Credit cards with uncapped rewards points
Get unlimited points earning potential with a rewards credit card that offers uncapped earning.
Some rewards credit cards will limit how many points you can earn each statement period or each year. So if you use your credit card a lot and reach the points cap, you could miss out on earning rewards for all your purchases. But an uncapped rewards card gives you a way to collect points on all eligible purchases, no matter how much you use the card.
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How do credit cards with uncapped points earning work?
These credit cards are designed for big spenders and points chasers, allowing you to earn points per $1 spent on eligible purchases without limiting the total number of points you can collect in a statement period or year. Business owners can also benefit from an uncapped rewards card, as day-to-day expenses could quickly add up and lead to a high point balance on a card that offers no cap.
As an example, let's say you typically spend $6,000 a month ($72,000 per year) on your credit card. On a rewards card that offers 1 point per $1 spent, you could expect to earn 72,000 points per year from this spending. But if your credit card had a monthly points cap of 5,000, you would only collect 60,000 points for this spending.
Points caps and bonus point offers
Most points caps only apply to everyday spending. So if you get a card with an introductory bonus point offer, collecting those points won't typically contribute to the points cap.
Does a points cap really make a difference?
If you make lots of purchases with your credit card and want to take full advantage of the rewards program, not having to worry about reaching a cap can make a difference. But if you are unlikely to reach the points limit with your normal spending habits, a points cap won't be an issue. As a rule, you should never make purchases on credit for the sole purpose of reaching a points or promotional goal. A rewards program should award you for your typical spending, not encourage you to make purchases you normally wouldn't.
How to compare credit cards with uncapped rewards points
While the potential to earn unlimited rewards may be a big motivation for choosing a new credit card, it's important to also look at the other features on offer. This includes:
- Sign-up bonus points. This can really kick-start your rewards points balance. Most bonus point offers include a spending requirement, so you'll usually have to spend a set amount in the first few months (or over the first 12 months) to be eligible to collect the bonus points.
- Earn rate. The amount of points you earn per $1 spent has a big impact on your overall rewards balance and the value of the card you choose. It can even affect the likelihood of meeting a points cap. For example, if a card had a monthly cap of 6,000 points and earned 0.5 points per $1 spent, you would be able to spend up to $12,000 before you reached that limit.
- Annual fee. The majority of uncapped rewards card charge an annual fee. You need to weigh this cost against the potential value you'll get from rewards and other features to decide if a card will be worth it for you.
- Interest rates. Any purchases you make with a credit card have the potential to attract interest charges. You could avoid this cost by taking advantage of interest-free days, but this feature is typically only available when you pay your balance in full by the due date on each statement. Plus, some cards don't offer interest-free days.
- Reward options. The value of rewards points depends on how they are redeemed. This makes it important to look at the different rewards available through a credit card, as well as how many points you need for a redemption.
- Other features. Besides the rewards program, look at the other features you may be getting with the credit card. Complimentary travel insurance, airport lounge access, flight or travel credit and additional cardholders are some of the perks that could add value to a card if you know you'll use them.
What are the pros and cons of credit cards with uncapped points?
- Unlimited points potential. If you use your credit card for all or most of your spending, an uncapped card won't limit the amount of points you can earn.
- Bonus points. Many rewards cards offer introductory bonus points that can boost your rewards balance so you can make redemptions faster.
- Flexibility. You can spend as much or as little as you choose without worrying about your points being capped.
- Overspending. You may find that you are spending more on your credit card just to earn points for rewards.
- Fees. Many of these cards come with high annual fees.
- Interest charges. If you're spending a lot on an uncapped rewards card and don't pay off the full amount each month, the interest charges will quickly add up.
If a points cap is higher than what you usually spend on a credit card, you may not need to worry about it. So, check your typical spending before you start comparing cards, so you can decide if a capped or uncapped rewards card makes more sense for you.
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* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.