When you first picked yourself up a rewards credit card, you probably did so with visions of a free flight to Hawaii, a new set of luggage and a swanky hotel room, all compliments of your flashy new piece of plastic.
If you’re anything like the Aussies we surveyed recently, what you got instead, was a free set of luggage tags and a whopping credit card bill.
Yes, Mozo recently found that a lot of people aren’t exactly happy with their rewards credit card – and while it’s true they’re not for everyone, there are some great rewards cards offers out there for spenders who know how to flash their plastic the right way.
So here’s how to know if a rewards card is the right fit for you:
You pay your credit card bills in full and on time
This is a good habit to get into no matter what credit card you use, but being the kind of person who faithfully pays off their bill before the due date each month is doubly important if you’re using a rewards credit card. It means that not only will you not have to worry about paying late fees, but you’ll also be able to use your credit card without the bite of interest. And with some rewards cards packing interest rates as high as 20.99%, avoiding interest is key to getting good value for your spending.
You spend big
One of the main gripes Aussies had about their rewards card was that the annual fee was just way too high compared to the value they were getting from the card. If you’re not a big spender, a hefty annual fee can quickly outweigh the value of any rewards points – so if you’re going to invest in a rewards credit card, make sure you’ll be spending enough to justify the fee.
You use your credit card for everything
What’s a good way to make sure you spend big on your credit card? Use it for everything! This is also important for cards with an expiry date on points – on some cards, your hard earned rewards points might only last a matter of months. A rewards card might be for you if you use your card often enough that you’ll earn enough points to nab a really cool freebie before they expire.
On the other hand, some cards cap the amount of points you can earn per month or year – so it’s a good idea to keep this number in mind, so that you aren’t spending when you can’t earn any points.
You’re savvy about shopping in partner stores
A great way to boost your rewards points stash is by shopping in your provider’s partner stores, where you may be able to earn bonus points on your spend. So if you’re someone who knows your rewards program back-to-front and can maximise points by shopping smart, a rewards credit card could be a worthy addition to your wallet. For other tips on snagging bonus rewards points and maximising your earning potential, check out this blog.
You’re a frequent flyer
One of the most effective ways to cash in your rewards points is to use them on travel – things like flights or flight upgrades. So if you travel frequently, you’ll find it much easier to get the most bang for your rewards card buck. Other options like shopping rewards or retail gift cards aren’t quite as good value – but if that’s what you’re after, there are some great deals out there for them too. Check out our Rewards Revealer for an easy way to compare rewards credit cards and find the one that will get you the freebies you want.
If you fit the bill for a perfect rewards card user, then check out these great offers, all with low annual fees and some great bonus point offers to boost your rewards power:
|Rewards card||Bonus points offer||Annual fee|
|ANZ Rewards||25,000 Rewards Points when you spend $2,500 on purchases within the first 3 months.||$80 ($0 first year)|
|ANZ Frequent Flyer||25,000 Qantas Points when you spend $2,500 on purchases within the first 3 months.||$95 ($0 first year)|
|ANZ Rewards Platinum||50,000 Rewards Points when you spend $2,500 on purchases within the first 3 months.||$95 ($0 first year)|
|NAB Velocity Rewards Premium Card||20,000 bonus Velocity Points when you make an everyday purchase in the first 90 days.||$150|
|Bankwest More Platinum MasterCard||28,000 bonus rewards points once you spend at least $1,500 on eligible purchases within 2 months from account opening.||$130|
|Westpac Altitude Platinum||Apply by 6 July 2016 and receive 40,000 bonus points when you spend $1,000 on eligible purchases within 90 days from card approval.||$150 ($0 in the first year for existing Westpac customers)|
You can head over to our rewards card section to compare other offers on the market. Or, if you’re having second thoughts about a rewards card being the right fit for your wallet, you might be more suited to a great value, low rate credit card, which you can find here.