With energy prices rising, switch to a cheaper plan
Compare Prices Now

12 tips of Christmas #12: Get rewarded for your spending

Put your purchases to even better use by earning rewards whenever you spend money.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

The lowdown

If you know you've got some big purchases to make over the coming year, it could be a good idea to look at a credit card that earns rewards that you can use for travel, shopping, gift cards, cashback or products.

Rewards credit cards can help you get more value from your purchases, but remember that these cards usually charge higher interest rates and annual fees. So these cards only make sense if you can pay your balance in full every month to avoid interest and earn enough points to outweigh the annual fee.

A rewards credit card is linked to a loyalty program, allowing you to earn reward points per $1 spent on the card. These points are then credited to your account. The rewards you can get with a credit card depend on the card you choose and the rewards program. Some of the most popular reward categories include flights, accommodation, upgrades, cashback, fuel vouchers and shopping discounts.

Here's how you do it

  1. Consider signing up for a bonus points credit card. These are usually frequent flyer earning credit cards which also come with an upfront amount of bonus points that you get for using your new card to spend over a certain amount in a given time frame (for example, in the first 3 months).
  2. Use points for holidays. If you were planning on going on holiday this year, make sure you use the card to book your flights. Not only will you get a load of points for the purchase, but you could score some free lounge access passes too.
  3. Sign up for supermarket rewards schemes and "double dip". Both Woolworths and Coles have free rewards programs you can sign up to. This means that you can earn points for your regular grocery shopping (plus they have partnerships with some department stores as well). You can transfer the rewards points you earn to airline frequent flyer programs (Qantas for Woolworths and Virgin Velocity for Coles Flybuys). When you go shopping for your groceries, pay for them with your frequent flyer credit card AND don't forget to scan your supermarket rewards card, so you can earn even more points.

Don't miss these tips:

Cancel as soon as the annual fee or interest charges outweigh the perks you're getting.

Make sure the rewards are something you'll actually use. Airport lounge access is great, but not if you don't travel.

Make sure you're not spending just for the sake of points. Purchases made on a rewards card should have been planned for in your budget already.

Check back each day in the lead-up to Christmas to get our latest expert personal finance tips.

More guides on Finder

  • Credit card churning in Australia

    Well-known among frequent flyers and point chasers, this controversial strategy involves taking advantage of bonus point offers on different credit cards.

  • How to make ATO credit card payments and earn points

    Find out which credit cards offer points for payments to the ATO and how much the rewards are really worth.

  • Guide to Latitude Infinity Rewards

    Reward your spending and redeem gift cards, merchandise and experiences with the Latitude Infinity Visa credit card.

  • Amplify Rewards Program

    Learn how you can build points with St.George and Amplify Rewards to redeem them for gift cards, wine, travel and more.

  • MYER one rewards program

    Get rewarded with shopping credits and a $20 Reward Card when you regularly spend at Myer stores and at any participating affiliate partners.

  • Coles Flybuys vs Everyday Rewards comparison

    Compare Coles Flybuys or Everyday Rewards to find out which one can offer you more rewards on your grocery shop.

  • Myer Credit Card

    The Myer Credit Card has a low annual fee, up to 55 days interest-free on purchases, flexible repayment options and awards MYER one Shopping Credits for everyday purchases.

  • Gift cards sold at Coles and Woolworths

    Gift cards can be thoughtful and practical presents for people. Read this guide on Woolworths and Coles gift cards to find out what you need to know when buying and using them.

  • How to earn reward points via PayPal

    Link your credit card to your PayPal account and you could earn points while shopping online with buyer protection.

  • Store Credit Cards

    Discover the benefits you can get in-store, online and anywhere you shop with a store credit card.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site