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5 tricks to help you redeem rewards faster
Sally McMullen, finder.com.au
Loyalty programs are an easy way to get extra value from every dollar you spend, but how can you ensure that your rewards program is actually rewarding you? From spending with a reward credit card to knowing the best way to redeem your points, here are five simple tips to help you get the most out of your loyalty program.
Earn points with your credit card
You can earn reward points on every dollar you spend with plastic with a reward or frequent flyer credit card. These cards are usually linked to frequent flyer programs (such as Qantas or Velocity) or the card issuer’s own scheme (such as American Express Membership Rewards or CommBank Awards). How many points you’ll earn per dollar spent will vary between cards.
Some of these cards boast massive introductory bonus points offers. You’re usually required to meet a minimum spend requirement, but bonus points can be as high as 100,000 points. For example, the American Express Qantas Ultimate card is currently offering cardholders 100,000 Qantas Points when they apply by 2 October 2017 and spend $1,500 within the first three months.
These cards sometimes come with higher annual fees and interest rates than other cards, so make sure that you’re paying your balance in full and earning enough points to outweigh the cost. You can also use Money Smart’s guide on reward schemes to decide if signing up for a loyalty program is right for you.
Shop with partnered retailers and merchants
If you belong to a frequent flyer program such as Qantas and Velocity, you can earn points on everyday purchases on the ground as well as in the air. For example, did you know that you can earn Qantas Points with Deliveroo and Velocity Points when you pay for Wilson Parking? If you have a credit card, some issuers such as Amex will occasionally offer cash back when you shop with specific retailers. From restaurant reservations and gym memberships to retailers and petrol stations, you can earn points on practically anything if you know where to shop.
Also read: How I’d invest $10,000 today
Look out for bonus points promotions
As well as offering introductory bonus points on credit cards, rewards programs regularly run offers that can help you earn more points. For example, Qantas is currently offering first-time Airbnb customers a bonus 500 points when they book their first Airbnb stay. In August, flybuys offered members 250 bonus points when they topped up their Opal card at Coles. Keep an eye out for any notifications in your email inbox regarding these types of offers.
Climb the reward tiers
Frequent flyer programs often reward members with a “status” when they reach a certain number of points or credits in a specific period of time. For example, Qantas Frequent Flyers can move to Bronze, Silver, Gold, Platinum and Platinum One status tiers and Velocity offers Red, Silver, Gold and Platinum statuses. The perks depend on the tier you’re in, but some benefits you can expect include bonus points and higher earn rates, complimentary airport lounge invitations, priority upgrades and VIP check-in.
Know how to spend your points
Most rewards programs offer members multiple ways to redeem their points, usually ranging from flights and travel perks to gift cards and merchandise from an e-store. However, not all rewards will offer you equal value for your points. Generally, your points are best spent on flights and upgrades. If you’re weighing up how to spend your points, consider the retail value of the reward you’re considering and how many points are required to get it. This will help you determine the dollar value of the points you’re spending and work out what will offer you the most value for your money.
For example, at the time of writing, you need 41,250 Qantas Points to redeem a $250 David Jones gift card from the Qantas Store. Meanwhile, you could redeem an economy flight from Sydney to Johannesburg (worth roughly $1,500 to $1,900) or a business flight from Melbourne to Auckland (worth roughly $800 to $1,600) for fewer points than this. In this example, it’s obvious that redeeming your points for a flight will offer you more bang for buck than opting for a gift card.
So, there you have it. Five simple steps that you can work into your everyday spending to help you get more rewards from your loyalty program. Happy points hunting!
