Frequent Flyer Credit Cards

Updated 11 August 2020

Frequent flyer credit cards allow cardholders to earn frequent flyer points on their card spending, which can then be redeemed within their frequent flyer programme.

Depending on the programme, redemption options may include flights and upgrades, car rental and accommodation, gift cards and merchandise. Frequent flyer cards may also offer access to a variety of travel-related features, such as travel insurance, airport lounge passes and hotel stays.

Low Cost Frequent Flyer Cards

These cards generally come with a low annual fee or account fee. They may also feature a low purchase rate. They will usually be basic, with few features on offer. These low cost cards tend to suit cardholders with a lower annual spend, as they will typically offer a low earn rate, and sometimes a low points cap. However, with a low annual fee, it makes it easier for smaller spenders to find value in the points they earn.

Classic Frequent Flyer Cards

These cards tend to offer an earn rate that is higher than low cost cards, and lower than platinum cards. Typically keeping features to a minimum, they also have an average annual fee. These cards generally suit cardholders who spend a bit more on their card, taking advantage of a higher earn rate to get more back in points value than they pay in annual fees.

Platinum Frequent Flyer Cards

Platinum cards usually offer the highest earn rate within the range, unless there is a black card on offer. Platinum and black cards typically have higher annual fees, so tend to suit bigger spenders. These cardholders make good use of the higher earn rate on offer to earn more points, making that higher annual fee worthwhile. Extras such as travel insurance and airport lounge access can also add value to these cards.

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Types Of Frequent Flyer Credit Cards

While there are dozens of frequent flyer programmes the world over, the most popular programme here in New Zealand is Airpoints. As Air New Zealand’s loyalty programme, Airpoints offers free membership that allows members to earn Airpoints Dollars, which can be spent on Air New Zealand flights and upgrades, flights with partner airlines, and retail options with partner retailers and within the Airpoints Store.

To find out more about the Airpoints programme, check out our Airpoints Credit Cards.

If you want to earn Airpoints Dollars, there are plenty of frequent flyer credit cards to choose from. Here are some of the different types of cards, and who they tend to work best for.

Frequent Flyer Card Features

While some frequent flyer cards keep features basic, others offer all kinds of extras. The value of these extras will usually depend on the card’s annual fee. Here are some features to look out for.

Travel Insurance

Complimentary travel insurance is a common feature found on this type of card, providing cardholders with cover as they travel. Typically only offering cover overseas, these policies may cover medical expenses, personal belongings such as luggage, legal liability and car rental excess. Always check the PDS for conditions.

Airport Lounge Passes

Making air travel much more comfortable, airport lounge passes are a common feature on platinum and black frequent flyer cards. Cardholders may be provided these passes as standard, or they may have to earn them by spending a certain amount on their card.

Travel Extras

Frequent flyer cards are geared towards the frequent traveller, which is why their features tend to relate to travel. Some travel extras that may be featured include complimentary hotel stays, flight upgrades, airport assistance, personal concierge services and airport limo transfers.

Points Plus Pay

Allowing cardholders to cover rewards they don’t have the points to pay for in full, frequent flyer cards often offer a ‘points plus pay’ option. This allows them to make up the difference in cash. Airpoints offers Flexipay, as well as Airpoints Dollars Advance, which acts as a kind of overdraft, providing points in advance, which can then be paid back in future earning.

Tips For Using A Frequent Flyer Credit Card

Only Spend What You Can Afford To Pay Back

When you are part of a rewards programme, it’s all too tempting to earn more, more, more. With a frequent flyer credit card, the obvious way to earn more is to spend more. But, there is no point overspending and getting into debt for the sake of a few rewards. Be smart and spend only what you can afford to pay back at the end of the month.

Clear Your Balance Each Month

Making the most of a frequent flyer card means squeezing all the value you can out of it. If you are paying interest on your balance, you decrease the value of the points you earn, and may even pay out more in interest than you get back in rewards value. Always clear your balance by the due date each month, to take advantage of your card’s interest free period on purchases.

Channel Your Spending Towards Your Card

Rewards cards suit big spenders. If you want to get the most points out of your card, it can help to channel as much spending as possible through it. This could mean paying your mobile phone bill or your utility bill with your card, as well as all the little purchases such as your morning coffee. Just make sure you stay on top of your spending and don’t go over your limit.

Time to check out the frequent flyer cards we have on offer? Making it easy to compare earn rates, annual fees and features, CreditCard.co.nz is your go-to for comparing frequent flyer cards. Then it’s simply a matter of click and apply.

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