Best Rewards Credit Cards

Getting rewarded for spending money sounds like an ideal scenario. But will a rewards card really give you bang for your buck? We'll take you through the things you need to think about before signing up for a new rewards credit card. Continue Reading...

67 listings

Best Rewards Credit Card

Qantas American Express Discovery
Purchase Rate20.74% p.a.
Annual Fee$0.00 p.a.
Interest Free Period 44 days
No Annual Fee
No Points Earn Cap
0.75 point-per-dollar rate is reasonable for a $0-annual fee card
  • Transparency
    4.3 (40)
  • Customer Service
    4.5 (38)
  • Rates and Fees
    4.3 (36)
  • Rewards
    4.1 (35)
  • Online Experience
    4.3 (36)
  • Application Process
    4.5 (37)
  • BenefitsTravel Credit
  • Minimum Credit Limit $2,000.00
  • Maximum Credit Limit $100,000.00
  • Minimum Income $35,000.00
  • Rewards ProgramQantas Frequent Flyer
  • Points Earn Rate 0.75 points per $1
  • Contactless PaymentsApple Pay, Fitbit Pay, Google Pay and Samsung Pay
Qantas American Express Ultimate
Purchase Rate20.74% p.a.
Annual Fee$450.00 p.a.
Interest Free Period 44 days

Sign-Up Bonus Points100,000

Regular Bonus Point Offers
High Points Earn Rate
Uncapped Annual Points Accrual
$450 annual Qantas Travel Credit
Two complimentary Qantas Lounge invitations
High Annual Fee ($450)
1% Balance Transfer Establishment Fee
$65,000 minimum income requirement
Reviewers commonly complain that AmEx is not accepted everywhere
  • Transparency
    4.0 (41)
  • Customer Service
    4.3 (43)
  • Rates and Fees
    3.3 (43)
  • Rewards
    4.3 (42)
  • Online Experience
    4.0 (41)
  • Application Process
    4.2 (44)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance, Sign-Up Bonus Points Offer and Travel Credit
  • Minimum Credit Limit $3,000.00
  • Minimum Income $65,000.00
  • Rewards ProgramQantas Frequent Flyer
  • Points Earn Rate 1.25 points per $1
  • Contactless PaymentsApple Pay, Google Pay and Samsung Pay
Commonwealth Bank Awards
3.5 from 86 reviews
Purchase Rate20.24% p.a.
Annual Fee$59.00 p.a.
Interest Free Period 55 days
Entry-level credit limit of $500 minimum
Low $59 Annual Fee
High Balance Transfer Rate (5.99%)
Awards points earn rate capped at 50,000 per annum
  • Transparency
    4.0 (51)
  • Customer Service
    4.2 (50)
  • Rates and Fees
    3.6 (50)
  • Rewards
    3.9 (39)
  • Online Experience
    4.4 (48)
  • Application Process
    4.2 (39)
  • Foreign Transaction Fee 3%
  • Minimum Credit Limit $500.00
  • Rewards ProgramCommBank Awards
  • Points Earn Rate 1 points per $1
  • Contactless PaymentsApple Pay, Fitbit Pay, Garmin Pay, Google Pay and Samsung Pay
Coles No Annual Fee MasterCard
3.1 from 175 reviews
Purchase Rate19.99% p.a.
Annual Fee$0.00 p.a.
Interest Free Period 55 days

The Coles No Annual Fee Mastercard lets you collect Flybuys points when you make eligible purchases, and has up to 55 interest-free days and 0% p.a. on balance transfers for 12 months.

No annual fee
$10 off Coles supermarket shop at the checkout each time you redeem 2,000 flybuys points
Low flybuys points earn rate of 1 Flybuy Point per $2
Relatively high 19.99% interest rate
Reviewers mention poor customer service should an issue arise
  • Transparency
    3.6 (109)
  • Customer Service
    3.5 (112)
  • Rates and Fees
    4.1 (108)
  • Rewards
    3.8 (93)
  • Online Experience
    3.5 (107)
  • Application Process
    4.1 (94)
  • Foreign Transaction Fee 2.5%
  • Minimum Credit Limit $2,000.00
  • Maximum Credit Limit $60,000.00
  • Minimum Income $25,000.00
  • Rewards Programflybuys
  • Points Earn Rate 0.5 points per $1
  • Contactless PaymentsApple Pay and Samsung Pay
Commonwealth Bank Diamond Awards
Purchase Rate20.24% p.a.
Annual Fee$349.00 p.a.
Interest Free Period 55 days

Sign-Up Bonus Points100,000

100,000 Bonus Points on offer
Earn 1.25 Awards Points per $1
International Travel Insurance included
Cashback offers with Mastercard Travelers Rewards
$349 Annual Fee
3% International Transaction Fee
Minimum Credit Limit of $15,000
  • Transparency
    3.9 (29)
  • Customer Service
    4.2 (31)
  • Rates and Fees
    3.2 (32)
  • Rewards
    3.3 (29)
  • Online Experience
    4.2 (30)
  • Application Process
    4.1 (24)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance and Sign-Up Bonus Points Offer
  • Minimum Credit Limit $15,000.00
  • Maximum Credit Limit $50,000.00
  • Rewards ProgramCommBank Awards
  • Points Earn Rate 1.25 points per $1
  • Contactless PaymentsApple Pay, Fitbit Pay, Garmin Pay, Google Pay and Samsung Pay

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Super Funds Awards 2022!

A good super fund can make a substantial difference to the amount you retire with. From retail super funds to self managed super funds, view reviewer ratings for the top-rated super funds of 2022.

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What you need to know about store finance credit cards

A store credit card can help if you need to make an emergency purchase but you don’t have the money. Read on to learn how store credit cards work and discover what to watch out for.

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Credit Card Awards 2020

Whether it's the sign up bonus, rates and fees, or reliable customer service that you look for in a credit card, a credit card is often used everyday, so it's important you choose one that meets your needs and that you're happy with. These are the top-rated credit cards this year, as decided by ProductReview.com.au reviewers.

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Westpac Altitude Platinum

Westpac Altitude Platinum

 · includes 8 listings
3.3 from 41 reviews
Purchase Rate20.24 to 20.49% p.a.
Annual Fee$49.00 p.a., $150.00 p.a. and $200.00 p.a.

Sign-Up Bonus Points15,000 to 80,000

Uncapped points earn rate
Complimentary Insurance covers, including Overseas Travel, Purchase Security and Transit Accident Insurance
$150 Annual Fee (additional $50 if you choose Velocity or Qantas)
3% Foreign Transaction Fee
  • Transparency
    3.9 (19)
  • Customer Service
    3.9 (18)
  • Rates and Fees
    3.2 (20)
  • Rewards
    3.8 (16)
  • Online Experience
    3.6 (19)
  • Application Process
    4.1 (18)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance, Sign-Up Bonus Points Offer and Reduced First Year Annual Fee
  • Minimum Credit Limit $3,000.00 to $6,000.00
  • Minimum Income $30,000.00
  • Rewards ProgramQantas Frequent Flyer, Velocity Frequent Flyer and Westpac Altitude Rewards
  • Points Earn Rate 0.5 to 2 points per $1
  • Reduced First Year Annual Fee $99.00 and $149.00
  • Contactless PaymentsGoogle Pay, Samsung Pay, Fitbit Pay and Garmin Pay
Westpac Altitude Black

Westpac Altitude Black

 · includes 6 listings
2.8 from 87 reviews
Purchase Rate20.24 to 20.49% p.a.
Annual Fee$199.00 p.a. and $250.00 p.a.

Sign-Up Bonus Points90,000 to 150,000

Uncapped points earning
Lounge passes and travel insurance included
Annual fee is not inclusive of Velocity or QFF membership fee
$75,000 minimum income required
  • Transparency
    3.2 (54)
  • Customer Service
    3.2 (57)
  • Rates and Fees
    2.8 (52)
  • Rewards
    3.6 (53)
  • Online Experience
    3.3 (54)
  • Application Process
    3.4 (46)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance and Sign-Up Bonus Points Offer
  • Minimum Credit Limit $3,000.00 to $15,000.00
  • Maximum Credit Limit $75,000.00
  • Minimum Income $75,000.00 to $750,000.00
  • Rewards ProgramQantas Frequent Flyer, Velocity Frequent Flyer and Westpac Altitude Rewards
  • Points Earn Rate 0.75 to 3 points per $1
  • Contactless PaymentsApple Pay, Google Pay, Samsung Pay, Fitbit Pay and Garmin Pay
Coles Rewards Mastercard
2.7 from 158 reviews
Purchase Rate19.99% p.a.
Annual Fee$99.00 p.a.
Interest Free Period 55 days
20,000 bonus flybuy points on offer
$0 Annual Fee in your first year
$10 off Coles supermarket shop at the checkout each time you redeem 2,000 flybuys points
Earn 2 flybuys Points per $1 on eligible spend
0% p.a. on balance transfers for 18 months
Relatively high $99 Annual Fee
$30 Late Payment Fee
1.5% Balance Transfer Fee
  • Transparency
    3.0 (130)
  • Customer Service
    2.7 (137)
  • Rates and Fees
    3.2 (115)
  • Rewards
    3.7 (101)
  • Online Experience
    2.9 (123)
  • Application Process
    3.2 (110)
  • Foreign Transaction Fee 2.5%
  • BenefitsReduced First Year Annual Fee and Sign-Up Bonus Points Offer
  • Minimum Credit Limit $2,000.00
  • Rewards Programflybuys
  • Points Earn Rate 2 points per $1
  • Reduced First Year Annual Fee $0.00
  • Contactless PaymentsApple Pay and Samsung Pay
Woolworths Everyday Platinum
2.6 from 381 reviews
Purchase Rate19.99% p.a.
Annual Fee$49.00 p.a.
Interest Free Period 55 days
$10 off at Woolworths for 2,000 points (min. $667 spend)
10% off one shop at Woolworths each month
Regular promotions to waive the annual fee for the first year
Points earned are not the same as regular Woolworths Rewards points
Points cannot be converted to Qantas Frequent Flyer points
  • Transparency
    3.6 (70)
  • Customer Service
    3.5 (73)
  • Rates and Fees
    3.5 (72)
  • Rewards
    3.9 (58)
  • Online Experience
    3.6 (65)
  • Application Process
    3.7 (63)
  • Foreign Transaction Fee 3%
  • BenefitsReduced First Year Annual Fee
  • Minimum Credit Limit $6,000.00
  • Minimum Income $30,000.00
  • Points Earn Rate 3 points per $1
  • Reduced First Year Annual Fee $0.00
  • Contactless PaymentsApple Pay
American Express Explorer
3.6 from 19 reviews
Purchase Rate20.74% p.a.
Annual Fee$395.00 p.a.
Interest Free Period 55 days

Sign-Up Bonus Points50,000

Up to 50,000 bonus Membership Rewards points on offer
$400 Travel Credit each year
Two complimentary entries per year to the American Express Lounge at Sydney or Melbourne International Airports
Earn up to 2 Membership Rewards points per $1
Complimentary Travel Insurance
$395 Annual Fee
1% Balance Transfer Fee
  • Transparency
    4.1 (16)
  • Customer Service
    4.4 (15)
  • Rates and Fees
    3.1 (18)
  • Rewards
    3.9 (16)
  • Online Experience
    3.9 (18)
  • Application Process
    4.6 (14)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance, Sign-Up Bonus Points Offer and Travel Credit
  • Minimum Credit Limit $3,000.00
  • Minimum Income $65,000.00
  • Rewards ProgramAmerican Express Membership Rewards
  • Points Earn Rate 2 points per $1
  • Contactless PaymentsApple Pay, Fitbit Pay, Google Pay and Samsung Pay
St. George Amplify Signature

St. George Amplify Signature

 · includes 2 listings
3.6 from 20 reviews
Purchase Rate19.49% p.a.
Annual Fee$279.00 p.a.

Sign-Up Bonus Points90,000 to 200,000

200,000 Bonus Amplify Points or 90,000 Bonus Qantas Points on offer
Earn 1.5 Amplify Points or 0.75 Qantas Points for each dollar spent on eligible purchases, uncapped. Plus, receive Birthday Bonus Points
0% pa. on Balance Transfers for 6 months
Complimentary Insurance Covers and 2 Lounge Passes each year
$379 Annual Fee
3% Overseas Transaction Fee
Balance Transfer Rate reverts to high Cash Advance Rate of 19.74% after the first 6 months
  • Transparency
    4.1 (17)
  • Customer Service
    4.1 (17)
  • Rates and Fees
    3.8 (16)
  • Rewards
    4.5 (13)
  • Online Experience
    4.0 (17)
  • Application Process
    4.1 (18)
  • Foreign Transaction Fee 3%
  • BenefitsSign-Up Bonus Points Offer
  • Minimum Credit Limit $15,000.00
  • Rewards ProgramQantas Frequent Flyer and Amplify Rewards
  • Points Earn Rate 0.75 to 1.5 points per $1
  • Contactless PaymentsApple Pay, Google Pay and Samsung Pay
ANZ Rewards
2.7 from 58 reviews
Purchase Rate20.24% p.a.
Annual Fee$80.00 p.a.
Interest Free Period 44 days

Sign-Up Bonus Points50,000

1 Reward Point per $1 spent on eligible purchases up to $1,000 per statement period
Up to 55 interest free days on purchases
3% Overseas Transaction Fee
Lower earn rate of 0.5 Reward Points per $1 after the first $1,000 per statement period
  • Transparency
    3.6 (24)
  • Customer Service
    3.5 (23)
  • Rates and Fees
    3.1 (22)
  • Rewards
    3.8 (21)
  • Online Experience
    3.6 (22)
  • Application Process
    3.9 (17)
  • Foreign Transaction Fee 3%
  • Minimum Credit Limit $1,000.00
  • Minimum Income $15,000.00
  • Rewards ProgramANZ Rewards
  • Points Earn Rate 1 points per $1
  • Contactless PaymentsApple Pay, Garmin Pay, Google Pay and Samsung Pay
David Jones American Express
2.5 from 76 reviews
Purchase Rate20.74% p.a.
Annual Fee$99.00 p.a.
Interest Free Period 44 days

Sign-Up Bonus Points15,000

$200 Cashback on offer
Earn up to 3 Reward Points or 1.5 Qantas Points per dollar (1 Reward Point = 0.5 Qantas Points)
3% Currency Conversion Fee
$99 Annual Fee
  • Transparency
    2.8 (27)
  • Customer Service
    2.9 (30)
  • Rates and Fees
    2.5 (30)
  • Rewards
    2.8 (30)
  • Online Experience
    2.9 (29)
  • Application Process
    3.4 (29)
  • Foreign Transaction Fee 3%
  • BenefitsCashback Offer
  • Minimum Credit Limit $2,000.00
  • Minimum Income $40,000.00
  • Rewards ProgramAmerican Express Membership Rewards and Qantas Frequent Flyer
  • Points Earn Rate 3 points per $1
  • Contactless PaymentsApple Pay, Google Pay and Samsung Pay
American Express Platinum
2.7 from 57 reviews
Annual Fee$1,450.00 p.a.
Interest Free Period 44 days

Sign-Up Bonus Points200,000

Up to 200,000 bonus Membership Points on offer (see Details)
No pre-set spending limit
Card is made of metal
2.25 Membership Rewards points per $1 spent
$450 travel credit each year
$1,450 Annual Fee
Minimum required income of $100,000
  • Transparency
    2.9 (38)
  • Customer Service
    3.2 (40)
  • Rates and Fees
    2.3 (39)
  • Rewards
    2.9 (35)
  • Online Experience
    3.1 (38)
  • Application Process
    3.6 (30)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance, Sign-Up Bonus Points Offer and Travel Credit
  • Minimum Income $100,000.00
  • Rewards ProgramAmerican Express Membership Rewards
  • Points Earn Rate 2.25 points per $1
  • Contactless PaymentsApple Pay, Fitbit Pay, Google Pay and Samsung Pay
Commonwealth Bank Platinum Awards
Purchase Rate20.24% p.a.
Annual Fee$249.00 p.a.
Interest Free Period 55 days

Sign-Up Bonus Points80,000

Up to 80,000 Bonus Awards Points on offer
Earn 1 Awards point for every $1 spent
International Travel Insurance included
$249 Annual Fee
3% International Transaction Fee
Points are capped at 150,000 points per year
  • Transparency
    3.5 (22)
  • Customer Service
    3.9 (22)
  • Rates and Fees
    2.7 (22)
  • Rewards
    2.9 (18)
  • Online Experience
    4.0 (22)
  • Application Process
    4.0 (16)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance and Sign-Up Bonus Points Offer
  • Minimum Credit Limit $6,000.00
  • Maximum Credit Limit $50,000.00
  • Minimum Income $50,000.00
  • Rewards ProgramCommBank Awards
  • Points Earn Rate 1 points per $1
  • Contactless PaymentsApple Pay, Fitbit Pay, Garmin Pay, Google Pay and Samsung Pay

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How to get in front of credit card debt with a credit card balance transfer.

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American Express Platinum Edge
Purchase Rate20.74% p.a.
Annual Fee$195.00 p.a.
Interest Free Period 55 days
$200 Travel Credit each year
$0 Annual Card Fee in the first year
Earn up to 3 Membership Rewards Points per $1
0% p.a. on Balance Transfers for the first 12 months
Complimentary Travel Insurance
$195 Annual Fee
1% Balance Transfer Fee
  • Transparency
    3.3 (11)
  • Customer Service
    3.3 (12)
  • Rates and Fees
    2.8 (12)
  • Rewards
    2.9 (10)
  • Online Experience
    3.5 (12)
  • Application Process
    3.7 (11)
  • BenefitsComplimentary Travel Insurance, Reduced First Year Annual Fee and Travel Credit
  • Minimum Credit Limit $3,000.00
  • Minimum Income $50,000.00
  • Rewards ProgramAmerican Express Membership Rewards
  • Points Earn Rate 3 points per $1
  • Reduced First Year Annual Fee $0.00
  • Contactless PaymentsApple Pay, Fitbit Pay, Google Pay and Samsung Pay
American Express Essential
2.3 from 139 reviews
Purchase Rate14.99% p.a.
Annual Fee$0.00 p.a.
Interest Free Period 55 days
$0 Annual Fee & Low Interest Rate of 14.99% p.a. on purchases
Earn up to 1.25 Membership Rewards Points per $1
Smartphone Screen Insurance of up to $500 each year
Add up to 4 Additional Cards at no extra cost
3% Balance Transfer Fee
3% Currency Conversion Fee
  • Transparency
    3.0 (69)
  • Customer Service
    3.0 (70)
  • Rates and Fees
    3.0 (64)
  • Rewards
    3.1 (59)
  • Online Experience
    3.0 (61)
  • Application Process
    3.5 (54)
  • Foreign Transaction Fee 3%
  • Minimum Credit Limit $2,000.00
  • Maximum Credit Limit $25,000.00
  • Minimum Income $40,000.00
  • Rewards ProgramAmerican Express Membership Rewards
  • Points Earn Rate 1.25 points per $1
  • Contactless PaymentsApple Pay, Fitbit Pay, Google Pay and Samsung Pay
HSBC Platinum
2.5 from 40 reviews
Purchase Rate19.99% p.a.
Annual Fee$129.00 p.a.
Interest Free Period 55 days
0% p.a. on Balance Transfers for 26 months and no annual fee in first year or 84,000 bonus Reward points on offer
Refunded $129 Annual Fee if you spend $6,000 or more on purchases each year
Earn up to 2 Rewards Plus Points per dollar
Complimentary Insurances, including Domestic and International Travel Insurance
3% Overseas Exchange Fees
Earning Points capped at 10,000 per statement period
Balance Transfers revert to the high Cash Advance Rate of 21.99% p.a.
  • Transparency
    3.1 (26)
  • Customer Service
    3.0 (26)
  • Rates and Fees
    3.7 (24)
  • Rewards
    3.2 (19)
  • Online Experience
    2.8 (26)
  • Application Process
    3.0 (25)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance and Reduced First Year Annual Fee
  • Minimum Credit Limit $6,000.00
  • Minimum Income $40,000.00
  • Rewards ProgramHSBC Rewards Plus
  • Points Earn Rate 2 points per $1
  • Reduced First Year Annual Fee $29.00
  • Contactless PaymentsApple Pay and Google Pay
BankWest More Platinum MasterCard
Purchase Rate19.99% p.a.
Annual Fee$160.00 p.a.
Interest Free Period 44 days
Earn 75,000 Annual Bonus Points every year
Earn 2 points per $1 spent on eligible purchases
No Foreign Transaction Fees
Complimentary Travel and Shopping Insurances
0% p.a. on Balance Transfers for the first 6 months
$160 Annual Fee
Minimum $48,000 spend required each anniversary year to receive Bonus Points
1% Balance Transfer Fee
  • Transparency
    3.1 (7)
  • Customer Service
    3.6 (8)
  • Rates and Fees
    3.5 (8)
  • Rewards
    3.5 (6)
  • Online Experience
    4.0 (7)
  • Application Process
    4.3 (7)
  • Foreign Transaction Fee 0%
  • BenefitsComplimentary Travel Insurance and No Foreign Transaction Fee
  • Minimum Credit Limit $6,000.00
  • Maximum Credit Limit $50,000.00
  • Minimum Income $65,000.00
  • Rewards ProgramBankWest More Rewards
  • Points Earn Rate 2 points per $1
  • Contactless PaymentsApple Pay
Qantas Premier Everyday
2.6 from 19 reviews
Purchase Rate19.99% p.a.
Annual Fee$49.00 p.a.
Interest Free Period 55 days

Sign-Up Bonus Points8,000

Up to 27,000 bonus Qantas Points on offer
Earn up to 1 Qantas Point per $1 spent
0% p.a. on Balance Transfers for 12 months
Complimentary Travel Insurance
3% Foreign Transaction Fee
  • Transparency
    3.3 (14)
  • Customer Service
    3.1 (13)
  • Rates and Fees
    2.9 (13)
  • Rewards
    3.4 (10)
  • Online Experience
    2.8 (14)
  • Application Process
    3.6 (13)
  • Foreign Transaction Fee 3%
  • BenefitsComplimentary Travel Insurance and Sign-Up Bonus Points Offer
  • Minimum Credit Limit $4,000.00
  • Maximum Credit Limit $30,000.00
  • Minimum Income $35,000.00
  • Rewards ProgramQantas Frequent Flyer
  • Points Earn Rate 1 points per $1
  • Contactless PaymentsApple Pay, Fitbit Pay and Samsung Pay
Page 1 of 3

Woman shopping using a rewards card

What is a rewards credit card?

Rewards credit cards are like loyalty programs attached to credit card. When you use your credit card, you’re rewarded with a certain point value per dollar spent, for example, you can earn 1 point per dollar. You then redeem points for rewards, which can span everything from travel rewards, supermarket rewards, cash rewards, store rewards and gift cards.

Should I get a rewards card?

If you're unsure of whether you should sign up for a rewards card, consider the following questions.

Can you pay off your monthly balance on time?

Paying off credit card

This is the most important question of all. Rewards credit cards will only be worth it if you are disciplined, and religiously pay off your balance by the due date every month.

If not, you’ll be charged high interest in the form of your credit card's purchase rate. Since this purchase rate is typically higher for a rewards card than any other card type - around 20% or more - this could have you paying through the nose.

Along with annual fees and late fees, paying interest will make your rewards card more expensive than it's worth. What’s more, if you don’t pay off your balance on time, the bank will probably block you from earning points as a penalty, making this type of card, well… pointless.

An example of what happens when you don't pay your balance on time

Using the moneysmart.gov.au credit card calculator, here is how much you’d end up paying with an outstanding $2000 balance at a 20% interest rate.

If making the minimum repayments (starting at $41 for the first month then decreasing as you slowly pay the debt off), you’d pay $7, 709 over 24 years and 9 months.

If you opted for higher repayments and paid $100 a month, you’d pay $2403 in total over 2 years.

While this is considerably less than the previous figure, you’re still paying $403 for no reason, whereas if you pay on time, the amount you pay will only be $2000, plus any fees.

Does the type of reward offered match your interests?

Make sure to check out what kind of rewards are on offer to get the best rewards credit card for you. Opt for rewards you would normally use in everyday life, so you can enjoy perks that are practical. Here are common types of rewards offered:

  • Travel rewards could come in handy if you jet set a lot. You can use points to purchase flights, upgrades (for example upgrading premium economy to business class), accommodation, complimentary travel insurance and concierge services.* Check out a frequent flyer credit card like the top-rated Qantas American Express Discovery card, or one linked to the popular Velocity frequent flyer program with Virgin Australia.
  • Supermarket rewards offer you a discount on your grocery bill when you spend enough, such as the $10 discount you get per 2,000 flybuys points with the Coles Rewards Mastercard.
  • Cashback is an attractive option, as it supplies you with cash rewards once you’ve spent enough on your card.
  • Gift cards are available for redemption from selected retail partners.
  • Store rewards let you redeem a variety of items, from beauty products to personal electronics. Examples include the Qantas Store and GO Rewards online store.

*Using a frequent flyer card, you'll get the best value for your points by redeeming them for: upgrades starting from Premium Economy, followed by airfares. Store purchases offer the least value. As an example, the iPhone 11 Pro 64GB, which retails for $1749, will cost you 304,180 points in the Qantas store. Compare this to a one-way business class trip to LA, which can cost upwards of $3000, but only 108,400 frequent flyer points – offering much better value.

Are you going to spend enough to qualify for the rewards?

Credit card spending

Choose a credit card that matches your spending habits. Rewards cards usually have a higher credit limit than other types like low rate credit cards.

Credit card providers will market this as a way for you to maximise points, but be wary of overspending just to earn rewards. It won’t be financially viable, as you’ll end up spending more than you normally would, negating the value of any rewards.

Rewards cards will also have a minimum credit limit. This is the minimum amount you need to spend each month to qualify for the card. An entry-level credit limit is around $500, exemplified by the Commonwealth Bank Awards card. However minimum credit limits can be significantly higher, for example you need to spend at least $3000 a month on the Qantas American Express Ultimate Card or the American Express Explorer.

To make sure you can meet the minimum spend amont required from a prospective rewards card, draw up a budget of how much you already spend each month.

Consider everyday expenses like groceries, petrol and restaurant bills – these can be paid with your rewards card to bump up your points. If you pay rent, does your real estate agent allow you to pay with a credit card? Sometimes you can even pay mortgage repayments with a credit card, although these will likely incur a fee. You can also usually add additional cards and link them to the same rewards program, so multiple family members can contribute to the minimum spend amount with their regular spending.

However, keep in mind that not all purchases made with a rewards card will earn points. For example, water and electricity bills are usually exempt.

Do credit card fees and rates cost more than the rewards are worth?

While the idea of working towards a free flight or a fatter wallet by earning rewards is appealing, if you end up forking out more in credit card fees each year than the value of rewards you get back, you're probably better off without the card.

Here's a list of the main rates, fees and 'limited time' offers associated with a rewards card:

  • Interest-free period: If offered, this is short, usually 44 days or 55 days.
  • Introductory interest rate: A discounted purchase rate the bank offers for a limited period of time. Make sure to check the ongoing purchase rate for the interest charges you'll pay thereafter.
  • Purchase rate: The interest rate you’re charged if you have a balance owing at the end of the month. Look for a low ongoing rate that you can afford alongside the minimum repayment amount, if you do miss a payment.
  • Annual fee: Not all cards have this, and the fee will generally increase depending on: the minimum income requirement for the card, and the level of premium perks offered, like travel insurance. As an example, the ANZ Rewards credit card, requires you to earn $15,000 a year, and has a relatively low annual fee of $80. Other annual fees can range up to $700. Some cards also have a reduced annual fee for the first year.
  • Cash advance fees: These are charged if you transfer funds or withdraw money at an ATM or bank teller, and attract a cash advance interest rate.
  • Late payment fee: If you don’t pay your bill on time, this is charged along with the purchase rate.

Other fees include rewards program fees, international transaction fees, and penalty fees if you exceed your credit limit.

What are the points really worth?

  • Are there bonus points for signing up? This offers a nice little lump sum of points to get you started, but check the terms and conditions to make sure you don't need to spend an unreasonable amount on the card in a short period of time to qualify.
  • What’s the points currency? How many points do you get for every $1 that you spend? Some cards may have a lower point value, like 0.75 points per $1, but offset this in the form of lower, or zero, annual fees or other perks.
  • What is the points value? Do some research to find out. For example, if you’re interested in Qantas Frequent Flyer points, consult the Qantas Classic Flight Rewards Tables online to see how many points you need for your planned trip. You might find out it will take you years to save up the number of points you need, potentially leading to points fatigue. You can then make an informed decision to choose a card with a different reward.
  • Is there a points cap? This can stop you from earning any more points after you hit a certain limit (a ‘hard cap’). For example, points earned on the GO MasterCard are capped at 100, 000 a year. Sometimes points are ‘soft capped,’ meaning your points rate is reduced after you spend a certain amount.
  • Do points expire? If you’re saving up for a major points redemption like a flight, make sure to triple check the expiry date – it would be tear-worthy to have points expire before you’re all set to book.
  • How easy is it to redeem points? Make sure that your points balance is easily accessible for checking so you don’t stockpile points without realising. Check whether the redemption process happens online, over the phone, or automatically – for example, when you get offered a discount on your next grocery shop after spending a certain amount. You can also read reviews to find out firsthand how other credit card users found the redemption process.

As a catch-all, always remember to read the Product Disclosure Statement so you’re aware of any fine print that may preclude you from redeeming points.

The bottom line

Overall, if you're interested in getting a rewards card, you should be certain you can pay it off on time every month, to avoid getting hit with a high purchase rate. If you can do this, and you're not overspending in order to reach the minimum credit limit or to earn extra points, a rewards credit card might be something you want to put on the table.

Also make sure to pick a card type that offers the kind of rewards you want, so you can more easily book that trip or have that extra cash sitting flush in your pocket, just like you deserve.

Disclaimer: The information on this website is for general information only. It should not be taken as constituting professional advice from the website owner - ProductReview.com.au. ProductReview.com.au is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. ProductReview.com.au is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.