Review: NAB Qantas Rewards Visa Signature credit card

Introduction

Pairing 100,000 bonus Qantas Points for eligible new customers, an earn rate of up to one Qantas Point per dollar spent where Visa is accepted and extra points on Qantas flights and Qantas Club memberships is NAB's top-of-the-line Qantas Rewards Visa Signature credit card.

There's also a plethora of insurance coverage whether you're travelling or are merely shopping in your home city, and with NAB's 'instant digital card' feature, you could begin spending (and earning points) on the same day you're approved, without waiting for the physical plastic card to arrive in the mail.

NAB Qantas Rewards Visa Signature credit card: fast facts

• Grade/tier: Black
• Card type: Visa Signature
• Loyalty program: Qantas Frequent Flyer (direct earn)
• Qantas Points earned per dollar spent: 1.0 up to $5,000 per month; then 0.5/$1 on spends of $5,001-$20,000 per month. No points are earned on ATO payments.
• Bonus Qantas Points: Earn one extra Qantas Point per dollar spent when purchasing Qantas flights and Qantas Club lounge memberships direct from Qantas, in addition to the 'normal' earn rate above.
• Points capping: Points are not earned on purchases exceeding $20,000 per monthly statement period, except for bonus points on eligible Qantas transactions which are uncapped.

Fees, charges and interest:

• Annual fee: $395
• Additional cardholder fee: $0
• Interest rate on purchases: 19.99% p.a.
• Interest-free days on purchases: Up to 44
• Interest rate on cash advances: 21.74% p.a.
• International transaction fee: 3%
• Minimum income requirement: None defined
• Minimum credit limit: $15,000

Earning points for free flights:

Get things off to a flying start with 100,000 bonus Qantas Points, offered to new cardholders who apply by February 25 2018, are approved and spend at least $3,000 on everyday purchases within 60 days of opening the account.

That's enough points for two business class upgrades on flights from Australia's east coast to destinations like Singapore and Hong Kong when booked on the lowest-cost upgradeable economy fares: either covering a return trip for one passenger, or two passengers being upgraded together on the same flight (as always, subject to availability).

An earn rate of one Qantas Point per dollar spent up to $5,000 per month also isn't to be sniffed at, although for just $30 more in annual fees (and with no annual fee in the first year), the competing ANZ Frequent Flyer Black Visa provides the same number of points per dollar spent up to a higher $7,500 per month.

That said, you can earn up to two Qantas Points per dollar spent on eligible purchases made directly with Qantas via both NAB and ANZ – over and above what you'd receive from the flight itself – so whichever you choose, you'll be well-rewarded for your travels.

Heavy spenders, just note that NAB's card provides no points on everyday purchases exceeding $20,000 per monthly statement period.

Airport lounge access:

Complimentary airport lounge access isn't included with this card, but you can earn an extra Qantas Point per dollar spent on your Qantas Club lounge membership (in addition to the applicable 'everyday' earn rate) when paying your membership fees using the NAB Qantas Rewards Visa Signature card.

Inclusive travel insurance, purchase protection:

NAB's suite of insurance covers includes complimentary overseas travel insurance when you charge at least $500 of your pre-paid transportation, accommodation and/or land tour costs to your NAB Qantas Rewards Visa Signature card prior to commencing your international trip.

That gives you the flexibility to either use the card to pay for your airfares, or to book those flights with frequent flyer points and simply use your card to pre-pay some of your hotel costs before jetting off, while still being covered.

There's also transport accident insurance, interstate flight inconvenience insurance, purchase protection insurance, extended warranty cover and price protection insurance, plus domestic hotel burglary insurance, which is a welcome yet rarer inclusion when it comes to credit card cover.

Rental vehicle excess cover also forms part of the 'overseas travel insurance' and 'interstate flight inconvenience insurance' protections, but may not apply when hiring a car independent of an interstate or international flight, so as with all these insurance inclusions, contact NAB or QBE (the policy underwriter) to determine if the cover meets your needs.

NAB Qantas Rewards Visa Signature credit card: the verdict

With an earn rate of one Qantas Point per dollar spent up to $5,000 per month, extra points on transactions made with Qantas and a solid sign-up offer of 100,000 bonus Qantas Points, there's plenty to like about NAB's Qantas Rewards Visa Signature credit card.

However, with an annual fee of $395, you'll want to make sure you're getting your money's worth.

If you primarily shop where American Express is accepted, you don't spend much everywhere else and are seeking a 'backup' card to use in those circumstances, the more affordable HSBC Platinum Qantas Visa comes in at $199/year and also gives up to one Qantas Point per dollar spent, just up to $2,500 per month as opposed to a higher $5,000 threshold with NAB.

That said, NAB offers a handy 'instant digital card' feature for Android users, where their smartphone can be used to make purchases of $100 or less in-person where contactless payments are accepted, even on the same day as being approved for the card.

For savvy shoppers, that provides an early start on the $3,000 spending requirement to earn those 100,000 bonus points, and as the card awards points on everyday purchases separately to that bonus, is an easy way to begin scooping up as many points as you can.

(Once you've received your PIN, you can also use your instant digital card for most in-store purchases exceeding $100 where a PIN is required.)

The same feature also reduces the headache of losing a card, having one stolen or the card number compromised, because you'll be able to continue spending (and earning points) via your 'instant digital card', while waiting for your replacement physical card to arrive: or just for everyday purchases without reaching for your wallet.