Rewards Program Tips
Whether you want to look at credit card rewards as an added bonus or you plan to utilise every available dollar to earn rewards quicker, it is worth checking out these rewards program tips. While these pointers do not necessarily apply to every single rewards credit card, it is common to find special conditions that may affect the way you use your card.
When you find a rewards credit card that appeals to you, our advice is to read the terms and conditions carefully. Usually, these are available on the relevant financial institution's website and should be easy to understand. If there are any causes for concern, you can then contact the chosen financial institution and ask any questions.
Check out the following tips to maximise the benefits of your credit card rewards program:
- Look at the overall value of the credit card to your needs. Any excessive fees, charges or interest you pay on transactions could undo any value you gain from earning rewards points. For this reason, we especially like rewards credit cards with interest free periods.
- One tactic to earn rewards is to use your credit card as much as possible, and you may also have an additional card that you give to a partner that also earns points. This is a great way to earn rewards but you must be vigilant with paying off your card quickly and avoiding overspending that will cause expensive credit card debt.
- Usually, only the account holder can claim rewards. However, additional cardholders can contribute points with their purchases.
- Look at the minimum spend needed to earn rewards, and the points it will take to earn a reward that you really want. Every credit card rewards catalogue offers different value for different products.
- Be realistic about how long it will take to earn the rewards points you need. For many of the top gifts and merchandise, it would take the average credit card user several years to earn enough points to claim these redemptions.
- Bear in mind that points plus pay transactions often don't earn you additional points.
- Common transactions that do not earn you points include - Bpay payments, cash advances, balance transfers, government charges, bank fees and charges, disputed transactions, purchases made when your account is not in good order (such as when minimum repayments are not met). Check the terms and conditions to find out specific exclusions for your card.
- Bonus points are great ways to earn extra points, but when viewing bonus partners, remember to assess how much you will use a particular business when determining the true value of the program.
- If earning points for travel is important to you, make sure the rewards program has a good travel booking service. Many rewards programs let you use points to book airfares from a range of airlines on the market.
- Swapping points to an airline rewards program (like Qantas Frequent Flyer or Velocity Rewards) is often done at a disadvantage. If this is a real consideration for you, perhaps you should consider a dedicated airline rewards credit card that links directly to the chosen airline rewards program of your choice. For example, American Express has credit cards that link directly to your chosen Qantas Frequent Flyer account.
- When swapping points to airline rewards, take note of the minimum parcel of points you can swap. Often you have to swap points in large multiples (for example, 5000 points at a time).
- Look at the maximum number of points you can earn with a card. Don't be put off by a maximum cap if it is beyond your spending potential - it's more important to choose a card that offers value to you. For example, it is no good choosing a platinum card with a high annual fee if you don't use the features and it pushes the limits of your earning potential.
