The Best Frequent Flyer Credit Cards - 2023 Edition
Updated 19 July 2023
Summary:
What are the options for someone looking to earn frequent flyer perks but not overpay on a card fee?
We argue that American Express is the only credit card issuer interested in providing value-for-money when it comes to frequent flyer credit cards. Specifically:
Our guide covers:
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Know This First: If you're looking for credit card that will earn points or miles with a specific airline, our dedicated guides have you covered:
Summary:
- New Zealanders typically signing up for a frequent flyer program will choose Air New Zealand's Airpoints program. This is because it's easy to earn points (known as Airpoints Dollars) given Air New Zealand has a huge domestic flight network. The program also has many partners - supermarkets, petrol stations, insurers and other retailers where you can earn Airpoints Dollars by spending money.
- While Airpoints is very convenient to earn and redeem rewards, it's not always the most rewarding - Air New Zealand is often criticised for being expensive and you can't book business class award flights at any discount unless you're a Gold-level frequent flyer.
- This guide looks at the frequent flyer credit cards available in New Zealand and shortlists the best options available and explains why they deliver value above the alternatives.
What are the options for someone looking to earn frequent flyer perks but not overpay on a card fee?
We argue that American Express is the only credit card issuer interested in providing value-for-money when it comes to frequent flyer credit cards. Specifically:
- For Air New Zealand, AMEX's popular Airpoints Platinum card earns close to twice the number of Airpoints Dollars for every $100 spent compared to any bank card. This makes it an unrivalled card, and even more so when you factor in all the travel benefits it offers.
- When it comes to other airlines, again, only AMEX offers a frequent flyer credit card that syncs with the programs of Qantas, Emirates, Qatar Airways, Singapore Airlines, Cathay Pacific and Malaysian Airlines. There are two cards - the Gold Rewards Card and, for serious spenders, the Platinum Charge Card. However, we argue that most New Zealanders will be more likely to consider the gold card (which we have extensively reviewed)
Our guide covers:
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X
X
Know This First: If you're looking for credit card that will earn points or miles with a specific airline, our dedicated guides have you covered:
MoneyHub Founder and Head of Research Christopher Walsh shares his views about frequent flyer credit cards
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"Frequent flyer credit cards are at worst expensive to hold and, at best, wonderfully lucrative. The trouble is that most people have a sub-standard card that rewards the issuer more than the cardholders.
It's frustrating to see some banks charge 2% as an FX fee (for doing nothing other than charging you that fee, given Visa or Mastercard processes the transaction on the banks' behalf) while giving you less than 1% back in rewards. The devaluation of the banks' Airpoints-earning Platinum cards in late 2022 (LINK) doesn't give me confidence in the future of many credit cards, and I'm not impressed what the annual fees have stayed high despite the rewards earning rate being cut by at least 40%. The reality is frequently flyer credit cards will reward those who spend more than average given all the bills convert into points, miles or Airpoints Dollars at the end of each month at a fixed rate. If you spend $2,000+ on a credit card every month, then frequent flyer cards have benefits, but there are still some poor-value options pretending to be convenient options. We've published this guide to challenge the status quo and bring transparency to everyday New Zealanders looking for a better deal for themselves at the end of every credit card billing cycle. One thing - if you risk being unable to make repayments in full every month, the interest you'll be charged (over 20% p.a.) will wash away any rewards values. For this reason, I strongly suggest considering to avoid applying for a credit card altogether". |
Christopher Walsh
MoneyHub Founder and Head of Research |
The Best Air New Zealand Airpoints Frequent Flyer Credit Cards
Given the banks have scaled back how many Airpoints Dollars they give cardholders for every $100 spent, the favours
We have reviewed the 10+ Air New Zealand Airpoints credit cards on offer, and shortlisted six cards which stand out. We outline the costs, benefits, pros and cons for the following categories:
We have reviewed the 10+ Air New Zealand Airpoints credit cards on offer, and shortlisted six cards which stand out. We outline the costs, benefits, pros and cons for the following categories:
- Best Card for Maximising Airpoints Earning - The American Express Airpoints Platinum Card
- Best 'Pays for Itself' Card - The American Express Airpoints Platinum Card
- Best Card for Families - The American Express Airpoints Platinum Card
- Best No Fee Card for Low Spenders - American Express Airpoints Card
- Best Card for Business - ANZ Visa Business Airpoints
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Christopher Walsh MoneyHub Founder and Head of Research outlines this 'class of its own' credit card for anyone looking for an Air New Zealand frequent flyer credit card:
Christopher Walsh
MoneyHub Founder and Head of Research |
"This award-winning AMEX card earns around double the number of Airpoints Dollars per dollar spent compared to Platinum cards from ANZ, Kiwibank and Westpac. For this reason, it's our 2023 Editor's Choice Favourite Airline Credit Card.
You'll need to spend around $11,500 to offset its $195 annual fee, but with a 300 Airpoints Dollars signup offer, lounge vouchers, and so much more, the value offered is second to none. And, if you're Air NZ Silver, Gold or Gold Elite (or want to achieve it), AMEX's generous Status Point earning opportunities also increase your balance helping your reach the thresholds with less flying. For those spending over $1,000 a month on a credit card and always repay the balance, the AMEX card offers unmatched benefits, such as lounge access, travel insurance, a signup bonus, and the highest Airpoints Dollars earning rate." |
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The Best Qantas Frequent Flyer Credit Cards
- The only credit cards currently available that earn Qantas Frequent Flyer points in New Zealand are American Express cards. These are the American Express Gold Rewards Card ($200/year fee) and the high-end and arguably exclusive American Express Platinum Card ($1,250/year fee).
- Please note, some ANZ and credit cards from other banks historically offered Qantas Frequent Flyer points as a reward for spending, but these are no longer offered to the public. If youwith have one of these cards, you'll continue to earn Qantas points but if you cancel it you won't be able to apply for it again.
- American Express offers two credit cards which earn Membership Rewards Points; both cards earn 2 Membership Rewards Points per NZ$1 spent. You can then convert Membership Rewards Points into Qantas Frequent Flyer Points at a rate of 2:1 (2 Membership Rewards points = 1 Qantas Point). The estimated transfer time is up to one business day, and the minimum transfer amount is 500 Membership Rewards Points.
- We calculate that both American Express cards effectively earn Qantas Points at a rate of $1 spent = 1 point, given the American Express earning rate ($1 = 2 Amex points) and the conversion rate (2 Amex points = 1 Qantas point).
- However, you won't earn Status Credits on any Amex card, so if you want to retain (or progress to) silver, gold or platinum, you'll need to fly Qantas. This is the case with Qantas credit cards globally - none offer the ability to earn Status Credits.
What can I earn with a Qantas Frequent Flyer Credit Card?
Per our guide covering the best ways to spend AMEX points:
More details: AMEX Gold Rewards Card Review
- Luxury flights offer the best rewards, given the high cost of paying cash for any airfare which can be avoided if you have enough points.
- Auckland to New York (one way), Qantas Business Class (126,500 Qantas points) is a leading flight reward for anyone earning Qantas Frequent Flyer points when spending with a NZ-issued AMEX credit card.
- You'd need to spend $126,500 on your card (given the earning rate of 2 per $1 spent and the transfer rate to Qantas of 2:1); there's no required timeframe to do this in as as AMEX points don't expire unless you cancel your credit card.
- Given the estimated $5,000 value of the flight, every $1 spent on your AMEX Card would give you a return of approximately 3.95 cents (or 3.95%) in the form of this specific Qantas flight.
More details: AMEX Gold Rewards Card Review
The Best Emirates, Qatar Airways, Singapore Airlines and Cathay Pacific Frequent Flyer Credit Cards
As above (Qantas flow)
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Frequently Asked Questions
(covering specifics around FFP, not specific to credit cards)
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