Is a rewards card really right for me?

You’re probably the kind of person who uses a credit card a lot and has managing your balance down to a fine art. The next question is, which rewards card will suit you best? To find a piece of plastic that matches up to your freebie dreams, head over to our rewards revealer tool.

You can still cash in on the convenience of plastic. But instead of a rewards option, you might be better off with a low rate, no annual fee or balance transfer card. You can use our handy infographic to work out which credit card is right for you.

Whether you have a rewards card in your wallet already or you’re thinking about adding a new piece of plastic to your spending arsenal, you may find yourself asking the question, “Is a rewards card really the right option for my spending needs?”

It’s not always an easy question to answer, since it depends how you use your card, what your budget looks like, and whether or not you’d get enough use out of the rewards program to justify the hefty costs. But answer “yes” or “no” to these few questions and we might be able to help you work it out.

Start looking through our top cards below. 

Rewards Credit Card Comparison Table - rates updated daily

Search promoted rewards credit cards below or do a full Mozo database search. Advertiser disclosure.
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    NAB Qantas Rewards Signature Card

    NABs fastest way to earn Qantas Points. 110,000 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. Access to 6 complimentary insurances when you make eligible purchases.

    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Estimated points earned
    Qantas Frequent Flyer
    $395 $295 in the first year
    110,000
    1 point up to $5,000/month, then
    0.5 points up to $20,000/month
    Go to site
    Details
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    American Express Velocity Platinum Card

    Receive 120,000 bonus Velocity Points and 120 Status Credits when you apply online by 13 December 2021, are approved and spend $4,500 on your new Card within the first 3 months. New Card Members Only. Enjoy a complimentary domestic return flight with Virgin Australia to selected cities, each year after your first card spend.

    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Estimated points earned
    Velocity Frequent Flyer
    $375
    120,000
    1.25 points uncapped
    Go to site
    Details
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    NAB Qantas Rewards Premium Card

    65,000 bonus Qantas Points when you spend $2,500 within 60 days (T&Cs apply).

    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Estimated points earned
    Qantas Frequent Flyer
    $250
    65,000
    0.66 points up to $3,000/month, then
    0.33 points up to $6,000/month
    Go to site
    Details
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    NAB Rewards Platinum Card

    Up to 60,000 bonus points (T&Cs apply). Also get 1 NAB reward point for every $1 spent on everyday purchases.

    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Estimated points earned
    NAB Rewards
    $195
    60,000
    1 point uncapped
    Go to site
    Details
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    David Jones American Express Card

    Earn 50,000 Membership Rewards Points or 25,000 Qantas Points when you apply online by 9 February 2022, are approved and spend $1,500 at locations excluding David Jones on your new Card within the first three months. Plus, enjoy 0% p.a. on purchases for 12 months. Available to new David Jones American Express Card Members only.

    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Estimated points earned
    Membership Rewards
    $99
    50,000
    1 point uncapped
    Go to site
    Details

Do you…

...love a freebie?

Who doesn’t love something for nothing? The whole point of a rewards card is that you get more bang for your buck, by earning points on every dollar you spend. Not only that, but you can also pick up other freebies and perks, like complimentary insurance cover, cashback and a concierge service.

The important thing with a rewards card is making sure you’ll get enough value from your rewards program to justify paying a hefty annual fee or interest rate. If you think you’ll forget or not bother to use your points, the price tag might not be worth it.

...pay your entire bill every month?

Rewards plastic generally comes with a pretty steep interest rate attached, often around the 20% mark. That means that if you’re going to keep your credit card use affordable, then you should only opt for a rewards card if you pay off your bill each month and avoid paying interest.

Remember that to avoid getting whacked by hefty interest, you need to clear your whole balance and not just pay the minimum amount shown on your statement. If you do find yourself just paying the minimum, you might be better off to try out a low interest card.

…always pay your bill on time?

By the same token, a rewards card is best suited to spenders who faithfully pay off their bill before the due date. Not only will this mean avoiding interest, but you’ll also avoid paying late fees.

If you sometimes forget to make payments but really want a rewards card (or any credit card, for that matter) one good idea is setting up automatic payments to cover either your whole bill, or at least the minimum amount.

…use your credit card all the time?

The easiest route to earning a stack of rewards is by spending a lot of money - but don’t go emptying your bank account just yet. Although spending up big does make you a prime candidate for a rewards card, a smarter strategy is to instead just make the most of what you already spend, by flashing your plastic every time you hit the check out.

So if you prefer plastic to cash and use your card every single day, you’re in a good position to get serious value from a rewards card.

...travel often?

One of the best perks of having rewards plastic is free travel! Among other things, you may be able to cash in on free flights, accommodation and hire cars, free airline lounge passes, flight upgrades and complimentary international travel insurance. Not too shabby right?

And Mozo has found that redeeming rewards points for flights or flight upgrades is actually one of the best value ways to use your rewards program. So if you’re an avid traveller, packing this plastic in your carry-on may be well worth it.

Are you...

...free of any lingering credit card debt?

As we mentioned above, the more you spend on your rewards card, the more points and freebies you’ll earn, and the easier it will be to justify the cost of carrying the card. But if you have existing credit card debt hanging over your head, it’s a good idea to blast it away before spending any more money.

If you have a lingering balance, take a look at a balance transfer card instead, and get back in the black before buying anything else.

...happy to pay an annual fee?

The trade-off for all those goodies and perks is that a rewards card will more often than not have a hefty annual fee attached, often anywhere from $50 to over $400. While that might seem like a lot, you need to remember that if you take full advantage of your rewards program, it could be well worth the price tag. For example, some cards come with a free domestic flight each year, which might justify the annual fee.

So if your budget can handle a lump sum fee each year, then a rewards card is an option for you. If not, you might want to consider a no annual fee credit card instead.

So is it right for you?

If a rewards credit card is the right fit for you, the next question is, which rewards card will suit you best? To find a piece of plastic that matches up to your freebie dreams, head over to our rewards revealer tool.If a rewards card is not your cup of tea, then you can still cash in on the convenience of plastic by opting for a low rate, no annual fee or balance transfer card.You can use our handy infographic to work out which credit card is right for you.

^See information about the Mozo Experts Choice Rewards Credit Card Awards

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