Frequent Flyer Credit Cards

A popular reward feature of credit cards, earn Frequent Flyer points for free flights!

Frequent flyer credit cards are designed to make international and domestic travel safer, simpler and more affordable. Dollars spent towards travel purchases, such as airline tickets, hotel stays and other bookings can earn you double or triple rewards points that can be redeemed for your favorite frequent flyer program for faster free flights, upgrades and more. Coupled with the peace of mind offered by travel insurance and fraud protection, you won't want to leave home without your frequent flyer credit card ever again.

Frequent Flyer Credit Card Comparison

Frequent flyer credit cards are loyalty credit cards operated on behalf of various airlines by the credit card issuer, the most obvious being Visa, MasterCard and American Express. The way they work is that the customer becomes a member of the airline's frequent flyer program and then builds up frequent flyer miles according to how much spending they carry out on their credit card. They may also earn double or bonus points when they spend on travel or affiliated services with the airline itself, or any number of airlines partnered with the main carrier named on the card. This tiered system of points accumulation is commonplace on frequent flyer credit cards.

Once the cardholder has earned enough miles or points, they can redeem them for a number of different options: for free air travel or as part-payment towards the cost of the flight; for other travel-related items or services, such as seat upgrades, special access to airport lounges, and priority bookings; and a wide range of non-travel-related items which make the card more universally attractive.

Frequent flyer credit cards owe their existence to Texas International Airlines, which introduced the first frequent flyer program in 1979. The American Airlines' AAdvantage program followed in 1981, and now the majority of airlines either have a frequent flyer program, or are affiliated with an airline that does. Many of these also now have co-branded frequent flyer credit cards. These include the American Express Blue Sky, American Express Qantas Ultimate, ANZ Frequent Flyer, Emirates Citibank Platinum, NAB Qantas, Velocity NAB (Virgin Blue, Virgin Australia, Pacific Blue & Polynesian Blue), Westpac Altitude (Virgin Blue, Malaysia Airlines, Air New Zealand & Singapore Airlines), and Westpac Earth (Qantas). There are others, and the choice can be quite bewildering at times when you are trying to weigh up their various pros and cons.

How Frequent Flyer Credit Cards Work

Travel rewards credit cards are offered by companies to boost their business. They are essentially the same thing as Air Miles or Frequent Flyer cards, which give out discounts, merchandise and even flight time when you spend money on their line of credit. This is very good for those who spend a lot of money on their cards, whether in a short period of time or over a couple of years.

As you spend money, and this can be on virtually anything, you collect points which build up for you. You can spend them in a lump some or however else you please. Travel rewards credit cards offer you the chance to get more value for your money by doing your everyday spending.

When examining travel rewards credit cards you should always be aware of what is being offered by the credit card company. Sometimes a travel rewards credit card will only offer you a temporary points system, meaning that after a certain time period your earning of points will stop. Some companies offer introductory rates on their travel reward credit cards, and sometimes this can be as high as two times the reward points for every dollar spent. This can add up very quickly, and you may be pleasantly surprised at how fast your credit card has been accumulating these points.

Travel rewards credit cards are not right for everyone, but if you are a seasoned traveller, or merely enjoy discounts on hotel bookings, flights and merchandise, this type of points program may be perfect for you.

If you want to check your points balance you can see it on your bill statement, and for regular updates there is a website available for you to check your personal account. When you wish to make a purchase with your points, it is wise to first check and see what is available within your points range. On the website, you may see what products are available to you, whether it be flight discounts, discounts on hotels, merchandise or other benefits.

Frequent flyer credit card key points

Ever since their emergence onto the market, frequent flyer credit cards have been a huge success, and have been responsible for luring many customers away from credit cards without such a feature. Nowadays, their popularity is only rivalled by cashback credit cards that offer the customer a percentage of their spending back in the form of a credit to their account or in cheque form. Here are some of the main considerations when choosing a frequent flyer credit card:

• Does the airline charge a separate fee to join their frequent flyer program that is not included in the annual credit card fee? Some credit cards of this sort require that the customer is a paid-up member of the program before the card is of any use in earning points towards flights with the affiliated airline. In some cases this fee is waived, so it is always worth checking out the true cost of the card you apply for.
• What is the annual fee for the frequent flyer credit card? Make certain that a program fee is not hidden within the credit card's annual fee. If this is the case, it will be somewhere in the small print, and you need to make sure that the fee is worth paying in that you will be spending enough on the card to easily balance the fee with the rewards you earn. Many rewards programs that require a fee to be paid actually end up costing the customer, not rewarding them. It will all depend on how much you spend on your card each year.
• How does the program really work? Whilst some programs are simple to comprehend because they have a miles-per-dollars-spent ratio as their earnings system, others have a points-per-dollars-spent ratio. These points are then exchanged for air miles with the chosen airline or its partners. Whereas miles are a known quantity, the value of points earned is not immediately apparent. It is therefore crucial that you check out the redemption value of the points you earn to make sure it is a system that fairly rewards your spending.
• Are the points or miles that are earned on your frequent flyer credit card capped in any way? Some cards impose a limit on how many points can be accumulated in one year. If you are a cardholder who spends a lot on your plastic, this is not a feature you want on your card as it means that spending beyond a certain point in the year will not count.
• Is there an expiry date on any points or miles earned? If so, this will work against the cardholder who is not a big spender and who needs plenty of time to build up to a worthwhile reward. Points or miles that are voided if unused after a certain time put pressure on the cardholder to make a redemption for a reward they may not really want, just to make use of them before they disappear.
• Which airlines are you likely to use on a regular basis, or are you saving up to use? Make sure you choose a frequent flyer credit card operated by an airline whose services you will actually use, and whose routes you will travel on. Also find out which partner airlines you can use, and if you don't want to fly for a while, what other rewards are on offer besides flights. Check that your chosen airline is happy to redeem points for miles. For example, Qantas and others recently stopped allowing customers to swap generic rewards points for their Frequent Flyer points unless they were earned directly onto their Frequent Flyer membership.
• How much flexibility is allowed with regards to how and when you can redeem your points or miles?
• Don't forget the basics as you get caught up in the whole frequent flyer thing. Remember that the interest rate on your purchases will be extremely important if you are not always clearing your balance in full each month. In fact, a high interest rate on an unpaid balance can very quickly negate the value of any points or miles earned through spending. If you are spending purely with a view to earning points, thus putting yourself in the position where you cannot clear your balance, then you are not playing a very sensible game. Having said that, unless you do spend on your frequent flyer credit card then you will never earn any points. It is a balance you must strike if you are to actually gain from having this card.
  

Finding the best frequent flyer credit card

When making the decision on which credit card you want, it is important to really read what the credit card company is offering since they all offer different rewards. When you are comparing you should pay attention to the benefits that are offered by the card companies. It is also important to realize that there is a credit card for everyone, and that one that is suitable for another person may not meet your interests and needs.

Frequent Flyer rewards programs are perfect for those who enjoy flying and do it frequently since you end up saving a lot of money over time.

The Benefits of Flying Reward Programs

• Air Miles - Is designed for those who love to fly and do it frequently. They are associated with several different airlines, and some of them even offer bonus Air Miles to those who purchase flights at participating locations.
• Frequent Flyer Membership - A lot of Air Miles credit cards offer memberships automatically when they open a line of credit for you. You should, however, make sure that you are fully aware of whether they offer it free of charge or if they charge you a fee that may cost more than you actually earn through the reward program. Some of the benefits included with Air Miles credit cards are: access to VIP airport lounges, special offers discounts, upgrades on flights and priority check ins.

An important thing to know about when you are choosing a Frequent Flyer credit card to go with, is which airlines it includes as part of the rewards program. Also, you need to know how many points you can get for each dollar you spend, whether they have introductory incentives, any extra perks, and of course the interest rates, interest free days, and penalties for failure to pay off balances.

Companion frequent flyer credit cards

These are not cards that provide you with a free travelling companion (although that could be nice). This is a fairly new type of credit card that offers two cards on the one account. One will be a MasterCard or Visa card, and the other will be an American Express. There is one annual fee, one credit limit, and one statement. The point of having two cards is that you can earn more points with the Amex per dollar spent, but if Amex isn't accepted, then you use the other card and earn a lower ratio.

The Westpac Earth Card is such a companion frequent flyer credit card, as it is linked to the Qantas Frequent Flyer program. Another one is the ANZ Frequent Flyer, also linked to the Qantas Frequent Flyer Program, and both the Westpac and ANZ cards are also available in Gold and Platinum versions, for those earning higher incomes who require a few extra perks such as complimentary insurances.

The Qantas Frequent Flyer Program

This is the most popular program of its sort in Australia, and one of the most popular worldwide, and there are numerous frequent flyer credit cards that are linked directly to this program, such as:

• Westpac Earth (already mentioned)
• ANZ Frequent Flyer (already mentioned)
  
• NAB Qantas Visa
• Qantas American Express
  
• Frequent Flyer Diners Club
  
• Commonwealth Awards
  
• Westpac Altitude Qantas

Depending on which Qantas frequent flyer credit card you choose, you will have a different dollars-to-points ratio. This will be further affected by the level of credit card you carry, such as Classic, Silver, Gold, Platinum, Premium or Ultimate. Nearly all spending on these cards earns points, and you earn extra points for spending on Qantas flights and services, or their partner airlines, or partner products. For example, you can earn one Qantas Frequent Flyer point per mile travelled on eligible full economy flights with Qantas, Oneworld alliance airlines, and 16 other partner airlines. Oneworld airlines are Qantas, American Airlines, British Airways, Cathay Pacific Airways, Finnair, Iberia, Japan Airlines, LAN, Mal?©v Hungarian Airlines, Mexicana and Royal Jordanian. Between them, they service 675 destinations worldwide, meaning that a Qantas frequent flyer credit card should open up pretty much anywhere on the planet to you.

How to earn more airline rewards points

• Use your card often. Points are based on spending, the more you spend the more you earn so you should use your card as much as possible to get the most points. Just make sure that you do not go over your spending limit or spend more then you can afford to pay off each month. If you are spending money on interest you will lose the value of your airline points.
• Inquire about extra rewards. You might be surprised to learn how many transactions are eligible for extra rewards points. Anything from booking hotels to car rentals to realtor fees may be eligible so never be afraid to ask.
• Fly often. Depending on your program you may get loads of extra points for booking flights with your card. It might be worth the extra cost to take short flights in Australia rather then driving to earn extra points.
• Shop at merchants that are bonus partners. If you are going to be shopping anyway you might as well use the stores that give you bonus points. Obviously, it does not make sense to buy things you do not need, but when buying the stuff you want make the most of it.
• Get the best deal you can find. There are loads of credit card deals available, some are better then others. You can easily find credit comparisons that will show you how the rewards programs stack up and which one lets you earn the most number of points. Don't waste time and money with cards that don't give you the biggest airline rewards points.