What’s on offer for flight rewards credit cards?

Co-author: James Slack

Attention jetsetters! Whether you travel for business or you’re planning your next holiday, an airline rewards card lets you accumulate points that you can use on your next trip.

We’ve taken a look at what rates and features are on offer for flight rewards credit cards.

Why get a flight rewards credit card?

If you are looking for a new credit card, an airline rewards card might suit you if some of these statements apply to your spending habits:

  • You pay your closing credit card balance in full each month (interest rates on flight rewards credit cards are often around 20% p.a.).
  • You want to earn points to redeem for flights (whether domestic or international).
  • You are already a member of a flight rewards scheme and want to boost your points balance (e.g. Air New Zealand Airpoints program).

A frequent flyer credit card may not be for you if:

  • You rarely pay off your balance in full or only use your credit card occasionally.
  • You want to redeem your points for cash, gift cards, or shopping vouchers.
  • You want benefits such as travel insurance but aren’t particularly interested in earning points that you will never redeem.

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What is on offer for flight rewards credit cards?

The average annual fee on a flight reward credit card is $226, but the value that you get back in flights will depend on how much you spend on the card. The table below shows what average return in flights (measured in dollars) you can expect to get at different levels of annual spending.

Annual Spending Average Flight Return
$12,000 $125
$24,000 $250
$60,000 $625
$120,000 $1,249
Source: www.canstar.co.nz

Should I get a flight rewards card?

For keen travellers, earning free flights just for spending your own money is a great incentive to sign up for a flight rewards credit card.

Remember that rewards cards don’t suit everyone. Make sure you do your research and review all rates and product information before you take flight and choose a card. You can compare flight reward cards on the Canstar website:

Compare Credit Card Rewards

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