Australian Capital Territory Frequent Flyer Credit Cards

Frequent Flyer Credit Cards

When it comes to finding the right credit card Australians need for their day to day affairs, one of the more interesting is the frequent flyer credit cards. Just like many other types of credit cards, what makes this unique is the type of rewards program that it offers.

Around the world, millions of people use the frequent flyers rewards that these credit cards offer in lieu of other recompense. However, whether this makes frequent flyer credit cards Australians will use will depend on their particular needs.

What are Frequent Flyer Credit Cards?

This is a credit card that uses frequent flyer miles as a reward for making purchases. The more times a person uses the credit card for buying items, the more miles that are added on to their airline flights so that they can save money on purchasing tickets.

The frequent flyer program has been around for decades and was originally used to reward business travelers who often flew one or more times each week. Instead of actually flying, a person can use the rewards on each credit card purchase to add up the miles.  In this manner, a person might be able to fly for less money or even fly for free to certain destinations.

Advantages and Disadvantages of Frequent Flyer Credit Cards

When it comes to getting frequent flyer miles for your credit card rewards, the advantages will center on the value you place on this particular type of reward. Most people will need a good to excellent credit rating in order to qualify for this type of card.

For those who fly with the airlines quite a bit, then you probably will find plenty of advantages when using this particular card. In addition, for those who enjoy flying someplace once a year for their big vacation having this type of reward can save you a significant amount of money. Obviously, if you have no interest in racking up frequent flyer miles, then you certainly have no need for this type of card.

Another disadvantage is that in order to actually get the miles most companies require that you pay off your balance in full at the end of every month. While this is good advice for most Australian credit card holders, it may not be very convenient and missing a month or two might cost you considerably when it comes to the rewards.

Also, the interest rates tend to be higher on this type of credit card meaning that you will have to balance use the card versus saving up the extra money by using a lower interest card and applying that toward your next vacation.

Overall, choosing this type of card will depend largely on just how much you fly, your credit rating and whether you gain more through the program that often has a higher interest rate as compared to using a lower interest card and saving up the difference. If you are not a frequent flyer nor do you fly often for vacations, then you are probably better off with a lower interest credit card.