Our Pick Of The Best Frequent-Flyer Credit Cards

To determine our pick of the best frequent-flyer credit cards for Australians, Forbes Advisor Australia looked at nearly 30 frequent flyer credit cards on the Australian market.

We analysed 17 different data points, or features, of each card. These features included:

• The rewards program the credit card was linked to;
• Whether the card was for businesses or individuals;
• If there was a bonus points offer and, if so, how many bonus points were available;
• The points-per-spend earning rate;
• The rate at which points transferred to frequent flyer programs;
• The annual fee;
• Currency conversion fee;
• If the reward points were capped or uncapped per statement period;
• Travel benefits, such as travel credits;
• Whether or not complimentary lounge access was available;
• Complimentary insurance;
• Any other perks, such as complimentary access to other reward programs or hotel upgrades;
• The interest rate on purchases;
• The minimum annual income required to apply;
• Whether there was a minimum credit card balance;
• Interest-free period on purchases; and
• If additional cardholders could be added.

Each credit card was compared and ranked against one another considering the above factors. Cards that were ranked higher included those with affordable annual fees in relation to benefits; a good range of travel perks, such as travel credits or flights; lounge access; complimentary insurance offerings; uncapped points; and a good points-per-spend earning rate.

Each feature was analysed and compared to come up with our star ranking out of five.

It’s worth noting that while the Titanium Qantas Credit Card is a fantastic choice for many reasons, its annual fee of $1,200 ruled it out of our list. Instead, we chose to list similar premium cards—with great perks and sign-on bonus points—that cost much less.

A Note on Star Rankings

You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.

With a frequent flyer credit card, you earn points-per-spend on your credit card, allowing you to upgrade your flights, pay for flights, and make other purchases through frequent flyer reward stores.

Many frequent flyer credit cards also offer bonus points upon sign-up. Amex and Visa often have rules regarding how long you must wait before taking out the same card twice (usually 18 months to two years) to prevent frequent flyer enthusiasts from signing up to a range of cards for bonus points, then cancelling them on repeat.

They also usually come with a range of travel perks, such as annual flight or travel credits, complimentary flights, access to business lounges, travel insurance or other insurance offerings. The perks available will depend entirely on the card and the frequent flyer program it is associated with, but generally speaking: the higher the fee, the better the perks.

Frequent flyer credit cards are either linked directly to a frequent-flyer program, such as Qantas Frequent Flyer or Virgin Velocity, or allow the cardholder to accrue “flexible points” that can be transferred to various airline programs. These flexible points usually transfer at a lower rate than dedicated programs. For example, with the St. George Amplify Rewards Signature Credit Card, 2 amplify points equate to 1 Virgin Velocity points, whereas 3 amplify points equate to 1 mile with Singapore Airlines.

There is very rarely a 1:1 ratio when it comes to transferring flexible points to frequent flyer rewards cards, although there often is a 1:1 ratio with specific loyalty cards, but the trade-off is you can only migrate these points to the one program.

Related: What Are Rewards Credit Cards?

Frequent-Flyer Credit Cards Vs. Business Charge Cards

As Steve Hui from IFLYFLAT explains to Forbes Advisor Australia, the key difference between frequent-flyer credit cards and business charge cards is their intended customer. While frequent-flyer credit cards are for individual customers, business charge cards are tailored for company use.

“They are designed to handle significant business expenses such as payments to suppliers, rent, taxes, contractor fees, and other operational costs,” Hui explains.

“These cards typically come with higher credit limits and may offer features like cash-flow management or short-term lending facilities.

Business charge cards also often include perks like airport lounge access, travel insurance, or hotel Gold status, Hui adds.

“They are ideal for businesses that want to earn rewards or frequent flyer points on their large volume of spending.”

However, whether it’s an individual or a business earning frequent flyer points via a credit card, the reward structure remains the same: every dollar spent on the card earns points which can be redeemed for flights or other travel perks.

Wondering what the best use of your points are? Hui sets his sights on snagging rewards seats.

“The highest financial value and most memorable experiences from using frequent flyer points typically come from redeeming them for travel, particularly for business or first-class flights,” Hui says.

“While points can be used for hotels, car hires, gift vouchers, or even items like coffee machines, the emotional and financial value is significantly higher when used for travel.”

Hui explains that from a financial perspective, using points for business class on long-haul international or even domestic flights offers the best value: ranging from around 3 to 6 cents per point.

“In contrast, redeeming points for gift cards yields a much lower value of approximately 0.5 cents per point,” he says.

“Economy flights and hotel redemptions typically offer about 1.2 cents value per point, which is also lower compared to premium travel redemptions.”

Hui adds that while using points for upgrades can seem appealing, it’s important to understand that airlines “control the upgrade process”. This means when you request an upgrade, unlike a rewards seat, it’s not guaranteed but rather subject to availability and the airline’s discretion—this often means those with higher-tiered statuses are likely to secure the upgrade.

“In essence, for both financial and experiential reasons, the best use of frequent flyer points is generally on high-value travel redemptions, particularly in premium cabins. This not only maximises the financial value of your points but also creates unforgettable travel experiences,” Hui says.

There are a range of factors to weigh up when selecting a credit card, and frequent-flyer credit cards come with their own unique set of considerations.

For starters, it’s paramount that you know whether a minimum income is required, as well as the annual fee. For travellers, the bonus points offer on sign-up is also important. The higher the bonus point offering, the higher the amount of points you’ll be able to earn in your first few months. However, there is always a catch. Usually this requires spending a certain amount within a short time period, so once again, it’s important to make sure it’s something you can afford.

Next, you’ll want to consider the points earning capacity. Ideally, you would want a card that has a 1:1 point earning ratio or even higher; say, earning 1.5 frequent flyer points for every $1 spent.

It’s also worth considering whether you have uncapped points earning potential, or if there is a capped limit of what can be earned in each statement period or each year.

As frequent-flyer credit cards are targeted towards—you guessed it—frequent flyers, the travel benefits also matter. Look out for annual gift vouchers, complimentary travel insurance, lounge access, premium upgrades, hotel credits, and discounted companion fares. You may also ask whether the travel perks on offer are of real value to you. For example, if you are already a Platinum or Gold member in Virgin Velocity then a credit card offering generous lounge access may not be worth the annual fee as you’re entitled to Velocity and partner lounges through your frequent-flyer status.

Also pay attention to the interest rate, interest-free period and minimum credit limit. Frequent-flyer credit cards are no different from other cards in that they can become debt traps if not paid off in full each month.