Credit cards with benefits
Just like friends with benefits, your new found rewards credit card relationship can be a lot of liberating fun (except, your card hookup is more likely to have strings attached!).
Why not earn benefits from your everyday expenses and find a card that gives you some bang for your buck!
Fly in style and upgrade yourself to first class, be on Supermarket sweep whizzing round buying groceries on points, spend that gift card on that race experience you’ve always wanted to do. The world is your oyster when it comes to cards with benefits.
There are a plethora of credit cards out there with varying perks to choose from. Depending on where you shop, or how often you travel you can easily compare the different rewards programs to suit your preferences.
Let’s go into each one in detail…
1. Cards with rewards programs
Who said spending money can’t be fun!? With rewards credit cards, you can earn points each time you spend on everyday purchases with a card that’s linked to a loyalty program. Woohoo!
You can redeem points on a range of things like travel, petrol, shopping, experiences and more. However, it’s a good idea to pick a rewards program that best suits your spending habits – for example it’s futile earning points for petrol if you don’t own a car!
You’ll usually acquire a certain number of points for every dollar spent. For example xxxxxxxx And check if there’s a limit on how many points you can earn.
Many banks have their own rewards programs with a range of redeemable benefits when you accumulate points with their associated credit cards.
American Express Membership Rewards
ANZ Rewards
Citi Rewards
CommBank Awards
Bankwest More Rewards
Bank of Melbourne Amplify Rewards
BankSA Amplify Rewards
HSBC Rewards Plus
Macquarie Bank Credit Cards Rewards Program
NAB Rewards
St.George Amplify Rewards
Westpac Altitude Rewards
There are also retail rewards cards, usually in conjunction with getting deals and discounts at major supermarkets or retailers like Coles, David Jones, Myer or Woolies.
You shouldn’t spend above your means purely with the motivation to acquire more points though – this will never work out as the most cost -effective way of spending your well earned dollars. The aim of the game is to pay off the full balance of your card each month, but have earnt points for your spending without having any debt. Winner-winner-chicken-dinner!
Annual fees may apply for certain cards, sometimes these can be paid for with points, or are redeemable in travel credit. Main thing to figure out is that with this charge, the benefits you’ll gain should outway the fee.
Compare best rewards credit cards now
2. Frequent flyer cards
If you feel you see the inside of Sydney terminal more than your own living room, then a frequent flyer credit card could be for you.
Similar to rewards cards, you’ll earn frequent flyer miles points each time you spend on your card, that can be redeemable on flights, upgrades or lounge passes.
Velocity frequent flyer and Qantas Frequent Flyer are the main two culprits when it comes to flight rewards programmes.
Depending on where you travel and who you tend to fly with most often, you’ll usually be swaying towards one or the other. Although there’s nothing actually stopping you from earning points on both in terms of rules.
You don’t actually have to just spend your frequent flyer points on travel if you suddenly find yourself on terra firma. A lot of these schemes have diversified into verticals like wine, appliances, experiences, and a whole bunch of others to entice you to spend with them.
Just be weary your points don’t go as far when you spend them on these sorts of things compared to flights.
Covid-19 & frequent flyer cards
Given the unprecedented circumstances the world is facing due to the Coronavirus pandemic, you’d be forgiven for questioning if this is the right time to go for a card with flight benefits.
Whilst travel opportunities are currently limited, the skies are the limits in terms of earning points for future travel. Think about all the points earnt whilst spending money on your groceries that can go towards a siiiick holiday later once travel bans are lifted.
Compare the best frequent flyer cards on the market
3. Cashback cards
As the name suggests, spend money on your card and you’ll have money transferred back into your account. Say what!?
There are a few different types of cashback offers available – some cards offering introductory cashback promotions and others earning cash as a percentage of your spending.
An enticing offer might allure you to these type of cards, but remember like we said at the start… strings are often attached. If you sign up to an attractive cashback deal, make sure you check how long it’s valid for, or if there’s an amount you have to spend, which purchases are eligible for cashback and if there are rewards caps.
Keep in mind the cashback rate! You can learn anywhere from 1% to 5% back on your purchases. Conditions will apply of course. For example, on eligible purchases you might be offered 2% cashback, so when you spend $2,000 you’ll get $40 back into your account.
Compare the best cashback cards on the market
4. Complimentary travel insurance
Travel lots? Another great perk of many cards is the free travel insurance. Well when we say “free” remember that the card is likely to have an annual fee, so there will be pros and cons to choosing a card, just for the travel insurance depending on what type of holiday you have planned.
The annual fee of a credit card might be xxxx. A 10 day holiday to Bali could cost xxxx.
Things to bear in mind with your cover is that in order for it to kick-in, in most cases you need to ensure you pay for your holiday on the respective card in order to ‘activate’ the travel insurance.
Depending on how where you’re going, how long you’re going for, how adventurous you are, or if you have any pre-existing illnesses, just taking up the cover included in your card may not be adequate enough for your needs, so do your research.
Compare the best cards with free travel insurance
5. 0% international card fees
If you’re a frequent globe-trotter you may have learnt the hard way about foreign transaction fees – and that they can be particularly ouchy!
Credit cards with no foreign transaction fees are designed to help you save money by offering 0% fees when you spend overseas.
Most credit cards charge a fee of 2–3% on international transactions and that can soon add up. If you spend $2k on your card with a 3% foreign transaction fee you would end up paying $60 in transaction fees alone. That’ll get you at least five bottles of wine in the South of Spain. Salut!
What’s more, 0% international card fees don’t just benefit you when you’re actually overseas, but when you shop online on international sites. Can’t get those Nike xxxx anywhere but the US? Using your card with no international transaction fees means those xxxx. Every cent counts and all that.
Travel credit cards are a popular way to spend money overseas, they are universally accepted, offer strong exchange rates, concierge services and pre-authorisations for hotel bookings, among other benefits.
Which is the best rewards card?
With over x credit cards in the Australian market, it’s impossible to pick one that is best. Like all financial products it’s important to look at your needs and see if the product matches your individual circumstances rather than just picking one that seems to have the best offer.
Whilst 100k frequent flyer sign up bonus might sound exciting (we know you can already see yourself sun-bathing in Bali with a pina colada in your hand), remember that a lot more is involved when comparing the features and benefits of each card.
Compare reward credit cards with factors like the earn rate, bonus points terms, annual fee and interest rates in mind.
FAQS
Which are the different type of rewards credit cards?
Reward credit cards offer points when you spend that can be redeemed for rewards like travel, flights, shopping, gift cards, cashback and more.
Which card has the best rewards benefits?
Which card is best for airline points?
Which credit card is best for points?
Which is the best reward credit card in 2020?
No one credit card stands out better than any other. Like all financial products it’s important to look at your needs and see if the product matches your individual circumstances rather than just picking one that seems to have the best offer. No matter what kind of credit card reward you’re after it’s important to understand how you earn points, at what rate and any caps or limits that apply. As well as reading the conditions of the card in full.
