Macquarie Bank and Jetstar, the budget arm of Qantas Airlines, are teaming together to offer a low interest, low cost, airline rewards MasterCard or Platinum MasterCard in Jetstar’s first introduction to the credit card market.

The new Jetstar MasterCard will carry an interest rate of 10.99% p.a., with 0.0% for balance transfers during the first six months, a $49 annual fee, and up to 55 days interest free. Each dollar spent using the MasterCard will earn one cent of “Jetstar dollars,” which can be used to purchase travel vouchers good for any Jetstar flight to more than 50 destinations. The Platinum MasterCard earns two Jetstar pennies for each dollar spent.

Negotiations are underway to include Qantas flights within the Jetstar dollars rewards scheme.

Consumer ratings firm Canstar Cannex rated the Jetstar MasterCard the lowest interest rate card with a flight rewards program. Financial experts had recently forecast that new credit cards would enter the Australian market, increasing competition in the industry and giving account holders greater choice and lower costs.

Bruce Buchanan, CEO of Jetstar, said, “We aim to do for credit cards what Jetstar did for low fares airline travel in Australia when we launched back in 2004: to present consumers a choice with real benefits.”

Source: news.com.au