Best Rewards Credit Card
Best Credit Card Rewards for 2017 comparison
We compare the latest credit card rewards of 2017 to help you select the best Rewards Credit Card where earn rates, redemption opportunities and points capping are all integral to accessing the best choice for you.
Credit Card Reward programs offered with many credit cards are customer loyalty programs which reward cardholders for using their credit card to pay for eligible purchases. There’s a range of credit card rewards programs offered by the credit card providers though they all operate in much the same way, with higher frequency of use of the card earning greater rewards points
Comparison of Credit Card Rewards Programs
Ultimately a credit cards primary purpose is to provide a convenient means of paying for purchases that are then paid for, on a future date, by repaying the credit card provider. Keeping this primary purpose top of mind is a fundamental step when comparing Rewards Credit Cards, as it is easy to get sidetracked and focus on accessing the rewards offers, before the costs and charges associated with card usage have been considered.
What card costs and charges should be considered in the comparison of rewards credit cards?
Purchase Interest Rate - The rate of interest that any purchases you make with the card will incur if you do not clear the balance in full each month.
Cash Advance Rate - The rate of interest any cash withdrawals you make using your card will incur.
Interest Free Days - The number of days that your purchases will incur no interest so long as the monthly balance is repaid in full each and every month.
Annual Card Fee - The fee charged to hold the credit card, charged annually on the anniversary date of holding the card.
Rewards Membership Fee - If the credit card is aligned to a specific loyalty program, that loyalty program may charge a membership fee that is generally an annual fee.
Late Payment Fee - When a monthly repayment is made late a late payment fee maybe added to your account.
Cash Advance Fee - When making a cash advance from your credit card you maybe charged either a fixed or % of the amount withdrawn as a fee for the transaction.
How many reward points will I earn?
In conjunction with the comparison of the costs of the credit card outlined above your comparison should consider the points earning potential of the reward credit cards. The point earning potential of each reward credit card is driven by 5 factors:
1. The earn rate of the reward credit card
This is the number of points that you are rewarded for each $1 spent using your reward credit card on eligible transactions (more about these later). This earn rate typically falls into the range of 0.5 points up to 3 points per $1 spent, with the higher earn rates generally being offered by the more premium credit cards (Platinum and Black Credit Cards) which also tend to come with the higher annual card fees. Higher earn rates are also available when the card is used to make purchases with Partners of the Card Provider, so for example if you use your card to book a flight with Qantas a “partner earn rate” maybe applied which for example could be double your standard earn rate.
2. Introductory Bonus Points
The rewards credit card market is highly competitive and one benefit that all the card providers use to entice you to select their reward credit card over a competitor card, are generous reward point sign on bonuses. Some of these bonuses may require certain spend thresholds to be reached before the points are allocated, offers of upto 60,000 bonus points are frequently available with Citi and American Express leading the way with high bonuses.
3. Eligible Purchases
Rewards points are only awarded on spend made on eligible purchases, these eligible purchases vary slightly by card provider but generally include everyday purchases and exclude balance transfers, utility bills and ATO transactions.
4. Points Expiry
Some rewards points have an expiry date, which is generally in the range of 24-36 months. Having earned the points you should look to select a reward credit card that will allow you to redeem your points in a timeframe acceptable to you.
5. Points Capping
Many rewards credit cards limit the number of points which can be earned across a defined time period, usually monthly or annually. Once this “cap” is reached any spend you make using the credit card will not be rewarded with points. A limited number of credit cards offer no points capping, but they are becoming more scarce each year as the credit card providers gradually phase this feature out.
Accelerating your points earning ability at no cost - companion credit cards
Over the last few years many card providers have introduced companion credit cards that are specifically designed to help maximize the points earned from using your credit card. These companion cards see you have 2 credit cards, with each having a different reward point earn rate, generally the card with the higher earn rate is accepted in less places than the 2nd card, and so the 2nd card ensure, you will always have a credit card which has wide acceptance, though wherever possible you will use the higher earning card.
What is the real value of the points earned?
Calculating the real dollar value of the points earned from each reward credit card is a good approach to allow you to compare apples with apples and get at true comparative value of the points being offered by the rewards credit cards. To make this calculation simply identify a reward you are interest in redeeming your points for, then take the points required to attain the merchandise, say 10,000 points, look up its retail price, say it’s $100 and then divide 10,000 by $100 which gives you the value of $100 which is what you will need to spend for every point.
Best Introductory Bonus Point Offers for Qantas Points and Velocity Points
55,000 Bonus Qantas Points Full Card Details >>
Annual fee $450, no points cap, Complimentary Insurances
50,000 Bonus Velocity Points Full Card Details >>
Annual fee $375, no points cap, Complimentary Insurances
Comparison of Qantas Reward Credit Cards - With many of the major credit card providers now partnering with Qantas to provide Qantas Points as a reward option for credit card spending, Qantas Frequent Flyer members have the opportunity to add further to their points balances just through their everyday spending. Read more
Comparison of Velocity Rewards Credit Cards - Virgin Airways has followed Qantas and launched a range of rewards credit cards in partnerships with many of the major providers including American Express, NAB and Virgin Money. These cards offer generous Velocity point earn rates and often feature introductory bonuss point offers. Read more
Credit Cards with Sign up Bonus Reward Points - The majority of credit cards with rewards programs now use sign up bonuses to entice applicants to apply for their credit card, these sign up bonuses can range from 5,000 upto 50,000 reward points. Read more
ANZ Qanats Frequent Flyer Credit Cards - As an innovator in the rewards credit card space ANZ consistently offers some of the most competitive Qantas Credit Cards with generous point earn rates and market leading introductory Qantas Point Offers. Read more
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creditcardselector.com is one of Australia's leading credit card comparison websites. creditcardselector.com offers compared on this page are from our participating card providers. The Active Card List of cards displayed on this site are not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms "Featured", "Best" and "Top" are not product ratings and are subject to our Terms and Conditions. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.