How one reader quadrupled her Qantas Points without spending more
Key takeaways
- One reader increased her potential Qantas Points from 40,000 to 180,000 a year by switching to a card better suited to her spending.
- Many Australians don't realise their credit card has points earning caps and reduced earn rates that limit their rewards.
- With many card providers changing fees and rewards ahead of 1 October, now is a good time to check whether your credit card still delivers value.
"My credit card is ripping me off," a reader complained.
She'd reached out for help because she was confused. Despite spending around $15,000 every month on her card, she was only getting around 3,000 Qantas Points.
I had a peek at the terms and conditions for her card and quickly found the issue. It earned 0.66 points per dollar spent, capped at $5,000 in eligible spending each month.
She was maxing out at around 40,000 Qantas Points a year, when she could have been earning closer to 180,000.
It's a mistake I see all the time...
Most people will get a credit card from their bank, or they might even compare cards before they apply.
Then they stick with the card for years, while the market changes around them.
Right now is a particularly good time to check.
Ahead of the Reserve Bank's interchange fee cap coming into effect on 1 October, many credit card providers are announcing changes to their products.
Some are increasing annual fees; others are reducing points earn rates or introducing new earning caps.
What do these changes mean for you?
In a nutshell, it means the card that was right for you two years ago may no longer be the best fit.
If you're collecting rewards or Qantas Points, it's worth checking 3 things:
- The earn rate: how many points you receive per dollar spent.
- The earn cap: whether your card has monthly or annual earning caps.
- Any recent changes to fees or rewards that could affect the value you're getting.
In this reader's case, simply moving to a card with a higher earn rate and a more generous cap would increase her annual points haul by more than four times, without spending an extra dollar.
With 180k points she could fly economy from Sydney to Los Angeles and back twice; or cover a return trip to Europe; or jet between Sydney and Brisbane in a business class seat 9 times. Use our Qantas Points calculator to see where your points could take you.
With so many issuers updating their rewards programs, now is one of the best times in years to check whether your card is still earning its keep.
Check out some of the best credit card rewards offers on the market right now
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