Best Credit Card Rewards – Comparing Programs

Featured Rewards Credit Card

The ANZ Frequent Flyer Credit Card is the best card to earn Qantas Frequent Flyer points as you can use the power of 2 cards on the one account, a high Qantas Frequent Flyer points earn rate and take advantage of a bonus 10,000 Qantas Frequent Flyer points if you apply by 31st July 2010.

• $95 annual fee
• 19.49% p.a. on purchases
• 2.9% p.a. for 12 months on balance transfers
• Cash Advance Rate of 20.74%
• Uncapped Qantas Frequent Flyer points1 earning

Click here to read the ANZ Frequent Flyer – Balance Transfer Option terms and conditions

Although reward programs are completely subjective to each individuals preference, there are cards which stand out among others in terms of points for dollar value.

A Universal Rewards Rule

While different programs offer different rewards, there is a simple relationship between credit cards which offer the same rewards. Lets compare 2 different reward programs to demonstrate:

American Express Rewards Maximizer – ‘Membership Rewards’
• $100 Myer Gift Card – 13500 points.
• 19.99% purchase rate and $192 on annual fees.

Commonwealth Bank Awards Card – ‘Awards’
• $100 Myer Gift Card – 16200 points.
• 20.49% purchase rate and a $89.00 annual fee.

While the American Express card requires you to spend $13200 on your card* before you can redeem a $100 gift card the annual fee is $133 more than the CBA Awards card.

In order for the American Express card to become more valuable than CBA, you would need to spend almost three times as much as the Awards card in the span of a year.

*While there are exceptions and other determining factors, such as point conversion rate, simply put: The more expensive your rewards program is, the cheaper its rewards will be. If you’re a high spender, a prestige card will benefit you whereas an everyday/regular spender would benefit from a standard rewards program.

The Influence of Interest

As mentioned frequently, reward programs become practically obsolete when you begin to pay interest on your reward cards.

Only apply for a card with a rewards program if you plan to pay your balance in full each month, otherwise you won’t be achieving the best credit card rewards. What’s the point of earning a $100 gift card when you had to pay $150 in interest to get it first?

Some rewards cards will also require you to wait a certain amount of time before you begin using rewards. Although the threshold isn’t as dominant as it used to be, some cards require you to wait ‘x’ months until you can redeem rewards.

If the minimum is 13 months for example, this is to ensure that you’ve spent an annual fee twice before redeeming anything.

While uncommon, it’s one of several reward traps that you’ll need to be on the lookout for when searching for the best credit card reward program for you.

A ‘Free’ Rewards Program

After a credit card which you can redeem rewards straight off the bat? Among a generous shopping rewards program, the Woolworths ‘Everyday Money’ card offers:

• A free $50 shopping voucher when your card application is approved. You can receive the card upon making your first purchase.
• No annual fee for the first year, followed by a low $49.
• See the official Woolworths ‘Everyday Money’ offer here.
• For more on reward cards, see our reward point guide and reward card comparison.

Westpac Qantas Frequent Flyer Credit Cards:

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
Westpac Earth Cards	Earn 1 Qantas Frequent Flyer point per $1 spend on your AMEX and 0.5 Qantas Frequent Flyer points per $1 spend on your MasterCard	19.64%	21.14%	0.99% for 6 months	$75	45
Westpac Earth Gold Card	Identical Qantas Frequent Flyer point earn rate as the Earth plus a range of complimentary insurance cover	19.64%	21.14%	0.99% for 6 months	$125	45
Westpac Earth Platinum Cards	Earn 1.5 Qantas Frequent Flyer point per $1 spend on your AMEX and 0.5 Qantas Frequent Flyer points per $1 spend on your MasterCard	19.64%	21.14%	0.99% for 6 months	$250	45

• Comparison of Top 10 Credit Card Offers

Editor's Choice: Our Top Credit Cards

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
Suncorp Clear Options Standard Visa Card	A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases.	12.24%	17.99%	1.9% for 12 months	$39	0