Credit Card Rewards Programs

Discover the different credit card rewards programs available. Understand how to gauge the real value of a program by working out how much your points are worth in dollar terms.

Best Rewards Credit Card

The Westpac Earth Gold gives you maximum Qantas Frequent Flyer points earning potential and a limited time only balance transfer deal

• $125 annual fee
• 19.64% p.a. on purchases
• 0.99% p.a. for 6 months on balance transfers
• Cash Advance Rate of 21.14%

Click here to read the Westpac Earth Gold Card terms and conditions

These days, credit cards are more than simply the means to purchase items now and pay for them later; for many people, if a card it to be a serious contender, it must have a credit card rewards program attached to it.

Choosing a credit card rewards program

If a credit card rewards program is more important to you than the interest rate or annual fee, then you should be looking to choose one that offers the kind of rewards you are most interested in receiving. These are the most common type of rewards programs:

General Rewards

A certain number of points are awarded per dollar spent, which can then be redeemed for rewards across a wide range of products/services that are provided by the program partners.

Frequent Flyer Rewards

These credit card rewards programs give the card user points that can be exchanged for Frequent Flyer points with a certain airline, and also with its partner airlines. They can also offer other travel-related rewards, and non-travel rewards to make them more appealing to a broader range of consumers.

CashBack Rewards

These are extremely popular as they operate on the simple principle that you receive a percentage of your credit card spend back as a credit to your account.

Instant Rewards

These credit card rewards programs do not operate on a points system; instead they provide instant discounts when the customer uses their card at participating merchants.

Retail Rewards

These are retail loyalty credit cards that reward the customer with gift vouchers to be used at the store named on the credit card. Points can be earned when shopping anywhere, but more points are awarded when shopping at the “home” store. Examples are the David Jones American Express credit card and the Woolworths Everyday Money credit card.

Key questions with credit card rewards programs

• Does the rewards program suit my card spending habits?
• Does the rewards program offer rewards I want to receive?
• Am I charged for being a member of the rewards program?
• How many points per dollar are earned, and what is the actual worth of these points when redeemed?
• Are bonus points available and with which bonus partners?
• Will the rewards points expire?
• Is there a cap on how many points can be earned in a year?
• Is it easy to find out what rewards are available?
• Is it easy to redeem points for rewards?

Remember that the potential value of any points earned with a credit card rewards program will be negated if you fail to clear your balance in full each month and end up paying interest.

Points Value

Also keep in mind that the points per dollar ratio is not the real issue. The most important consideration is how your points then translate back into dollar value. This is a matter of working out how many points you need to earn to redeem for the value of $1. If you need 7,000 points to get a $50 gift card, then you need 140 points for each $1. Until you know what this conversion rate is, you won’t really know the true value of your credit card rewards program.

• 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