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!
Rewards credit cards are the easiest way to get bank rewards, frequent flyer points or cashback as you spend. If you choose a rewards card that best fits with how you spend money – and use it wisely – it can give you a way to get "something for nothing" on purchases you were going to make anyway.
When you get a new rewards credit card, you can usually take advantage of sign-up offers for bonus points when you spend a certain amount. These can give you a huge head start on building your rewards balance. Don't forget to check that when comparing cards.
A rewards credit card 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.
Credit card rewards in Australia range from flights and hotel bookings to gift cards, cashback and retail items. While these rewards vary between cards, any of them can help you get more value from your spending.
But rewards credit cards typically charge higher interest rates and annual fees than other types of cards. So you'll get more bang for your buck if you pay your balance in full each statement period (to avoid interest) and if you can earn enough points to outweigh the annual fee.
There are 4 main rewards categories: frequent flyer points, bank rewards points, cashback and retail rewards and supermarket cards. You'll find more details on each of these options below.
If you're a member of a frequent flyer program, you can use a credit card to earn more points or miles for your existing frequent flyer account. There are 2 ways you can earn frequent flyer points with a rewards credit card in Australia:
As well as partnerships with frequent flyer programs, many credit card reward programs let you use points for flights, travel upgrades, accommodation, car hire and travel experiences without needing to transfer them first. This can be handy if you want the option of travel rewards but don't want to limit yourself to earning points through just one frequent flyer program.
Many credit card companies in Australia have their own rewards programs that give you a mix of ways to use points, with rewards such as travel, retail items, gift cards, credit on your account or point transfers to frequent flyer and other loyalty programs. The credit card rewards programs you can choose from include the following:
Some rewards credit cards give you a way to use points instantly when you're shopping with a partnered retailer. For example, if you have a CommBank Awards credit card, you can redeem your points in-store at Myer or Flight Centre. Or, if you have an American Express Membership Rewards card, you can shop with points at Ticketmaster and David Jones (including online).
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 come with introductory offers that provide a one-time account credit or voucher when you meet the spend requirements.
These rewards credit cards offer you points, discounts and other perks when you shop with a particular supermarket or major retailer, such as Coles, Woolworths, Kogan or David Jones. But you can still use them for spending at other shops and businesses (just like any other credit card). The following table gives you some examples of how these cards work.
| Retailer | Credit cards | Rewards |
|---|---|---|
 | David Jones American Express & David Jones American Express Platinum Card | Earn American Express Membership Rewards or Qantas Points for purchases at David Jones and everywhere else. You can also enjoy exclusive shopping benefits at David Jones, such as complimentary delivery and interest-free plans for eligible purchases. The platinum card also offers complimentary travel insurance and airport lounge access. |
 | Coles No Annual Fee, Coles Rewards Mastercard & Coles Low Rate Mastercard | The Coles No Annual Fee and Rewards Mastercard both earn Flybuys points at Coles Supermarkets and everywhere else. The Coles Low Rate Mastercard offers points per $1 spent at Coles Supermarkets (on top of your regular Flybuys points). These credit cards also include your Flybuys membership barcode on the back, so you won't have to pull out your Flybuys card when you're shopping at Coles or another Flybuys partner. |
 | Woolworths Everyday Platinum | Earn points on your credit card spending, which are then converted to Woolworths Shopping Cards every 4 months. Other benefits include 10% off your shop at Woolworths once per month and details for your Everyday Rewards membership on the back of the card. |
 | Kogan Money Black Card | Earns Kogan rewards points per $1 spent, which you can use to pay for Kogan.com purchases or for payments to your card. Another benefit is complimentary Kogan First Membership (usually $49), which gives you access to membership deals, free delivery on selected purchases and other perks. |
If you regularly pay for your groceries on plastic or shop with a particular store or brand, you can learn more about credit cards linked with shopping loyalty programs in Finder's guide to retail rewards credit cards.
With so many rewards credit cards to choose from, it's wise to think about how you would use one, what rewards you'd get the most value from and your overall financial situation. Then you can weigh up the other benefits, costs and features to help you find the right rewards card for you.
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:
The American Express Platinum Edge sports an annual fee of $195. To make this card worth it, you'd have to take advantage of enough of the card's perks and features to outweigh this $195 fee in value. Here are a few ways to get that value.
| Perk | Value | Notes |
|---|---|---|
| Annual Travel Credit | $200 | Must book through Amex Travel |
| Total | $200 | Total value of perks excluding rewards and insurance |
| 3 Membership Rewards / $1 | - | At major supermarkets and petrol stations |
| 2 Membership Rewards / $1 | - | In foreign currency, overseas and online |
| 1 Membership Reward / $1 | - | On all other eligible purchases |
| 40,000 Membership Rewards points | $200 | Based on the average spend of $1,872/month at an average 2 pts/ $1. Valued using Coles gift card reward. |
| Total | $400 | Total approximate value of perks & points |
Based on the average Australian credit card spend, you can get an additional $200 worth of value out of the Membership Rewards points earned. However, you should calculate your own rewards potential based on how much you usually spend each month.
For this example, we've also outlined the maximum claim amount of all the insurance covers and you should factor in any potential value based on your personal circumstances.
Rewards credit cards often come with a variety of additional features that can add value to the account you choose. Popular perks include the following:
Rewards programs give you a way to get extra value from paying with a credit card – but you need to look at the costs as well as the perks to decide if a rewards credit card is worth it. So, if you're interested in earning points, cashback or other rewards as you spend using a rewards card, you can start by comparing a range of credit cards based on the rewards program, sign-up bonus point offers, costs and your spending habits. You can then read reviews of individual cards, check your eligibility and apply for a card that fits your needs.
Generally, most of your everyday purchases will earn points, including spending at retail stores, supermarkets, cafes and petrol stations. Transactions that usually don't earn points are balance transfers, government charges (including ATO payments), BPAY transactions, cash advances, account fees and account charges.
But each rewards program and credit card company has a different definition of which transactions earn points. So check the rewards program's terms and conditions for a full list of eligible and ineligible transactions so you know when you will earn rewards.
It does vary between issuers but, in the case of BPAY payments specifically, some credit card providers explicitly list these transactions as ineligible for rewards. This includes CommBank, Westpac, St.George and Virgin Money.
There are also other providers that don't list BPAY transactions as ineligible for points on personal reward or frequent flyer cards, such as American Express, ANZ and NAB. But that doesn't always mean you will earn points (or that you'll be able to use a credit card for a BPAY payment).
If you make a lot of BPAY payments – or are wondering about other payments that won't earn points – check the card's terms and conditions for the complete list of transactions that do not earn points. Or, ask the provider.
The steps you need to take to redeem your points will vary between credit cards and reward programs, but you can usually expect to have to do the following:
To apply for a rewards credit card, you need to meet the bank or lender's eligibility criteria. The most common criteria include the following:
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 and documents you provide to determine whether you'll be approved for the account.
If you get a credit card with a bonus points offer, you usually need to spend a certain amount in the first few months or over another period of time. With that in mind, below are some examples of different ways to meet the minimum spend requirements.
It's important to only spend what you can afford to pay off so that you don't end up with interest charges that take value away from the points.
Most bonus points are usually added to your account within 1-12 weeks of when you meet the spend requirement, but it does vary between offers.
For example, a card may say to "allow up to 12 weeks" from when you meet the spend requirement. But there is a possibility the points will be credited to your account at an earlier date that's "within 12 weeks" of meeting the offer requirements.
You can check the fine print or call the credit card company to find out when points will be added to your account.
You can log into your account and track what transactions have earned points or call your credit card company (St.George in this case) to see if you've met the spend requirement.
Bonus points are only really worth it if you can get more value from them than what you're paying for the credit card. When you're comparing rewards credit cards with bonus point offers, ask the following questions to decide if it's worth it:
Depending on the card and rewards program, the points could be transferred to another person, converted into a statement credit or cancelled.
For example, with Westpac Altitude Rewards, the points will be converted to a credit on the account if the bank is notified of the primary cardholder's death within 6 months. Otherwise, the points will be cancelled.
As another example, Qantas Frequent Flyer cancels a member's account and any points that haven't been transferred or redeemed before they have died. And Velocity Frequent Flyer gives executors or administrators of the estate the option of asking for points to be transferred or redeemed.
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.
If you have a credit card that's partnered with an existing loyalty program, the credit card provider and rewards program will work out a transition plan when the partnership ends (or if the card is taken off the market). The steps vary but could include the following:
As an end in partnerships is a major change, you could also take it as an opportunity to shop around and see if you can find a new rewards credit card with features that you want.
RAQ Apparel founder Sophia Argyropoulos chats the inspo for Abbie Chatfield swimwear collab and the secret to finding the perfect bikini.
With a 100,000 bonus Membership Rewards offer and complimentary Qantas Business Rewards membership, is this the right card for your business?
Liverpool and Arsenal battle for a place in the League Cup final.
Rapid antigen tests are proving extremely hard to find, but there are options if you can be patient trying to find a RAT.
You can easily elevate your binge-watching game in the New Year.
He believes in peace at any cost – no matter how many people he has to kill to get it.
Both Melbourne teams are fighting for their seasons as we embark on derby number 2
From clean beauty to bedazzled everything, these are the makeup looks will take over 2022 and the products you need to pull them off.
Not all tests are created equal here are the different brands compared.
