Rewards Credit Cards
When it comes to rewards credit cards, one thing is for sure: consumers love them! There are many different types of rewards credit cards (car rental, hotel, petrol, retail rewards, travel insurance, and sign up bonus among others) and the banks use them as a way of attracting and retaining new customers. While these offers are becoming more and more common, you don’t want to get caught thinking that every card is the same. If you already know what you are looking for from a personal point of view, while also taking the time to compare the many rewards programs, choosing the right card is a simple task.
| credit card details | rewards program | reward points | purchase rate (p.a.) | annual fee | online application |
|---|
| credit card details | rewards program | reward points | purchase rate (p.a.) | annual fee | online application | |
|---|---|---|---|---|---|---|
|
Virgin Flyer Credit Card 4 Virgin Australia complimentary flights each year. Pay low interest on bal transfers for 9 months. |
Velocity Frequent Flyer | $1 = 1 Velocity Frequent Flyer point | 20.99% | $99 | editor's choiceApplication |
|
American Express Qantas Ultimate Credit Card 30,000 QFF points signup bonus. Free annual domestic return economy flight plus travel insurance. |
Qantas Frequent Flyer | $1 = 1.5 QFF points | 20.74% | $250 | |
|
ANZ Frequent Flyer Credit Card Earn uncapped Qantas Frequent Flyer points. $1 = 1 QFF point earn rate. Low annual fee. |
Qantas Frequent Flyer | $1 = 1 QFF point | 19.74% | $95 | |
|
ANZ Platinum Frequent Flyer Credit Card Earn uncapped QFF points at the higher earn rate of 1.5 QFF points per $1 spent. |
Qantas Frequent Flyer | $1.5 = 1 QFF point (Amex) | 19.74% | $295 | |
|
ANZ Rewards Credit Card 5 star Canstar Cannex winner. Uncapped points earning. Get 2 ANZ Rewards points per $1. |
ANZ Rewards | $1 = 2 ANZ Rewards points | 19.74% | $89 | |
|
BP-Citibank Credit Card Low 0% balance rates for 6 months! And 10% cash back on petrol at BP. |
- | - | 20.89% | $89 | |
|
Citibank Rewards Credit Card – Classic Top rewards. Earn 15,000 bonus reward points when you first spend. Low balance transfer rate. |
Citibank Rewards | $1 = 1 Citibank Rewards point | 20.99% | $89 | |
|
Qantas American Express Discovery Credit Card No annual fee. Earn 1 point per dollar. Get up to 10,000 QFF points if you apply before 31-Mar-12. |
Qantas Frequent Flyer | - | 20.74% | $0 | |
|
Westpac Altitude Credit Card Receive 5,000 bonus Altitude points. No points capping or expiry. |
Altitude Rewards | $1 = 2 Altitude points (Amex) | 19.99% | $100 | |
|
Westpac Earth Credit Card Cheap balance transfer and Qantas rewards. Fast 60 second approval. |
Qantas Frequent Flyer | $1 = 1 QFF point (Amex) | 19.99% | $75 | |
|
Westpac Earth Gold Credit Card No Qantas points capping. PayPass and overseas travel insurance. |
Qantas Frequent Flyer | - | 19.99% | $125 | |
|
American Express Business Accelerator Credit Card Earn 2 Membership Rewards points per dollar spent. |
Membership Rewards | $1 = 2 Membership Rewards points | 20.74% | $160 | |
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American Express Gold Ascent Credit Card Earn 1 Membership Rewards point per $1. Redeem on 7 airline rewards partner programs. |
Membership Rewards Ascent | $2 = 1 Membership Rewards point |
0% for 6 months (reverts to 20.74%) |
$0 | |
|
American Express Gold Business Credit Card Get 1 Membership Rewards point per dollar spent. Export GST reports. Complimentary travel insurance. |
Membership Rewards | $1 = 1 Membership Rewards point | - | $0 | |
|
American Express Platinum Edge Credit Card Receive 25,000 Membership Rewards points when you receive your credit card. |
Membership Rewards | $1 = 3 Membership Rewards points (Up to) |
0% for 6 months (reverts to 20.74%) |
$149 | |
How to Choose a Rewards Credit Card
With so many rewards credit cards to choose from, the comparison process can be time consuming. Of course, every bit of knowledge will help you make a decision.
It is simple to get caught up in the finer details of the rewards program. From earning points to cashing them in for luxurious trips, you are sure to have visions of greatness in your head. But remember, this is just one small part of the credit card. You must also factor in the interest rate, annual fee, customer service, and other similar details. Here are three tips for choosing a rewards credit card.
- Know how many points you can earn – Simply put, every card is different. Some will pay one point for every dollar spent; some will offer multiple points on particular types of purchases. It is important to know how and when you will accumulate points.
- What can you get for your points? – There is nothing better than having thousands upon thousands of credit card reward points at your disposal. However, these do not do you any good if you don’t fully understand the rewards program. Can you cash in your points for travel perks? Can you use them for merchandise? These are the sort of basic questions you need clear answers for before making a final decision.
- Is there a cap on the number of points you can accumulate? – Along with answering this question, find out if there is an expiration date. There is nothing worse than having points expire before you can use them.
Pros
- For every dollar you spend you will earn at least one point – Over time, these points can quickly add up and be redeemed for everything from cash back to flights and hotels and much more.
- Concierge service – The best rewards credit cards have great customer service, including a concierge service. With this, you have somebody who can help you redeem points, make reservations at your favourite hotel or restaurant, or simply answer your questions. Think of this as your own personal assistant.
- Bonus points – Many credit cards offer the opportunity to earn bonus points as an introductory offer. This gets you off to a good start while showing you just how much power your points can have.
Cons
- May get “tricked” into using your credit card more than you would like – With a rewards credit card you will always be looking for ways to earn points. In turn, you may use your card more than you would like. In the end, you could owe interest that more or less negates any benefit of earning points in the first place.
- Higher interest rate – Some reward credit cards have a higher than average interest rate. If you are not the type to pay off your balance when it comes due, this could lead to high interest charges month after month.