Types of rewards credit cards
On the hunt for a credit card that’s going to reward you for spending? If so, you’re in the right spot! This guide will take you through all the different types of rewards credit cards you can choose from. With so many reward card options out there, find one that you will benefit from most, with perks to suit your lifestyle and needs.
See some of our top cards below.
Rewards Credit Card Comparison Table - rates updated daily
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
Estimated points earned
Qantas Frequent Flyer$450100,0001.25 points uncappedQantas 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
Estimated points earned
Qantas Frequent Flyer$395 $295 in the first year110,0001 point up to $5,000/month, then
0.5 points up to $20,000/monthQantas 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
- 110,000
- 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
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
Estimated points earned
Qantas Frequent Flyer$0No current offer0.75 points uncappedQantas 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
Estimated points earned
Qantas Frequent Flyer$25030,0000.66 points up to $3,000/month, then
0.33 points up to $6,000/monthQantas 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
American Express Velocity Escape Card
Earn up to 1.75 Velocity Points. Have limited stress with the Velocity Escape with no annual fee. Credit Card Provider of the Year in the Mozo Experts Choice Awards 2020^. T&C’s apply
Rewards program
Annual fee
Bonus points
Earn rate per $1
Estimated points earned
Velocity Frequent Flyer$0No current offer0.75 points uncappedVelocity Escape Card
Earn up to 1.75 Velocity Points. Have limited stress with the Velocity Escape with no annual fee. Credit Card Provider of the Year in the Mozo Experts Choice Awards 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
- 55
- 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
- 7,800 points
- 119,600 points
- 19,500 points
- Card Benefits
- Purchase Protection,
Account alerts by SMS
Read our Mozo Review to learn more about the Velocity Escape Card
The different kinds of rewards credit cards
Flight rewards:
Many banks and financial institutions offer frequent flyer credit cards. These cards are directly linked to an airline's frequent flyer program such as the Qantas Frequent Flyer program or Virgin Velocity Frequent Flyer program. So each time you use your frequent flyer credit card you will accumulate Qantas or Velocity points.
Pros
- Best value of the rewards cards out there
- Receive free flights just for spending money
- Great for those people who love domestic or overseas travel
- You can redeem points for travel rewards such as flight upgrades, airline lounge, hotels and car hire
Cons
- It may take a couple of years to earn enough points for an overseas flight
- With some frequent flyer programs, the points can expire
Cashback cards:
These reward credit cards appeal to just about anyone! With cashback rewards credit cards, accumulated points are converted to cash. Some cashback cards will issue a cash voucher or credit a cash amount back to the account. For example, if you have an annual spend of $17,000 on your Westpac Altitude Rewards Card, you’ll receive $104 cashback. Compare the best cashback reward cards here!
Pros
- Money in your pocket each time you make a purchase using this credit card!
- Bonus benefits may include free travel insurance, concierge service and fraud protection.
Cons
- If you don’t use this card often you will not be rewarded.
- Some cards have a cap on the value of cashback you can receive over a certain period of time.
Shopping reward cards:
If you deem yourself a shopaholic, than a shopping rewards credit card could be best for you! With these cards you can earn points when you shop at retail stores, supermarkets and even when you purchase petrol. For example when you shop at Coles you can swipe your Flybuys credit card to earn points or when at Woolworths you can accrue points with an Everyday Rewards credit card. Points can then be redeemed for vouchers so you can enjoy discounts when you do the weekly grocery shop at Coles or Woolworths or at BP or Shell when you fill up with petrol.
Pros
- Be rewarded for making everyday purchases.
- There’s a range of rewards to choose from to suit your shopping habits.
Cons
- You may not receive the best value for points.
- These cards have a hefty annual fee and high interest rates.
What to consider when choosing a rewards credit card
There’s so much talk about rewards credit cards, they’re advertised on TV, appear in our junk email and are even plastered across buses. So what do you need to look for when signing up for one of these cards? Take the time to ask yourself the following questions when you do your research, this will help narrow your decision. Also, use the nifty Mozo Rewards Revealer Tool to find the card that best suits you.
Q1. Do the points expire? Try and find a rewards credit card where the points don’t expire. It would be a waste of a money earning points only to have them washed down the drain by the time you want to redeem them. Each type of rewards credit card has different regulations around expiry of points.
Q2. Is there a points capping? Look for a rewards credit card that doesn’t limit your annual points earning or place other restrictions on your points or rewards. If there is a limit, make sure it isn’t so low you don’t get any value from the rewards on offer.
Q3. What are my interests? Consider a card that will reward you for things that you are interested in. There’s no point signing up for a frequent flyer rewards card if you have a fear of flying or no real interest in travel. Think about your lifestyle, hobbies and interests and that will help you in deciding a rewards credit card that you will get the most value from.
Q4. How much is the annual fee? The annual fee for rewards credits cards is significantly higher than a credit card without any rewards attached. So make sure when you compare rewards credit cards you take into consideration the annual fee.
Q5. How much are the points worth? Generally speaking, most reward cards have a standard equation of $1 equals 1 point. However some cards may have a higher or lower value depending on the brand. For example, $1 spent on AMEX may earn you 3 points but only one on Visa.
Rewards credit card fees and interest
You may be rewarded for your spending but like all credit cards, these handy pieces of plastic do come with fees, charges and a high interest rate.
- Interest: Banks and financial institutions do charge hefty interest rates for rewards credit cards usually between 19-22%. So make sure you pay off the full amount owing on your statement to avoid being charged interest.
- Annual fee: It’s hard to dodge the expensive annual fee of rewards credit cards! It’s the most of all types of credit cards and can range from $100-$450. Make sure you choose a card where the annual fee doesn’t cost you more than what you’ll receive in rewards value.
- Cash advance fee: Avoid using your rewards credit card to withdraw money from an ATM if not you’ll be slapped with a cash advance fee. Your provider will charge a withdrawal fee of around 3% on the amount you take out plus you will be charged interest on that money which can be as high as 20%.
- Currency conversion fee: When you use your credit card overseas or when you shop at an international online store your provider will charge you a currency conversion fee of around 3% of the Australian dollar amount.
- Reward membership fee: There may be a fee for joining or becoming a member of a reward program such as frequent flyer. However check with your provider as they may waive this membership fee.
- Late payment fee: Fail to pay your credit card bill by the due date and you’ll be hit with a late payment fee of around $30. This fee can be easily avoided by setting up a direct debt or automatic transfer. For tips on avoiding credit card fees click here!
Top 10 tips for redeeming and earning reward points
1# When possible always use your rewards credit card to make purchases.
2# Pay for bills with your rewards credit cards.
3# Shop with affiliated partners.
4# Fly with the airline and the partner airlines of your frequent flyer loyalty program.
5# When redeeming points ensure you are getting the best value for your reward.
6# Take advantage of bonus points offer.
7# Make sure you redeem your points before they expire.
8# You’ll get the best value for your points by redeeming them for flights not shopping rewards.
9# Sign up to e-newsletters so you can be alerted to special offers to earn bonus points.
10# Don’t forget you can earn points when you wine and dine at restaurants affiliated to your rewards card.
Who is a rewards credit card suited for?
- People over 18 years.
- You must have an impressive credit rating to be approved for a rewards credit card.
- You need to have an annual minimum salary of around $35,000.
- This card is best for people who are going to pay their credit card bill in full and on time.
- People who are big spenders and regularly use their credit card.
- Check out our guide onapplying for a credit card, it will help make the application process a lot smoother!
^See information about the Mozo Experts Choice Rewards Credit Cards Awards
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