Using credit cards to make travel cheaper and more fun
Using rewards points for free flights, upgrades and hotels
Quick things to know about travel credit cards:
- The more points you'll earn, the higher the annual fee is likely to be.
- You may have to spend a certain amount to earn the bonus points.
- Some cards may reduce the points per dollar after you've spent a certain amount in a month.
- Weigh up the annual fee, value of the points and any other costs to decide if you'll get value out of the card.
With the right card, you can also get something back on your spending in the form of rewards. Yep, you can earn rewards on this trip, which could help cover the cost of the next trip you take. Not only that, you can also benefit from added travel perks, such as the luxury of airport lounge access and the convenience of airport transfers, as well as essentials like travel insurance.
So, what do you need to know as you go about booking last-minute travel with your card? In this post, we’re going to look at each of the biggest travel rewards programs in Australia to find out what they have to offer, and how you can use them to your advantage. We’ll also get into how you can boost your points earn, while benefitting from all those lovely travel perks.
Who offers travel credit cards
There's no shortage of providers in Australia who offer travel credit cards. Depending on whether you want points or perks, take your pick from:
- Qantas Points earning credit cards
- Velocity Points earning credit cards
- Amex Credit Cards
- Altitude credit cards
- ANZ Rewards credit cards
- CommBank Awards credit cards
- NAB Rewards credit cards
- Citi Rewards credit cards
How to boost your points
How to earn and use Status Credits
How to redeem your rewards points
- Frequent flyer miles with another program.
- Partner hotels or car rental agencies.
- Merchandise like electronics, retail, dining and services.
- Concierge services.
- Purchases you've previously made, almost like a cashback program.
How to use credit card points for flights?
Depending on what rewards program you've signed up for, you will be able to use your points in a number of ways. For Qantas and Virgin simply start booking your flight while logged into your account. You'll be able to toggle "Points plus pay" when selecting a flight.
For other programs you will probably need to transfer the points out to your chosen program and then book with that airline. One of the best things about this method is that you're not locked into the two major Australian Airlines. It may cost a few more points, but if you really want to fly with Singapore Airlines or Etihad, you'll have those options available
Other nice features to look for
- Discounts on hotels, car hire or holiday packages
- Travel insurance and/or rental vehicle excess insurance
- Airport lounge access
- Waived currency conversion fees
- Bonus points for spending with certain travel partners
I'll explain each feature briefly to show you how it works.
Complimentary travel insurance
Travel insurance generally covers Australian trips, overseas trips or both. Every policy is different, but standard cover includes emergency medical assistance, cancellation cover and unforeseen changes to your trip. Be sure to read the terms and conditions carefully before you travel.
Usually your travel insurance automatically activates when you meet certain criteria. That might look like:
- Buying your return flight on the card
- Spending at least $500 on flights, accommodation or trip costs
- Being under the restricted age limit (most insurances cut off at 79 or 80 years old)
- Being an Australian citizen
That's just a snapshot, and you'll need to read the eligibility section in the card's T&Cs to make sure you're covered.
✈ Airport lounge access
💸 Waived currency conversion fees
💼 Concierge services
Emergency card replacement
Using a 0% purchase offer instead of rewards points
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Before you go (literally)
- Weigh up the cost of annual fees.
Cards with loads of features and points generally have higher annual fees. Will you earn enough points and use enough features to make the card worth it? - Avoid interest.
Interest kills value on any card, but especially on high interest rewards cards and premium cards. Always pay off your card balance before it attracts interest. - Stick to one rewards program.
You'll usually get more value if you concentrate on one rewards program instead of many. Look at programs that offer points transfer options if you need more variety. - Choose different cards for different tasks.
Rewards cards work best as rewards earners, and may not be flexible enough to cover all your bases. It may have high currency conversion rates or not include travel insurance. So, it's ok to consider more than one card to make your travel cheaper overall (just watch out for annual fees). - Don’t overspend. This is especially true if you have a number of cards on the go. Don’t be tempted to spend simply because you have available credit. Keep track of spending using your card’s app, and set a manageable budget.
Still reading? Here's my tips!As you can see, each program offers something different. So, if you want to choose the right program for both your spending style and your travel aspirations, you will need to dig a little deeper into each of the programs – and their affiliated credit cards – to really get the most out of what’s on offer. Here are some important things to look out for as you compare options:
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Marie
18 June 2022Pauline
20 June 2022