Rewards credit cards: Millennials shop around for a better program
It’s out with the old and in with the new for Aussie Millennial rewards credit card customers.
This is according to a recent study by data analytics and consumer intelligence company, J.D. Power.
In a new report, they found that 9% of Millennials have switched credit cards over the past year while 22% intend to ditch their current plastic for something fresher in the next 12 months. This is more than double that of older credit card customers (4% and 11%, respectively).
But why are Millennials looking for something new?
It’s all in the rewards.
Since the COVID-19 pandemic began, J.D. Power found that 48% of Millennials have been spending less on their credit card. While 18% claim the overall value of their card has decreased. In fact, recent Mozo data shows that not only Millennials but 66% of all Aussies say rewards cards are no longer worth it.
However, Millennials haven’t given up hope. 29% of young Aussies are on the hunt for a better rewards program and a further 29% are looking for more benefits.
“Millennials are savvy and are shopping around for a card that offers a better rewards program that suits their changed spending habits,” said Bronwyn Gill, head of banking and payments intelligence at J.D. Power Australia.
“Card issuers must offer reward programs that are relevant to Millennials, or risk losing longer-term relationships with this important age group.”
What type of rewards do millennials like?
According to the recent J.D. Power stats, the main reason Millennials opt for credit cards is out of convenience (56%). However, the second most common reason is to earn rewards (42%) and there are a few specific things that young customers are looking for.
Millennials value cashback, gift cards and vouchers, airline miles, airline tickets and fuel rebates the most when choosing a rewards credit card.

“Rewards programs are key for Millennials,” said Gill.
“After convenience, earning rewards is the second most important reason as to why Millennials use their credit card, however new spending habits are directly influencing the ability to accumulate and redeem rewards.”
Things to consider when switching credit cards
The truth is, changing credit cards isn’t as simple as finding a rewards program you like and then jumping ship. There are a few important things you need to consider.
Fees: Compare the fees between your current card and the new card. This includes the annual fee, cash advance fee, late payment fee and foreign exchange charge. While a rewards program may seem great, if the fees outweigh what’s on offer you could end up in a worse position than you are in now.
Interest rates: According to the Mozo database, credit card interest rates can range anywhere from a low 7.49% all the way up to 24.99%. And the reality is that a lot of rewards credit cards come with higher interest rates. So, if you are sacrificing a low interest rate for a better rewards program you must ensure you pay down your balance in full month to month (to avoid hefty interest repayments). However, if you tend to only pay the minimum repayment amount each month, opting for a rewards credit card with a high interest rate may end up costing you more over time.
Rewards and bonus points offers: It’s crucial to get all the information you need about a particular rewards program before signing up. Consider things like points earnings (how many points you receive for every dollar you spend), rewards program type, what you can spend your points on, extra perks etc. Also remember to check out what bonus points offers are around, as they can be a good way to rack up points early on. Just bear in mind, these offers generally come with spending requirements so only sign up if you intend or regularly spend the amount required (don’t force yourself to spend more just to gain bonus points).
Compare Rewards Credit Cards 2020 - last updated February 27, 2021
St.George Amplify Signature
Earn up to 200,000 Bonus Amplify Rewards Points over 2 years (130k yr 1, 70k yr 2) when you spend $12k on eligible purchases each year. $139 reduced first year annual card fee (normally $279). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
Rewards program
Annual fee
Bonus points
Earn rate per $1
Amplify Rewards$279 $139 in the first year200,0001.5 points uncappedCompareCompareAmplify Signature
Earn up to 200,000 Bonus Amplify Rewards Points over 2 years (130k yr 1, 70k yr 2) when you spend $12k on eligible purchases each year. $139 reduced first year annual card fee (normally $279). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
- Intro rate
- -
- Ongoing Purchase rate
- 19.74% p.a.
- Balance transfer rate
- 0% p.a. for 6 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Foreign exchange
- 3.00%
- Late payment
- $15.00
- Points earning
- 1.5 points per dollar on Visa, uncapped
- Reward point expiry
- Never
- Bonus points
- 200,000
- Rewards
- Points
- N/A
- 212,000 points
- 22,200 points
- Card Benefits
- Concierge,
Travel Insurance,
Extended Warranty,
Purchase Protection,
Guaranteed Pricing,
Rental Car Excess Cover
Read our Mozo Review to learn more about the Amplify Signature
American Express Qantas Ultimate Card
Receive 100,000 bonus Qantas Points when you apply online by 5 April 2021, are approved and spend $3,000 on your new Card within the first 3 months. T&Cs apply. New Card Members only. Mozo Experts Choice Qantas Frequent Flyer Premium Credit Card Winner 2020^. T&C’s apply
Rewards program
Annual fee
Bonus points
Earn rate per $1
Qantas Frequent Flyer$450100,0001.25 points uncappedCompareCompareQantas Ultimate Card
Receive 100,000 bonus Qantas Points when you apply online by 5 April 2021, are approved and spend $3,000 on your new Card within the first 3 months. T&Cs apply. New Card Members only. Mozo Experts Choice Qantas Frequent Flyer Premium Credit Card Winner 2020^. T&C’s apply
- Intro rate
- -
- Ongoing Purchase rate
- 20.74% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 1.25 points per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- 100,000
- Rewards
- Points
- 8,000 points
- 110,400 points
- 18,770 points
- Card Benefits
- Travel Insurance,
Purchase Protection,
Account alerts by SMS
Read our Mozo Review to learn more about the Qantas Ultimate Card
NAB Qantas Rewards Signature Card
NABs fastest way to earn Qantas Points. 130,000 bonus Qantas Points when you spend $3,000 on everyday purchases within 60 days of account opening and keep the card open for 12 months. 7 complimentary insurances when you meet eligibility criteria including Overseas Travel Insurance.
Rewards program
Annual fee
Bonus points
Earn rate per $1
Qantas Frequent Flyer$395 $295 in the first year130,0001 point up to $5,000/month, then
0.5 points up to $20,000/monthCompareCompareQantas Rewards Signature Card
NABs fastest way to earn Qantas Points. 130,000 bonus Qantas Points when you spend $3,000 on everyday purchases within 60 days of account opening and keep the card open for 12 months. 7 complimentary insurances when you meet eligibility criteria including Overseas Travel Insurance.
- Intro rate
- -
- Ongoing Purchase rate
- 19.99% p.a.
- Balance transfer rate
- 0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $15.00
- Points earning
- 1 point per dollar on Visa, up to $5,000 per month, then
0.5 points per dollar on Visa, up to $20,000 per month
- Reward point expiry
- Never
- Bonus points
- 130,000
- Rewards
- Points
- 8,000 points
- 110,400 points
- 18,770 points
- Card Benefits
- Concierge,
Travel Insurance,
Extended Warranty,
Purchase Protection,
Guaranteed Pricing,
Domestic Hotel Burglary Insurance
Read our Mozo Review to learn more about the Qantas Rewards Signature Card
BankSA Amplify Signature
Earn up to 200,000 Bonus Amplify Rewards Points over 2 years (130k yr 1, 70k yr 2) when you spend $12k on eligible purchases each year. $139 reduced first year annual card fee (normally $279). New cards only, Eligibility criteria and T&Cs apply. Offer ends 2nd March 2021.
Rewards program
Annual fee
Bonus points
Earn rate per $1
Amplify Rewards$279 $139 in the first year200,0001.5 points uncappedCompareCompareAmplify Signature
Earn up to 200,000 Bonus Amplify Rewards Points over 2 years (130k yr 1, 70k yr 2) when you spend $12k on eligible purchases each year. $139 reduced first year annual card fee (normally $279). New cards only, Eligibility criteria and T&Cs apply. Offer ends 2nd March 2021.
- Intro rate
- -
- Ongoing Purchase rate
- 19.74% p.a.
- Balance transfer rate
- 0% p.a. for 6 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Foreign exchange
- 3.00%
- Late payment
- $15.00
- Points earning
- 1.5 points per dollar on Visa, uncapped
- Reward point expiry
- Never
- Bonus points
- 200,000
- Rewards
- Points
- N/A
- 212,000 points
- 22,200 points
- Card Benefits
- Concierge,
Travel Insurance,
Extended Warranty,
Purchase Protection,
Guaranteed Pricing,
Rental Car Excess Cover
Read our Mozo Review to learn more about the Amplify Signature
American Express Qantas Discovery Card
Receive up to 1.75 Qantas Points for every $1 spent on Card purchases (T&Cs apply). No annual fee for the life of the card. T&C’s apply. Mozo Experts Choice Qantas Frequent Flyer Credit Card Winner 2020^.
Rewards program
Annual fee
Bonus points
Earn rate per $1
Qantas Frequent Flyer$0No current offer0.75 points uncappedCompareCompareQantas Discovery Card
Receive up to 1.75 Qantas Points for every $1 spent on Card purchases (T&Cs apply). No annual fee for the life of the card. T&C’s apply. Mozo Experts Choice Qantas Frequent Flyer Credit Card Winner 2020^.
- Intro rate
- -
- Ongoing Purchase rate
- 20.74% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 0.75 points per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- No current offer
- Rewards
- Points
- 8,000 points
- 110,400 points
- 18,770 points
- Card Benefits
- Purchase Protection,
Account alerts by SMS
Read our Mozo Review to learn more about the Qantas Discovery Card
NAB Qantas Rewards Premium Card
30,000 bonus Qantas Points when you spend $2,500 within 60 days (T&Cs apply).
Rewards program
Annual fee
Bonus points
Earn rate per $1
Qantas Frequent Flyer$25030,0000.66 points up to $3,000/month, then
0.33 points up to $6,000/monthCompareCompareQantas Rewards Premium Card
30,000 bonus Qantas Points when you spend $2,500 within 60 days (T&Cs apply).
- Intro rate
- -
- Ongoing Purchase rate
- 19.99% p.a.
- Balance transfer rate
- 0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $15.00
- Points earning
- 0.66 points per dollar on Visa, up to $3,000 per month, then
0.33 points per dollar on Visa, up to $6,000 per month
- Reward point expiry
- Never
- Bonus points
- 30,000
- Rewards
- Points
- 8,000 points
- 110,400 points
- 18,770 points
- Card Benefits
- Concierge,
Travel Insurance,
Extended Warranty,
Purchase Protection,
Guaranteed Pricing,
Domestic Hotel Burglary Insurance
Read our Mozo Review to learn more about the Qantas Rewards Premium Card
NOTE: It’s also important to keep in mind that when switching to a new credit card you are likely to face some new conditions, such as income requirements or credit history checks. This may affect your ability to apply for a particular rewards credit card or determine the credit limit you are able to have.
RELATED ARTICLE: Afterpay: Millennials tried credit cards, but Gen Z aren't even signing up
Want to start your search for your new rewards card? Take a look at the killer options below or jump over to our rewards credit cards comparison table.
^See information about the Mozo Experts Choice Rewards Credit Cards Awards
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