Frequent flyer credit cards
Get bonus points offers, flights, upgrades, lounge access and more when you spend on a frequent flyer credit card.
How do frequent flyer credit cards work?
You can use a frequent flyer credit card to earn points on everyday, eligible purchases. These cards are linked to an airline loyalty programme (such as Aer Lingus’ AerClub) and offer a set number of points per €1 you spend (such as one point per €1 spent). Many cards also come with introductory bonus points, which can give your rewards balance a quick boost. Once you’ve earned enough points, you can redeem your points for flights, lounge passes, accommodation and more.
Are frequent flyer credit cards worth it?
A frequent flyer credit card can be a great way to reward your spending with points, but they often come at the cost of high annual fees and interest rates. Before you apply, you can decide if a card is worth it based on the bonus points offer, how many points you’ll earn per €1 spent as well as extra features (such as airline lounge passes or travel credits) compared to the annual fees. The value of these rewards and extra perks should exceed the cost of the card.
What’s the catch with a frequent flyer credit card?
Frequent flyer credit cards have their perks, but these are the traps you should watch out for:
- High annual fee. Many frequent flyer credit cards come with an annual fee that can add up to around €100. You need to make sure that the yearly value of the reward and extra perks of the card can outweigh these fees.
- Promotional offers and spend requirements. You usually need to spend a specific amount in a set period to take advantage of bonus points offers. Before you’re enticed by the idea of thousands of bonus points, make sure that these spend requirements aligns with your budget and that you can still afford to pay it off in full.
- Higher interest rates. Frequent flyer credit cards usually have high purchase interest rates between 17% and 25%, so they are best suited to cardholders who can pay off their balance in full each month. Otherwise, the interest you’ll collect could easily outweigh the value of the rewards.
- Temptation to spend. If you do struggle to stick to a budget and pay your balance in full each month, the promise of frequent flyer points could tempt you to overspend. If this is the case, you might want to consider a low interest rate credit card instead.
Who are frequent flyer credit cards best suited to?
Frequent flyer credit cards are designed to suit regular spenders who usually pay their balance in full each statement period. This is because you’ll earn more points based on how much you spend, but your rewards won’t be outweighed by interest if you clear your balance each month.
They’re also designed to benefit frequent travellers who will make use of the extra features such as airline lounge passes, complimentary travel insurance and travel credits.
How can I get approved for a frequent flyer credit card
Like all credit cards, you’ll need to meet eligibility requirements to receive approval for a frequent flyer credit card. The application criteria could include a minimum annual income amount, Australian residency status and credit history details. However, as these are premium products, you may find that some of frequent flyer cards have higher income requirements than other options.
If you’re eligible to apply, you’ll also be required to provide documents including payslips and proof of identification. The bank will then assess the details and documents you provide to determine if you’ll receive approval or not.