Credit cards should always be treated with caution. But if you can use them responsibly and choose one that matches your lifestyle, a credit card may be able to help you reach your financial goals.
With that in mind, Sabine* recently took out a Qantas Premier Platinum credit card from Qantas Money, because she regularly flies interstate and internationally with Qantas.
As a sign-on bonus, Sabine can earn up to 120,000 bonus points in the first six months^. During that six-month period, she can earn 20,000 points during each month when she spends $1,500 on eligible purchases (does not include cash advances, balance transfers, refunds, chargebacks and special promotions).
Sabine will also pay a reduced annual fee of $199 in the first year, compared to the regular annual fee of $299.
Another bonus is that Sabine can get six months interest-free on the first Qantas purchase she makes, provided the purchase is made within the first six months of Sabine having the card. Qantas purchases include Qantas flights, Qantas gift vouchers, Qantas Frequent Flyer and Qantas Club memberships, and purchases from qantasstore.com.au and qantasepiqure.com.au.
Qantas Premier Platinum earn rates
It’s important to compare the cost of a credit card to the benefits it provides, to help you work out if it can provide you with value.
In Sabine’s case, the Qantas Premier Platinum credit card includes a purchase interest rate of 19.99 per cent and a maximum interest-free period of 55 days. Cardholders must have an annual income of at least $35,000.
When Sabine spends domestically, she can earn 1 Qantas point per $1 for the first $10,000 during each statement period and 0.5 points for each $1 spent above that $10,000 mark.
Sabine’s international spending can earn her 1.5 Qantas points per $1.
When Sabine spends on Qantas, she can also earn 1 bonus point per $1.
Qantas Premier Platinum benefits
Another reason Sabine chose the Qantas Premier Platinum credit card was because she was attracted to the benefits offered by Qantas Money.
These benefits include free travel insurance and access to Qantas Premier Concierge, with conditions applying to both benefits.
Each year, Sabine can get two free lounge invitations, which can be used at domestic Qantas Club and international Qantas-operated business lounges.
Sabine can also use a 20 per cent discount once per year, for selected Qantas and Qantas Link domestic flights. Sabine can use the 20 per cent discount for up to nine tickets, provided she is one of the nine passengers and that they all travel together on the same booking number, same day and same flight.
Do your research before taking out a credit card
While Sabine decided that the Qantas Premier Platinum credit card was suitable for her, there’s no guarantee it will be suitable for you.
Some Australians would get more value from another credit card; others would be better offer not having a credit card at all.
That’s why it’s important to compare credit cards and do your research before taking out a credit card. As with all financial products, it’s usually a good idea to seek professional financial advice as well.
* Sabine is not a real person. This is a hypothetical case study.
^ The Qantas Premier Platinum data in this story is accurate as of 10 October 2019.