Rewards Credit Cards

Methodology: How we chose our rewards cards

Every month, our credit card experts analyse over 250 credit cards on the market. We narrow it down to credit cards that offer rewards, then rank these cards based on valuable features including bonus points, cashback and annual fees.

All our picks are for rewards cards available through Finder, meaning we have a commercial partnership with the bank or brand. The right rewards card for you may be different from our picks, so make sure to compare a range of cards before choosing one.

How do rewards credit cards work?

A rewards credit card usually earns points for every $1 you spend on purchases in Australia and overseas (including online). The points are credited to your account or a linked loyalty program, where you can redeem them for rewards that range from flights and hotel bookings to gift cards, cashback and retail items.

There are also a few credit cards that offer cashback instead of points.

Pros and cons of rewards credit cards

Types of credit card rewards in Australia

Credit card rewards can be separated into 3 main categories: frequent flyer, points and cashback.

Frequent flyer rewards

If you're a member of a frequent flyer program, you can use a credit card to earn more points or miles in 2 ways:

1. Frequent flyer points per $1 spent

Credit cards that are directly partnered with a frequent flyer program let you earn frequent flyer points on your eligible spending. Points are automatically added to your frequent flyer account once a month (or at regular intervals).

In Australia, the main options are Qantas Frequent Flyer and Velocity Frequent Flyer credit cards.

2. Reward point transfers to frequent flyer programs

A lot of rewards credit card let you transfer points to different frequent flyer programs. This gives you more flexibility because you're not locked into earning points for one airline loyalty program.

It's also a way to earn points with programs that don't have co-branded cards in Australia, including Singapore Airlines KrisFlyer, Cathay Pacific Asia Miles and Emirates Skywards.

Points for bank and other loyalty programs

Many rewards credit cards in Australia earn points that you can redeem for different types of rewards, including gift cards, retail items, credit on your account, travel or point transfers to other loyalty programs. These flexible rewards programs include:

Cashback credit cards

These credit cards give you a way to get cash rewards for your spending, either in the form of credit back on your account or vouchers you can spend.

Some cashback credit cards give you a set percentage of your regular spending as cashback on your account, while other cards have introductory offers that provide a one-time account credit or voucher when you meet the spend requirements.

How to compare rewards credit cards

From earning points to the rewards you want to redeem, here are some of the questions and factors to think about when you're comparing rewards credit cards:

1. How can I earn points?

• Bonus point offers. These can give you a huge amount of value when you get a new card. Usually, you need to meet a spend requirement in a set period of time to score bonus points.
• Points per dollar. Also known as the earn rate, this is how many points you earn for your spending. The higher the better, but a card that earns at least 1 point per $1 on eligible transactions would be considered good value.
• Point expiry and caps. Some credit card reward points expire after a certain amount of time and some have a limit on how many points you can earn in a month or year.

2. What's the value of the rewards?

• Point values. To work out the value of your rewards, consider how many points you would need to redeem a chosen reward. For example, let's say you need 12,000 points to get a $50 gift card and your credit card has an earn rate of 1 point per $1 spent. You would need to spend $12,000 before you could redeem the $50 gift card. Calculating reward point values like this can help you decide if it's worth your time and money.
• Rewards partners. Rewards programs sometimes partner with retailers and businesses to give you more ways to redeem points. You may also have the opportunity to earn bonus points with partner stores. If there are partners you already shop with, this could help you earn and redeem points faster.
• Redemption limitations. Some rewards programs have blackout periods when you may not be able to make redemptions, or limits on items in the rewards store. Check the fine print for this information.

How much do you need to spend to get rewards?

To give you an idea of the potential value of rewards, we've compared the amount of points you need to redeem a $100 gift card through major rewards programs that are linked to credit cards.

Fees, points and redemption values correct as of July 2023.

Based on this table, the minimum spend required for a $100 gift card (or equivalent) is $10,000 with American Express Membership Rewards or Flybuys if your credit card offers 2 points per $1 spent.

3. What are the costs?

• Annual fees. Rewards credit card annual fees range from around $50 to $1,450 in Australia. Some rewards credit cards offer no annual fee for the first year or ongoing. Just keep in mind that the value of the rewards you redeem should be higher than the cost of the annual fee to make it worthwhile.
• Purchase interest rates. Rewards credit cards typically have high interest rates for purchases, which can be up to around 24%. If you pay the card off as you go, or in full by the statement due date, you'll usually get interest-free days for purchases. Otherwise, the cost of interest could outweigh the value you get from earning points.

The annual fee and interest rate for purchases are 2 key costs to factor in when you're comparing rewards credit cards. But there are other costs that could also affect the value you get from a card in more specific situations.

• Other costs to compare

  • Foreign transaction fees. Reward credit cards typically charge a fee of 2% to 3.4% for transactions made overseas or online with a business based overseas – including some cards that offer more points per $1 for foreign transactions. So if you want a rewards card for travel or online shopping, check this fee first. You can also compare no foreign transaction fee cards on Finder.
  • Balance transfer interest rates. A 0% balance transfer offer could help you save if you move a balance from one card to a new rewards card. But you won't earn points for the balance transfer, and may be charged interest on new purchases while you're paying it off. So it's typically wise to focus on repaying it before using the card to earn points on new purchases.
  • Cash advances. If you use a rewards credit card to get money from an ATM or for another cash advance transaction, you'll be charged a cash advance fee of around 3%. Most cards also have higher interest rates for cash advances (up to around 30%). And you don't earn reward points for cash advances.

4. Are there any complimentary extras?

Rewards credit cards often come with a variety of additional features that can add value if you use them. Popular perks include:

• Complimentary international travel insurance
• Airport lounge access
• Complimentary flights and travel credits
• Extended warranty cover
• Price match guarantees
• Concierge services

I change my rewards credit card every year to get the best value from bonus points offers. I redeem my bonus points for gift cards or flight rewards and it usually brings in about $500 worth of value. You just have to be vigilant with paying off your card, closing the account before incurring the next year's annual fee, and not churning too frequently because it could affect your credit score.

— Jessica Prasida, publisher

Frequently asked questions

• What's the biggest credit card bonus point offer on the market?

  Finder's database shows that the Citi Prestige Card has the biggest bonus points offer, with 275,000 Citi Rewards Points when you spend $10,000 in the first 3 months. That's enough for $1,300 of Woolworths WISH gift cards or 110,000 Velocity Points based on details listed on the Citi Rewards website.

• Can I earn reward points for BPAY payments?

  It's unlikely but does depend on the rewards program and credit card provider. For example CommBank, Westpac, St.George and Virgin Money all list BPAY payments as ineligible to earn rewards.

  While other credit card issuers (such as ANZ) doesn't specifically list BPAY transactions as ineligible for points, that doesn't mean you will earn points. Or that you'll be able to use a credit card for a BPAY payment. Check the terms and conditions or ask your provider for details specific to your card.

• How do I redeem credit card reward points?

  Every rewards program is different, but here's a general guide to the process of redeeming points:

  1. Log into your account
  2. Browse the rewards and choose one you want
  3. Check that you have enough points or can use points plus pay
  4. Confirm the details and follow the prompts to complete your redemption

• Who can apply for a rewards credit card?

  Anyone aged over 18 can apply for a credit card when they meet the bank or lender's eligibility criteria. This typically includes:

  • Minimum income requirement. This can range from $35,000 per year for a basic rewards card to over $100,000 for a premium card. Even when there is no specific minimum income amount listed, your income will need to be enough to manage at least the minimum credit limit, account fees and interest charges.
  • New cardholder status. Many introductory offers require you to be a new cardholder that hasn't held a similar card (or one from the same brand) in the past 12-18 months.
  • Residency status. Some lenders require you to be a citizen or permanent resident, while others allow visa holders and temporary residents to apply as well.
  • Credit history. All credit cards require you to have a good credit history and not be an undischarged bankrupt or have any judgements against you.

  If you're eligible to apply, you'll also be required to provide documents including payslips and proof of identification. The provider will then assess the details you provide to determine whether you'll be approved based on their criteria and responsible lending requirements.

• How can I meet the minimum spend requirements for bonus points?

  With most credit card bonus points offers, you need to spend a certain amount in the first few months or over another period of time. It's important to only spend what you can afford to pay off so you don't end up with interest charges that take value away from the points.

  Here are examples of different ways to meet the minimum spend requirements.

  • Booking travel
  • Buying major household items (e.g. a lounge or fridge)
  • Buying a new laptop, tablet, phone or other tech
  • Pre-paying your health insurance or other bills
  • Paying for car services or repairs
  • Seasonal shopping (e.g. school holidays, Christmas)
  • Paying for everyday expenses (e.g. groceries, fuel, subscriptions)

  Bonus points are typically added to your account within 1-12 weeks of when you meet the spend requirement. But it depends on the offer. You can check the fine print or call the credit card company to find out when points will be added to your account.

• Are rewards credit card worth it?

  It's worthwhile if you get more value from rewards than what you're paying for the account. This makes rewards cards more suited to people who already use a credit card regularly and/or can repay what they spend each month.

  When comparing your options, ask the following questions:

  • How much is the annual fee? Reward and frequent flyer credit card annual fees can quickly outweigh the value of rewards, even if you're getting thousands of bonus points.
  • What are the potential interest costs? Estimate how much you could end up paying if you carry a balance on the card to decide if the risk is worth it for you. For example, if a credit card had a 19.99% p.a. purchase rate, a minimum spend requirement of $3,000 in 3 months to get bonus points and it took you 6 months to pay that amount off, you'd be charged around $177 in interest.
  • How much are the points worth? Look at the value of the points based on what rewards you want to redeem. For example, if 100,000 bonus points was worth $500 in digital gift cards, that could help justify a card's annual fee. It's worth looking at a few reward options for any card offering bonus points. You can also calculate the dollar value of your points.
  • When do you want to use your points? The time it takes for you to earn enough points for your ideal reward could be a few weeks. But it could be a lot longer if you're saving up points per $1 spent or waiting for a particular reward to become available (especially flight rewards). So it can be helpful to have a timeframe in mind, then work out how many points you'd realistically earn through the card.

• What happens to reward points after a death?

  Depending on the card and rewards program, the points could be transferred to another person, converted into a statement credit or cancelled.

  You can find details for your rewards program by looking at the terms and conditions, or by asking the provider. They should also let you know what options are available when they're notified of someone's death.

Finder Award winner and finalists for 2024

Find out which brands ranked highly at the Finder Awards for rewards credit cards.

The ANZ Rewards Black Credit Card is our top rated rewards credit card for 2024. In the 12-month period we analysed for this year's Finder Credit Card Awards, it scored highly for its big bonus and high earn rate of 2 points per $1 on eligible spending. The card also offers complimentary travel insurance.

The Coles Rewards Mastercard scored highly for its bonus points offers and earn rate. The card earns 2 Flybuys points per $1 on eligible spending up to $3,000 in a statement period and 1 point per $1 after that. Its $99 annual fee also scored well for cards in this category.

The St.George Amplify Signature has a big bonus point offer and reduced first-year annual fee during the 12-month period we analysed. It scored well for its earn rate of 1.5 points per $1 on all eligible spending. This card was also a finalist in 2023.

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Each year the Finder Credit Card Awards recognises the top credit cards in Australia. Using 12 months' worth of data, our experts have analysed the rates, fees and offer details from over 270 cards.