What credit score do I need for a Qantas Ultimate American Express Card?

• You need good credit to qualify for this card.
• You'll need an annual income of $65,000 or more to get approval for their rewards points and travel benefits.
• The Qantas Ultimate American Express Card's high annual fee is compensated by travel credits and many rewards points and benefits.

The Qantas American Express Ultimate Card offers a variety of ways to earn Qantas points and travel benefits. The high annual fee is compensated by these bonuses and other perks.

Who is the Qantas American Express Ultimate Card for?

The Qantas American Express Ultimate Card is a rewards card designed for people who are looking to build up Qantas Points on their spending so they can enjoy the premium travel benefits, insurance benefits and access to Qantas and American Express (AXP) lounges. This card is intended for people who have an annual income of more than $65,000 and may carry over substantial balances over a long period. It is a right fit for you if you can make repayments on the card without undergoing financial hardship.

What credit score is needed for the Qantas American Express Ultimate Card?

American Express does not specify other than to say applicants must "pass responsible lending checks". As typical with most card issuers, this means having a credit score of good, very good or above.

In Australia, credit scores are allocated by the three credit bureaus, Experian, Equifax, and illion. Both Experian and Equifax regard a score of around 625 or more as ‘Good’, while for illion it’s 500+. Over 725 is definitely ‘Very good’ at all three bureaus.

How hard is it to get the Qantas American Express Ultimate Card?

You are eligible to apply for this card if:

• You are 18 years or older
• Your annual income is $65,000 or more
• You do not have a history of bad debt or default on payments
• You are an Australian citizen, a permanent resident or have a long-term visa.

Key features and perks

Rewards points:

• 55,000 bonus Qantas points
• Up to 2.25 points per dollar spent on eligible Qantas products and services
• 1.25 points on card purchases
• Earn up to three extra points per dollar spent when shopping with Shop Small businesses.
• Earn uncapped Qantas points with a tiered earn rate

Travel benefits

• $450 Qantas Travel Credit
• Two single-entry lounge invitations
• Travel insurance including medical, transport accident, travel cancellation, travel inconvenience and loss or damage to baggage, documents or money
• Discounted airfares

• Up to four additional card members with no extra fee
• Minimum credit limit $3,000

Fees

• Annual fee: $450
• Interest rate on eligible purchases: 20.74%pa
• Balance transfers at 0%pa for 18 months with 1% balance transfer fee
• Cash advance fee: not specified
• Minimum repayment: lower of $30 or 2.5%
• Maximum credit limit: not specified
• Foreign transaction fee: 3%

Pros and cons

How do I apply?

You can apply online with the American Express website. You will be asked for information and documents such as:

• Your Australian Driver's Licence number
• Details of income, expenses and debts
• Payslips as proof of income

Alternatives

FAQs

What happens to my credit score when I apply for a credit card?

When you apply for a credit card, the credit card company uses what is called a ‘hard inquiry’ to check your credit file before making the approval decision. The hard inquiry creates an adverse impact on your credit score, whether or not your application is approved. This reportedly may result in reducing your credit score by between one to five points.

What is a 'good' credit score in Australia?

A good score depends on the credit reporting bodies your bank uses. Different credit reporting bodies—such as Illion, Equifax and Experian—have different credit scoring systems. Some have a system that assigns the highest score as 1,000 while others use systems with a top score of 1,200.

A good credit score from to top credit reporting bodies in Australia is as follows:

How are credit scores calculated in Australia?

Australian credit reporting bodies and worldwide calculate credit scores by allocating values to a number of factors, giving weight to each factor:

• How long you have had a credit file
• The type and amount of credit you have applied for previously
• Negative credit listings on your record
• Any court writs or default judgements relating to you
• Repayment history on your credit accounts including previous overdue or defaulted debts and bankruptcies
• A record of accounts you have opened and closed

In addition to the above the following information is also in your credit report:

• Your age
• Home address
• How long you have been at your current address
• Length of employment with your current employer

To estimate your credit score, credit reporting bodies assign each of these factors a numeric rating.

If I apply for several credit cards in a short period of time, what happens to my credit score?

When you apply for a credit card, the potential lender checks your credit file before approving your application. When they check your credit file, it is called a ‘hard inquiry’ and this adversely impacts your credit score, regardless of whether they approve or decline your credit card application. The records remain in your account for two years and the adverse impact for up to one year.

It is estimated that you lose one to five points per hard inquiry. When you apply for several credit cards within a short time, these hard inquiry impacts will stack up to significantly reduce your credit score.

How do I improve my credit score?

Your credit score enters ‘bad’ territory largely as a result of your own actions. You need to identify these and their impact on your credit score. Another way your credit score is impacted is by errors and fraud. There are also ways to get these corrected.

Improving your credit score is not something you can achieve overnight. It is the result of cultivating good habits and monitoring your credit score.

Here are some ideas to improve your credit score over time:

• Check your credit file by checking your score.
• Obtain and go through your credit reports periodically for accuracy.
• Talk to lenders when you find significant inaccuracies and ask them to remove them from your credit report.
• Make timely payments on loans and credit cards to avoid penalties.
• Use automated services for payments and avoid penalties. Banking apps make these easy.
• Keep your debt-to-credit ratio low on your credit card. Instead of borrowing up to the credit limit, use less than your total available credit. Consider asking for an increased credit limit and borrow well below available credit to improve your credit score.
• Avoid applying for many credit cards within a short period.
• Be reliable and prompt with payments to demonstrate your creditworthiness to potential lenders.
• Using different types of credit responsibly, such as car loans, home loans and credit cards, will help raise your credit score.
• Instead of closing rarely used credit cards, keep accounts open. (Check annual fees first!) Keeping a credit card and using it responsibly is a good way to develop and improve your credit.
• Avoid changing jobs and houses frequently because it is viewed as instability and lack of staying power.

Check out our article on how you can improve your credit score.

Verdict

The Qantas American Express Ultimate Card offers a variety of ways to earn Qantas points and travel benefits. The high annual fee is compensated by travel credits and many rewards points and benefits.

Those looking for a balance transfer credit card to buy time to pay off previous credit will find the balance transfer terms — of 0%pa for 18 months with just a 1% balance transfer fee — a reprieve from their debt burden. However, it must be noted that there will be no credit-free days on purchases until you have paid off your balance transfer.

Whichever credit card you choose, remember that they all have their pros and cons. You need to conduct your own research and compare the pros and cons of a number of cards and how their features match your spending, available credit and lifestyle preferences.