Credit Card Loyalty Schemes & Rewards Programs
Posted November 24th, 2009 and last modified April 30th, 2010
Featured Rewards Credit Card
The St.George Amplify Visa features a rewards program that gives you choice of how you’d like to be rewarded. You can choose between the Amplify Rewards program or the Amplify Qantas program. Either way you will be rewarded for each dollar you spend on your card.
- $79 annual fee
- 18.74% p.a. on purchases
- 0.99% p.a. for 6 months on balance transfers
- Cash Advance Rate of 20.74% p.a.
- 55 days interest free
- Free Qantas Frequent Flyer Rewards Program
Credit card rewards programs have become the status quo for many card offers. The deal typically works like this, you spend a certain amount and they give you points toward their program.
Those points can be redeemed for a variety of goods and services. It is one way that credit card companies not only lure you into choosing their cards but to continue spending on them once you have it. The schemes are good, because the rewards can be valuable. That being said, you ought to do your best to choose the card whose rewards incentive is the most valuable to you.
Choosing credit card rewards programs:
1. Evaluate the type of reward offered by each credit card company. There are a lot of different rewards to choose from including, but not limited to the following:
- Free airfare
- Free hotel stays
- Equipment like televisions, iPods, and stereo systems
- Qantas frequent flier members can sometimes add their rewards to their frequent flier points for a reduction in flight prices.
- Gift cards or vouchers to be used at big department stores
- Subscriptions to magazines
- Free or reduced price tickets to theme parks
2. The biggest mistake when it comes to credit card rewards programs is that people just do not use them. If you can find a reward that you will actually use then it is valuable, if not you are spending on that credit card and getting nothing but a bill in return.
3. Be wary of rewards that encourage you to spend more money. Credit card rewards points are based on your spending. The more you spend, the more points you earn. This is not a ticket to spend more then you can afford. Credit card expenditures are loans, think about that when making purchases. Are you willing to actually borrow money for your item? Is the amount you are spending worth the reward you will receive? Again, there is no value to most awards if you are paying interest to get them.
4. Will redeeming a specific reward cost you extra money? Airline miles are great, but you have to spend money to take a holiday. Accommodations, entertainment, and other expenses associated with trips should be taken into consideration when you choose your rewards program.
5. You must be diligent with your payments to get the full benefit of a loyalty scheme. Credit card companies will immediately rescind your rewards offer if you default on your payments. If you choose a credit card for the rewards do not risk losing them by missing or making late payments on your debt.
Loyalty schemes are excellent draws when choosing your credit card. The best credit card rewards programs are those that give you something you can really use without having to spend extra money. If you are able to manage all of your expenses on one high value card and repay the balance in full each month you can benefit a great deal from these schemes. Just be sure that you choose the right one and that you read all of the fine print when you apply for any credit card.
Check out today's featured offers:
| Westpac Low Rate | Citibank Clear Platinum | Qantas AMEX Discovery | ANZ Platinum |
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0% p.a. for 6 months on purchases & balance transfers |
2.9% p.a. for 12 months |
$0 annual fee Up to 10,000 Bonus QFF Points |
0% p.a. for 6 months on purchases & balance transfers |
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