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Are you considering applying for a frequent flyer credit card or looking to get the most out of your points? Here are eight credit card points hacks for everyone from beginners to experienced savers.
1. Look for the right credit card
One of the most important factors in choosing a frequent flyer credit card is the amount of points you earn per dollar spent. This is known as your ‘earn rate’, which varies depending on the institution that supplies your credit card and the frequent flyer program it’s partnered with.
It’s also important to consider the card’s annual fees and the purchase rate.
“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 Group Manager, Research, Ratings & Product Data, 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.”
You can compare cards that earn Qantas Points and Velocity Points with Canstar.
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 credit card bonus offers here. These can be a helpful way to build your points balance, but it’s particularly important that you understand the fine print.
The generous sign-up bonuses offered by some credit cards have led to a practice known as ‘credit card churning’ or ‘flipping’. This involves frequently opening and closing credit cards to take advantage of rewards and perks. This approach can be risky and is generally not recommended, it does, however, highlight the value of regularly reviewing and comparing credit card options.
It’s important to be cautious here: applying for multiple cards in a short period can affect your credit score, increase the risk of missed repayments, and lead to additional fees or debt if not managed responsibly.
You can check your credit score for free with Canstar or via the Canstar App.
3. (Responsibly) use your card for everyday expenses
With a frequent flyer credit card, you earn points for every dollar spent on eligible purchases, so it makes sense to pay as many eligible expenses with your card as possible—provided you’re paying off the monthly balance. This could include groceries, petrol, utility bills or even your rent.
“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. 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 Key Facts Sheet 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 for these products, you could boost your points balance even more. Both Qantas and Velocity offer web extensions to notify you if points are available 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.
You don’t need to limit yourself to one frequent flyer program and its partnered retailers. By holding an account with both Qantas and Velocity, you can ensure you’re getting points regardless of where you shop. In fact, you might even find yourself getting unique promotions and offers to encourage you to choose one over the other.
5. Pool points with friends and family
You may be able to enlist your family or friends to help build your points balance. Most programs allow you to transfer your points to someone else to help you to build enough points to take advantage of a reward you both 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 any 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”.
7. Consider other points-earning products
A credit card is far from the only way you can collect frequent flyer points. If you know where to look, you can find promotional offers on plenty of commonly used financial products.
For example, you can earn Qantas Points on Qantas Insurance products such as health insurance, car insurance, home insurance and travel insurance, and their Wellbeing App lets you earn points for everyday activities like going for a run, swim or cycle. Qantas has also partnered with certain 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 partnered providers across 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
The key to getting value out of your frequent flyer program isn’t just building up your points, but also knowing how to spend them. Typically, flight rewards are considered better value than things like gift cards, car hire and hotels, although this will vary.
According to Australian Frequent Flyer, the best value for money with Qantas is on international upgrades from business to first class, while the best value for Velocity is an international business class reward seat. Both rewards programs share gift cards as their lowest value reward.
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 bill on time to avoid interest or late payment charges. Remember that frequent flyer cards 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. 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.
