CREDIT CARDS
Credit cards
Apart from flying, people can earn points via the use of a credit card.
The financial institutions and airlines did a deal many years ago to offer people frequent flyer points in exchange for spending money on a particular credit card. Each dollar spent on the credit card would represent an agreed accrual of frequent flyer points.
All major credit card companies, such as Visa, Mastercard and Amex all have different credit cards available for people to earn points.
Which is the best credit card for frequent flyer points?
There is no one answer to that question as every consumer needs to choose the credit card that is appropriate for them.
Consumers need to consider:
- airline choice - which airline is the card linked to?
- annual fee
- how many points per dollar spent
- interest rate if balance not paid off in full each month
- how many interest free days
- sign up bonuses offered
- is complimentary travel insurance included?
- is purchase protection insurane included?
Many low rate interest rate credit cards do not include access to a frequent flyer programme or automatic travel insurance. It is normally the higher interest rate credit cards that have the frequent flyer programmes as part of the credit card conditions.
The financial experts would advise that the value of a frequent flyer credit card is one that is paid off in full every month. There is little point in paying a high amount of interest every month just to get frequent flyer points. The interest that a consumer would pay over a period of time would easily pay for the actual airline ticket.
How many frequent flyer points will I earn by using my credit card?
The earn rate of points on each credit card is different.
Some credit cards offer one point for one dollar spent. Other credit cards offer two points for each dollar spent and bonus points for charging an airline ticket to the credit card.
The type of credit card that is chosen needs to support the needs of the consumer. The full details of the credit card need to be assessed and whether or not spending money on a credit card just to get frequent flyer points is value for money.
To verify how many points a passenger will earn by spending on a credit card, the passenger needs to speak directly to the credit card provider. The airline is simply the recipient of the points and cannot advise on what type of credit card is best for you.
Read more about credit cards linked to Qantas Frequent Flyer
Read more about credit cards linked to Virgin Velocity
Other ways for consumers to earn frequent flyer points:
