How to Choose an Airline Credit Card

You might be wondering, "I want a credit card that earns points with an airline but where do I start?". You don't need to be dazzled by the choice of credit cards, the fees and rates, or points systems. Find out what to look for when you compare and review credit cards.

Can I get a credit card that is linked to an airline program?

If you spend a considerable amount on your credit card from groceries, household bills, fuel for your cars, eating out, going to the cinema and other entertainment expenses then you're going to be set. However, a big mistake people can make is to earn all those nice airline points but not pay off the credit card balance every month. In doing so, the overall value of having an airline credit card will be effectively canceled out. Sure, you've earned 50,000 points by the end of the year but you've been paying interest on a large balance that's been left outstanding month to month. Don't do it. Make sure you can order your personal finances so that you pay off the credit card every month.

Before applying for an airline linked credit card you need to ensure that you meet the minimum criteria for approval otherwise you're credit card application will be rejected. Typically, you must be a resident or citizen of Australia, be 18 years old + and have a minimum income of a reasonable amount. You can get all of the details on the credit card offer pages - click through from the comparison tables.

What details should I look out for?

You need to sweat the financial stuff. Compare and review each of the credit cards that you're interested in paying careful attention to the annual fee, interest rate on purchases and balance transfer rate, if you need that. You want the annual fee to be as low as possible, the interest rate on purchases also low and the balance transfer low if you need it. These are the main financial features to consider before we get to the airline points earning potential.

Points Points Points

Credit cards with the best frequent flyer points earning potential are the next thing to consider. Some credit cards have one account with the issuer but have two cards - an Visa card or Mastercard for everyday items and an Amex card which earns points at a greater rate.

Other credit cards such as the Singapore Airlines Westpac Platinum Card start you off with 10,000 points straight after your first purchase. Qantas Frequent Flyer program lets you earn points on the flights you book plus a whole range of other ways including paying for your bill at selected restaurants where the $1 to points ratio is as high as 1:3.

Other points features to note are points capping which limits the amount of points you can earn and 'points expiring' which puts a time stamp on those points.

Where do I want to go?

Some airline credit cards have very strong financial features (low interest rates and low fees) and offer really great benefits but are tied to only one or two airlines. If those airlines fly to where you want to go than that's great! If not, you'll be better served by getting a credit card linked to a bigger airline such as Qantas or Singapore Airlines (with its network of partner airlines) that can fly you to destinations worldwide.