Service
You can access your own personal concierge 24/7 if you’re travelling and you want a hand organising your trip. They’ll help you book accommodation, book a taxi, book concert or event tickets, or locate and book restaurants nearby to where you’re staying. They’ll even help you arrange shipping for any items you buy while you’re overseas.
Access Airport Lounges
Anyone who travels a lot will know the pain and inconvenience of waiting for a flight in amongst thousands of other economy-class passengers milling around. However, some airline credit cards can offer you complimentary access into some of the quiet, comfortable airport lounges.
Seat Upgrades
Rather than pay the difference between an economy class fare and a business class fare, redeem some of your airline points to upgrade your seat instead.
Discounted Car Hire
Only some of the airline rewards programs offer discounts on car rentals, but if you look out for programs that offer this, you could redeem some of your points for lower rates on car hire.
Rewards Versus interest
Most airline credit cards charge a hefty 18% interest rate which will add up quickly on an unpaid balance. It is easy to lose sight of the fact that you want to get ahead using this program and truly receive free rewards.
If you are able to keep your balance in check every month then you can benefit from these credit card rewards schemes. A rough estimate for points collection would be 1200 points yearly with Velocity or Qantas when $5000 is spent monthly.
As you can see, the difficulty in comparing one airline credit card to another lies in the fact that not all of these cards are created equally. Hopefully this article has simplified your confusion so that you can now do a better comparison on this type of card.
Other Benefits
Depending on the airline credit card you apply for, you may also be able to redeem your points on other great things that don’t necessarily have to do with flights. For example, you might be able to redeem your points for tickets aboard a cruise ship.
There are also airline rewards available to help you receive discounts on fuel purchases and even grocery purchases if you prefer.
The key to choosing the right airline credit card to suit you is to check out the options available. Be sure the costs will be worth the effort and always take the time to compare all the options available.
Factors of Airline Credit Cards
Well, you have probably tackled one of the main hurdles involved. You have already determined that you want an airline credit card as opposed to other types of credit cards. You have made a wise decision up to this point, but how will you continue to narrow down and make your final selection. This will basically depend on a number of factors that you have the power to control at this point.
Basics
Just like with any other credit card, there are still a few basics that you need to account for when comparing airline credit cards. Remember that although it is an airline credit card, it is most importantly a credit card first. You still have to do the proper research to make sure that you will be making a wise decision. Before you make your final selection, research items such as the interest rate, annual fee, balance transfer rate, cash advance rate, and any other credit card surcharges that may be passed along to you via the merchant. As with any other credit card, you want to compare airline credit cards and ensure that you are getting the best one available.
Points
When it comes to airline credit cards, it is all about the points. Compare the point systems for many of the available programs and determine which one will offer the best benefits. For each dollar that you spend, how many airline miles will you gain? In addition to the air miles gained, will you be awarded points for money that is spent on other things besides air travel? This is something that should concern you if you are not a frequent globetrotter. How many points will you earn if you purchase everyday items?
Perks
In addition to the regular points that are awarded on credit cards, look for those that have bonus points or introductory offers. For instance, as a new card user, many credit card companies will offer such things as double points at the beginning of your card use if you spend so much money during this particular period. Or, you might find credit card companies that have other occasional bonuses. The bottom line is that you should try to find as many points and perks as you can.
Destinations
There are some airlines that offer credit card programs, but they only fly to certain destinations. They usually have very good features, but if you do not frequent those parts of the world, it would not be in your best interest to choose an airline credit card from those specific airlines. Opt for an airline that travels the globe so that you will have more options for using your card and earning points.
How Do Airline Credit Cards Work?
Airline credit cards are credit cards that have a frequent flyer rewards program attached to them. Every time you use your credit card, you earn points, which you can later redeem for various travel-related rewards. The number of points you earn for every dollar you spend differs from card to card, as well as the value of each point.
Some airline credit cards also allow you to earn a higher number of points per dollar spent if you shop with their partners. The rewards that you can redeem your points for vary from cash back to discounts on hotels and car hire. However, the most popular types of rewards are free plane tickets.
Why Do Lenders Offer Airline Credit Cards?
Since there are two parties involved in offering airline credit cards, it is as important to understand why lenders offer these credit cards as well as airlines. The reason lenders offer airline credit cards is because they want to encourage you to use your credit card as much as possible.
A fair portion of a credit card company’s revenue comes from the merchant fee they charge sellers to process credit card transactions. Thus, the more people use their credit cards, the more money they earn. This is why you earn points for every dollar you spend rather than every dollar that’s left in your account.
Why Do Airlines Offer These Credit Cards?
You might be wondering why airlines are so willing to offer these generous rewards schemes. The answer is quite simple. Many scheduled flights will have a number of unsold seats and rather than not make any money on them at all, they prefer to fill them, even if it is at cost price. Yet they don’t really want to advertise these free seats at a lower rate because then they will end up with people waiting to buy their plane tickets at the last minute so they can avoid paying full price. It also helps them avoid hundreds of disgruntled customers complaining that they paid full price.
The way airlines avoid these issues is to offer them as rewards in frequent flyer programs attached to credit cards in return for a percentage of the profit from the card issuer. This way both the airline and the credit card company make money.
So, if you thought that airline credit cards have such generous rewards programs because these companies are actually trying to reward loyal customers, sadly, you would be wrong. They do it to increase their revenue. Of course, this doesn’t mean that there aren’t any advantages to these programs. It simply means that you need to be a little more careful when you go spending on your card to earn rewards, especially if you can’t repay the full amount at the end of the month.
Airline Credit Card Schemes
Lately there has been talk concerning airline credit card schemes and how complicated they are. Some people believe that they encourage Australians to add more debt to their cards with extra spending to accumulate points. The founder of Australian Frequent Flyer, Clifford Reichlin, has stated that people can overspend in order to receive Frequent Flyer points, and this outweighs the benefits of the points.
Clifford Reichlin also stated that the Virgin Australia Velocity and Qantas Frequent Flyer programs are complex, which makes it difficult for people to figure out which program is the best airline credit card.
He pointed out that there are more options with the Qantas program, that it has more partners, and that there are more credit cards that are linked up with the Qantas program. From that, he concluded that the Qantas program was probably more comprehensive. He also went on to say that the more generous rewards scheme would be the one with Virgin.
Tips for Earning More Airline Credit Card Rewards Points
There are many customers who complain that they can’t accumulate enough airline credit card rewards points to make it worthwhile for them. Yet, there are plenty of ways you can maximize the points you earn.
Pay for More Purchases
If you have a credit card that gives you reward points for spending money, go ahead and pay for the things you need on your card. Pay your bills or pay for your groceries or fuel on your card. This will mean increasing your balances, but as long as you remember to put aside enough money to cover the amounts you spend before the interest free days expire, this won’t be a problem. You’ll be earning points without adding to your debt levels this way.
Eat Out
Some airline cards will give you rewards when you eat out at certain restaurants. Take the time to figure out which restaurants will earn you bonus points and eat there. It’s easy to find some great places to eat in convenient locations and in a price range to suit your own budget. When you’re done, pay for your meal using your credit card and you’ll be receiving rewards for dining at a partner restaurant, as well as points for using your card.
Shop with Partners
You can boost your airline credit card rewards points by shopping with the various partners of the program you’re with. Most cards offering any kind of reward program will have partnering stores, outlets, and airlines that will offer you extra bonus miles when you shop with them. Once again, this allows you to earn points for shopping at those particular outlets and again for using your card to pay for your purchases.
Fly More Frequently
With so many budget flights available, why not fly more often instead of driving between destinations? Each time you fly using any of the partner airlines within your particular airline rewards program, you’ll be earning more points. Pay for your flights on your card and you’ll receive points for that, too.
Watch for Special Deals
Your airline rewards program is very likely to have some form of newsletter to let you know about any special offers circulating. A good example of this is being asked to complete a survey after you’ve eaten at a partner restaurant. You may have earned bonus points for eating at that establishment and more points again for paying with your credit card. Yet you can earn even more bonus points on top just for completing a short survey about your experience. This has the potential to triple the number of points you’ve earned from that one transaction.
The real secret behind earning plenty of airline credit card rewards points is to be aware of the ways in which you can be rewarded. Then work out ways to use those tips to your advantage and you’ll be racking up those miles in no time.
Airline Credit Cards Comparison
When looking for airline credit cards, you want to find one that will offer you exactly what you need and what you are looking for. Below are overviews of the some excellent airline credit cards.
Difficult To Compare
There are a few factors that make these cards difficult to compare including:
- Rewards tiers that are incomparable.
- Interest rates that vary.
- A wide selection of Airline credit card fees.
- Different points amounts given for every dollar spent.
Westpac Earth Gold Credit Card
This card is categorised as a companion credit card. This means that you receive 2 cards for the price of one but you only pay one annual fee. This card has partnered with Qantas and offers Frequent Flyer points for the airline whenever you use your card.
- Low introductory balance transfer rate of
- Lower fixed rate on purchases of .
- Competitive cash advance rate of
- Competitive annual fee of
- Receive up to 45 days of no interest when you make purchases
- Excellent rewards program
For those looking specifically for airline credit cards, this is one to consider. Westpac offers a free membership into the Qantas Frequent Flyer program for anyone applying before 30 June 2010. You will earn 1 Qantas Frequent Flyer point for every $1 that you spend with your Westpac American Express card. When you use your Westpac MasterCard, you will receive 0.5 Qantas Frequent Flyer Points.
American Express Qantas Premium Card
This is a premium airline credit card with maximum benefits. You can earn higher than average rewards points towards your airline miles. If you love to travel, this is a card that will allow you to do just that and often.
- For purchases, you receive .
- The annual fee is
- Enjoy a lengthy interest free period after purchases of up to 44 day
The first time you use your card, you will be credited 5,000 points with the option of receiving an additional 2,500 points when you purchase selected products and services in Australia. The airline rewards program allows points to be transferred to your Qantas Frequent Flyer account every month automatically. You will quickly see your rewards points adding up and they will be ready for you whenever you are ready to travel.
When it comes to airline credit cards, this gold card not only gives you Qantas Frequent Flyer points but an abundance of additional services that make it clear you have a gold card.
- Low interest balance transfer rate of
- Low gold card annual fee of
- Make cash advances at
- Freely make purchases as you have 44 days of free interest to pay off your balance
When you first spend up to $3,000 on your gold card, you will receive 2 points for every $2 that was spent. This is for the NAB Qantas American Express. When you use your NAB Qantas Visa, you will receive 2 points for every $3 that is spent.
This is a platinum credit card issued by Westpac to be used for rewards on Singapore Airlines. For those that fly Singapore Airlines frequently, it is one of the best airline credit cards available. Because of its platinum status, you can expect exceptional service any time of day. Concierge service is available as is insurance for your travel. One of the amazing benefits of this card is that it is both a Visa and an American Express so you have two airline credit cards earning you twice the points!
If you use your Singapore Airlines Westpac Gold Visa card, you will receive 0.5 miles for every dollar you spend on purchases. If you want to increase your points even fast, you can shop at any number of participating bonus partners located in Australia. In addition to the excellent points structure, you can also benefit from the many insurances that this gold card offers like transit accident insurance, travel insurance and extended warranty insurance.
With the Emirates Citi Platinum Card you can earn 1.5 Skywards miles for each dollar you spend on purchases. This is higher than most other cards. You can also have a chauffeur drive you to and from the airport when you fly Emirates. This is offered as a complimentary service once a year. When you get to the airport, enjoy the complimentary lounge pass for two in the Emirates Lounge in Australia.
With the ANZ Frequent Flyer card, you receive 1 point each time you use your American Express card. If you choose to use you Visa card, which is also linked to the same account, you will receive 1 point for every $2 you spend on purchases. In addition to the flight benefits, you can also use to your advantage the many offerings through American Express Selects.
airline card rewards program is the Emirates card by Citibank. This is also a platinum card and comes with all the benefits you would expect from that, such as a free pass to the Emirates lounge or even a car to drive you to and from the airport. For every dollar that you spend on the card, you will earn points towards travel with Emirates.’);?>
As you can see, there are many options when it comes to choosing the right airline card rewards for your needs. Make sure you do your research before opening a new credit card as some cards do have annual fees. The interest rate and any other fees should also be researched to insure you are getting one of the best airline credit cards.
Check out today's featured offers:
| HSBC Credit Card | ANZ Platinum | Citibank Rewards Credit Card - Platinum Card | Westpac Low Rate Card |
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0% p.a. for 6 months on purchases & balance transfers. |
0.9% p.a. for 15 months |
1.9% p.a. for 9 months (reverts to 13.49% p.a.) |
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