If you’re looking for a rewards credit card, you may want to consider one that rewards you with bonus frequent flyer points when you sign up or meet the purchase requirements to receive them.
Bonus frequent flyer points on signup are a great reward for doing nothing you wouldn’t be doing already with your credit card. Simply apply for a card and get approved in most cases, and they’re yours to use. The key here is to read the terms and conditions before committing to anything, as there are often a lot of restrictions as to how you can earn these bonus points on sign up. Some credit cards will need a minimum spend, some need you to apply by a certain date, and others require a combination of these.
What credit cards offers bonus frequent flyer points for new applicants?
These credit cards award you a certain amount of bonus frequent flyer points after you’ve signed up and been approved for the eligible credit card. It’s important to note that to qualify for the bonus frequent flyer points, there are a set of terms and conditions that you’ll need to follow.
Qantas Frequent Flyer Credit Card
The HSBC Platinum Qantas Credit Card allows you to earn Qantas Points through everyday purchases. Plus earn bonus points at a number of partner outlets.
- $199 p.a. annual fee
- 19.99% p.a. on purchases
- 0% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.99% p.a.
- Up to 55 days interest free
- Minimum Income Requirement of $60,000 p.a.
Rates last updated October 23rd, 2014
What are the types of the credit cards that offer bonus frequent flyer points?
- Reward credit cards. This type of card lets you earn points while you spend, and awards you with benefits such as free flights, gifts, cashbacks and other rewards. Remember that with all reward credit cards you need to maximise the value of your points as much as possible. Be mindful that some of these cards carry a high annual fee. These credit card providers offer bonus points on sign up as an incentive for you to apply.
- Platinum and Black credit cards. These high tier credit cards provide many benefits to their owners for a very high annual fee. Income requirements for these types of cards are usually higher when compared to standard credit cards, but part of the benefit of applying for one is that credit card providers generally offer bonus points on sign up as an incentive.
How does a credit card with bonus frequent flyer points for new applicants work?
Generally this offer is available to new and approved applicants who apply for an eligible credit card by a certain date. These bonus offers usually cannot be combined with other offers such as packages, promotions or when you close an existing credit card from the same provider.
Usually the bonus frequent flyer points offer only applies once for every account you open that links to that credit card, and your application has to be approved. Some terms and conditions state you need to apply before a certain date as well, so always remember to read these before applying.
In most cases, to receive your bonus points you must activate your credit card and make your first eligible purchase – which normally excludes things like balance transfers and premiums for the insurance attached with that credit card. Again, the terms and conditions could set a time limit as to when you need to make this first purchase by, but it’s usually around 90 days.
If you’ve met all of the terms and conditions for your bonus points, then the points are normally credited into your frequent flyer account within three months of your first eligible purchase. If you transfer or cancel your credit card before the points are actually processed into your account, then you may not be eligible for them anymore. Your credit card provider is usually not responsible for any loss to your points.
How to compare credit cards that provide points for new applications
- The amount of bonus frequent flyer points offered. There are a number of generous offers in the Australian market, with some credit card providers offering bonus points up to the value of a $50 Myer gift card.
- Value of points offered. Different cards have different rewards programs. Points in one program may not have the same value as points from another, so 10,000 bonus Qantas Points may not get you the same value of rewards as 10,000 bonus American Express MR Points. Research will help you compare these values.
- Interest rate. This determines what your interest repayments will be, so it’s important to find an interest rate that is affordable within your budget. It’s best if you only make purchases that you know you can pay back within the interest free period, and carry no balance from one month to the other.
- Annual fee. This will offset some of the benefits and rewards that you earn with your reward points, so it may be worthwhile to ensure that your annual isn’t too high.
- Balance transfer offer. Some of these credit cards also have a balance transfer offer attached to them, so if you currently owe a balance then you may want to consider completing a balance transfer and earn bonus points in the process. However, it’s important to know that since you’re completing a balance transfer, spending more on your credit card to receive the bonus points could defeat the purpose of the balance transfer in the first place, as your primary goal is to pay off the debt first.
Pros and cons of credit cards with bonus frequent flyer points
- Bonus frequent flyer points and rewards. Getting bonus points for minimal effort is always a benefit, especially if the points you earn can get you a voucher which offsets part of your annual fee. Frequent flyer points are also a great way to upgrade your flights when travelling.
- High annual fee. Most rewards and high level credit cards come with a high annual fee to facilitate all of the features they may come with. However, if you know your spending patterns and you know you’ll get more back in rewards, then the annual fee may not matter. Be mindful that some points are capped or expire.
Things to avoid with credit cards that offer bonus points
- Ignoring terms and conditions. Be mindful that these cards have terms and conditions as to how you earn those bonus points. This usually involves being approved by a certain time with your application, a minimum spend and no cash advances.
- Applying for a card just because of the bonus points. Signing up for a card simply to get bonus points can cost you unnecessarily in annual fees. You’ll also have another credit card in your wallet to tempt you. Also, ensure the bonus points aren’t hiding the fact that the card has an overly high interest rate or is missing features you use regularly.
Frequently asked questions about bonus frequent flyer points and credit cards
- Where can I compare Velocity rewards credit cards? You can compare our featured Velocity reward credit cards on this page.
- Where can I compare Qantas rewards cards? You can compare our featured Qantas Points reward credit cards on this page.
- Where can I see all the rewards credit cards that award bonus points? Please see our guide to credit cards that offer bonus reward points.