How to choose a rewards credit card and start earning points

Rewards credit cards are pretty much what they sound like – a credit card that rewards you for every eligible purchase! These rewards often come as points, miles or cashback that can stretch your dollar even further and deliver some terrific perks when travelling or at home.

Different types of rewards credit cards

Not all rewards credit cards are the same as it depends on the loyalty program they’re associated with. Travel reward cards allow every dollar you spend to be turned into points that go towards flights, hotels, car hire and travel experiences. General reward cards let you redeem points for a wide variety of products and services like electronics, luggage, beauty products, experiences, hotels and even personal services like massages.

Then there are supermarket reward cards that provide incentives for shopping with a particular supermarket and its affiliated partners. However, there are crossovers. Some points accumulated with general rewards and supermarket rewards cards can also be redeemed for travel. For example, Qantas Points-earning credit cards help you earn Qantas Points to use on travel - such as flights and hotels as you’d expect, but they can also be used for a wide variety of other products like electronics, appliances, clothing and more. Head over to the Qantas Marketplace to find out how you can use your Qantas Points for things other than travel.

Maximising the points you earn

When thinking about points, it’s important to look at the earn rate. Some rewards credit cards have an earn rate ratio of 1:1 which means that you earn 1 point for every dollar spent, while others offer higher or lower earn rates. There are often promotional periods or offers where your earn rate can increase, so keep your eyes out for opportunities to maximise your points. Once you have the card, you’ll start accumulating points for every eligible purchase you make. The more you spend, the more points you accumulate.

Using your rewards credit card for recurring payments like bills, other everyday expenses like petrol and coffee, as well as the big ticket items like white goods will help you quickly accumulate more points.

Rewards credit card fees

The value you get from accumulating points typically comes with some fees (otherwise it’d be too good to be true!). Most cards come with an annual fee which you often have to pay when you first open your card then every subsequent year that you have your card. Some providers have a reduced fee for the first year so make sure you check what the annual fee is for the second year.

If you plan to use your card overseas, look at the foreign transaction fee to make sure you maximise the value of your purchase. Some rewards cards charge a fee when you use your card outside the country of issue, or when you make purchases in foreign currencies — including online purchases from overseas vendors. Don’t forget about the interest rate charges, which can be minimal if you manage your spend and repayments.

Is a rewards credit card right for you?

There are so many different types of credit cards through many different providers. When choosing a rewards credit card, ask yourself how you’d like to use the card and how you plan to use the rewards. For example, if you travel regularly (even just one trip a year), you might want to choose a card that favours Qantas Points that can be redeemed for flights, travel insurance, car hire, hotel discounts, lounge access and dining experiences. Consider your income and future repayment ability to help you maximise your points and minimise interest payments and fees.

Find the Qantas Points-earning credit card that’s right for you: Compare credit cards that earn Qantas Points.