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Eight tips for choosing a rewards credit card
Australians looking to earn maximum reward points per dollar spent on their everyday shopping should consider eight top tips for choosing a rewards program.
In order to maximise reward points earned on groceries and petrol in particular, consumers should consider a rewards program that offers both American Express and Visa or MasterCard Cards, according to consumer advocate, Credit Savvy.
Most major supermarkets and petrol stations accept these cards without charging a surcharge.
Also read: Woolies scraps frequent flyer points
“For the average consumer looking to get something back from their everyday shopping there are options for cards with annual fees of $100 and under, including the Westpac Altitude or the NAB Qantas Rewards Card,” said Credit Savvy managing director, Dirk Hofman.
“There are programs with higher earnings ratios but since they generally have higher annual fees, consumers need to do their homework and carefully consider the different offerings and see if they offer value for money,” added Hofman.
Top tips for choosing a rewards card
Consider how much you will be spending on a card each month.
Consider the annual fee and if the value of the points earned per year exceeds the annual fee.
If your card carries a balance, consider if a low rate card is a better option for you, as your interest charges are likely to exceed the value of any points earned.
Check the earnings ratio per dollar spent.
Check if any points earning caps apply.
Check if any minimum credit limit applies.
Check if your credit card comes with complimentary benefits like travel insurance or purchase protection and if you are likely to use these benefits.
Check your credit score using a free service, such as Credit Savvy, before you apply and don’t unnecessarily apply for products as this may negatively impact your credit score.
Also read: Credit card costs remain an unknown
Major rewards credit cards
Provider | Rewards Card |
American Express | The American Express Velocity Escape Card |
ANZ | ANZ Frequent Flyer Platinum |
Bankwest | Bankwest Qantas Platinum MasterCard |
Citibank | Citi Qantas Signature Credit Card |
Commonwealth Bank | Commonwealth Bank Platinum Awards Credit Card |
HSBC | HSBC Platinum Qantas Credit Card |
NAB | NAB Qantas Rewards Card |
St. George | St. George Amplify Card |
Virgin Money | Virgin Australia Velocity Flyer Card |
Westpac | Westpac Altitude Card |
