8 hacks that could help you earn more frequent flyer points

If you’ve got a frequent flyer credit card or are considering applying for one, how can you make the most of it, and what point hacks could you consider?

When asked what we want to do more of in life, many of us would probably say travel and see the world. Earning frequent flyer points with your credit card can be one way to contribute to a trip, and if you thought the only way to earn these points was by purchasing airline tickets, you could be surprised by the many other ways that can help you boost your points balance. Here are eight credit card point hacks that can help you enhance your travelling experience.

1. Look for the right credit card

While it may seem obvious, one of the first steps is comparing credit cards and finding one that suits you.

Look for a credit card with a high earn rate (the number of points earned per dollar spent) while factoring in any conditions or points caps that may apply. You can compare cards that earn Qantas Points and Velocity Points with Canstar.

It’s also important to consider the card’s annual fee, as well as the purchase rate if you aren’t able to pay off your balance each month.

“Most frequent flyer credit cards will have a high interest rate, so it’s important to repay your balance in full each month,” said Canstar’s Ratings Manager, Joshua Sale.

“If you’re likely to carry some debt on the card, you might want to consider looking at low rate credit card options instead, because any interest you accrue is likely to outstrip the benefits obtained from the card,” said Mr Sale.

2. Consider sign-up bonuses

Many providers offer large sign-up bonus points for new credit cards. You can check out some of the latest offers in our credit card bonus offers article.

Be sure to check if any conditions apply – for example, some providers will require you to spend a certain amount of money within a set time period to get the extra points. Also be careful to not sign up for a credit card based purely on the sign-up offer. Consider the overall impact of a credit card on your finances before applying, taking into account factors such as its interest rate and annual fee, and whether a credit card is appropriate for your situation more generally.

As a general rule, it’s best to avoid applying for lots of credit cards to get sign-up points. This will be recorded on your credit record and could have a negative impact on your credit score, which may make it more difficult to get credit in the future.

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3. Could you use your card for some everyday expenses?

Consider using your credit card to pay for everyday or recurring expenses such as groceries, petrol, electricity, internet and phone bills. However, if you do this, make sure you can pay off your balance in full each month. If you only make the minimum repayment on your credit card each month, you could be charged a large amount of interest on these expenses and interest could continue to build up over time.

“Work out how much you spend in a typical month and find a card that maximises the frequent flyer points you will earn based on that spend level,” Mr Sale advised. “And be mindful of monthly spend caps.”

Remember, only ‘eligible’ purchases will earn you points. For example, generally you can’t earn points on cash advances, interest payments, banking fees and charges or gambling. Check the T&Cs with your credit card provider, and read the Target Market Determination (TMD) and Product Disclosure Statement (PDS) that apply.

4. Shop at partner retailers

Qantas, Velocity and other frequent flyer programs allow you to earn points by shopping with their partner retailers or using partner services. If you use your credit card to pay, this could boost your points balance even more. Qantas also has a web browser extension that can help you identify where you could earn Qantas points when shopping online.

You can convert Woolworths Everyday Rewards points to Qantas Points, while Coles’ Flybuys points can be transferred to Velocity Points. When you need to fuel up your car, you can earn Qantas Points by heading to a BP, and Velocity Points for filling up at a 7-Eleven. You can also earn Everyday Rewards points at Ampol and then convert them into Qantas Points.

5. Pool points with family members or your partner

You may be able to enlist a family member’s help with building your points balance.

Most programs will allow you to transfer your points to a family member. Pooling them this way could help you to build enough points to take advantage of a reward you both would like. However, there may be a cap on the number of points you can transfer each year.

You could also consider getting a joint credit card with a family member or partner or adding them as an additional cardholder on your credit card. Bear in mind that as the primary cardholder, you will be responsible for the additional card and will need to pay for transactions made. You may also need to pay an annual fee for each additional cardholder.

6. Factor in any ‘free’ extras

“It may be worth finding a card with additional perks or bonuses to help offset some or all of your annual fee,” said Mr Sale.

“An example would be cards that may have an annual fee of around $200, but provide you with an annual free return domestic flight or a travel credit. This can be beneficial if you travel regularly,” he said.

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7. Consider other points-earning products

Although it’s not a credit card hack per se, another way of earning points is to take out other financial products that offer frequent flyer points.

You can earn Qantas Points on Qantas Insurance products such as health insurance, car insurance, home insurance and travel insurance. Qantas currently offers a variety of deals to earn extra points when you join up, including one point for each dollar spent on your premiums. The Qantas Wellbeing App also lets you earn points for everyday activities like going for a run, swim or cycle. Qantas has also partnered with some home loan providers such as Qudos Bank and La Trobe Financial, so you could earn Qantas Points for paying off your home loan.

Similarly, you can earn Velocity Points by taking out certain products with their partnered providers, such as home insurance, travel insurance, and home loans. Velocity has partnerships with Medibank, Medibank Pet Insurance, Cover-More travel insurance, and uno home loans.

Of course, you shouldn’t decide to take out or switch financial products based on earning frequent flyer points alone. It’s more important to consider the price and features of each product and whether it will suit your circumstances and needs. Canstar’s Star Ratings may help you to determine if a product represents good value overall.

8. Spend your points wisely

When it comes time to redeem your hard-earned points, make sure you get the best value out of them. You can redeem your Qantas Points not just for domestic Qantas flights but also international travel with Qantas or their partnered airlines such as Qatar Airways, Japan Airlines and British Airways, just to name a few. Likewise, you can do the same with Velocity Points by cashing them in for flights with Virgin Australia or one of its partner airlines, such as Singapore Airlines or Etihad Airways. However, due to ongoing international travel restrictions still present in some countries, beware of exceptions when redeeming your Velocity points for international flights.

If you manage to pay for your whole flight with points, bear in mind that it may not be entirely free. You may still need to fork out for fees such as government taxes, airport fees and other surcharges. For example, Qantas Frequent Flyer and Velocity Frequent Flyer have ‘carrier charges’ that must be paid in addition to taxes and fees.

“When you do decide to book your flight, get in early,” Mr Sale advised. “The good quality reward seat redemptions can fill up quickly.”

What to watch out for in a frequent flyer credit card

If you decide to take out a frequent flyer card, it’s important to keep track of your spending and pay your credit card on time to avoid interest or late payment charges. Remember that frequent flyer cards can typically have higher interest rates and annual fees than non-rewards cards. Be careful to not overspend on your credit card in order to earn more rewards points.

While you’re busy building up those points, don’t forget that they may have an expiration date. Qantas Points currently expire if you don’t earn or spend any points for 18 months, while Velocity Points expire after 24 months of inactivity. Due to the impact of COVID-19, Velocity Points will not expire before June 30th, 2023, even if you have been inactive for over 24 months. Other programs may have ‘hard’ expiry dates, where points will expire after a set period of time, regardless of your activity. For example, Emirates Skywards Miles are valid for three years.

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