For many people, getting a credit card can be kind of daunting. The sheer number of options out there can be confusing, and all of them have different perks and rewards. Contrary to popular belief, not all credit cards are the same and it’s in your best interest to do your homework and research all your options before choosing one.
Credit cards can be more than just a convenient way to pay for everyday expenses. With the right card, you can also earn significant rewards. These can range from cash back, airline points, or hotel stays to discounts at favourite retailers. If you're in Australia and looking for the best credit card rewards, here's a guide to help you navigate the myriad options.
Understanding Credit Card Rewards
Credit card rewards are incentives provided by credit card issuers to encourage card usage and customer loyalty. Every time you make a purchase with a rewards credit card, you earn points, miles, or cash back, which can be redeemed for various benefits. Some cards offer flat-rate rewards, while others offer bonus rewards in specific spending categories.
Factors to Consider
When choosing a rewards credit card, consider your spending habits, the types of rewards you value most, the card's annual fee, and the rewards program's terms and conditions. Remember that the 'best' card for one person might not be the best for another.
American Express Explorer Credit Card
The American Express Explorer Credit Card is one of the most rewarding in Australia, particularly for frequent travellers. This card offers 2 points per $1 on most purchases, and points can be transferred to several major airline programs. It also comes with travel insurance and two complimentary lounge passes each year. Despite an annual fee of $395, the $400 travel credit provided annually makes this a worthy option.
Coles Rewards Mastercard
The Coles Rewards Mastercard is a fantastic option for those who frequent Coles supermarkets. You'll earn 2 Flybuys points per $1 spent anywhere, equivalent to a 1% return. Flybuys points can be redeemed for discounts at Coles, converted to Velocity Points, or exchanged for various items and experiences. With an annual fee of $99, it's best suited for regular shoppers at Coles.
ANZ Frequent Flyer Black
The ANZ Frequent Flyer Black card offers a lucrative rewards program for Qantas lovers. You can earn 1 Qantas Point per $1 spent on eligible purchases up to $7,500 per statement period, then 0.5 points per $1 spent thereafter. The card also provides complimentary Qantas lounge access and travel insurance. The annual fee is $425, but frequent Qantas flyers will find the benefits outweigh the costs.
HSBC Platinum Credit Card
For those seeking a balance between rewards and lower costs, the HSBC Platinum Credit Card is an excellent choice. Offering 1 point per $1 spent on eligible purchases and a $129 annual fee, it's a more affordable option. The card comes with additional benefits like travel insurance and two complimentary airport lounge passes each year.
Westpac Altitude Black
The Westpac Altitude Black is another top-tier card, offering 1.25 points per $1 on eligible purchases, and 6 points per $1 on spend with major airlines and hotel partners. The annual fee is $250, but the card's benefits, including complimentary travel insurance and airport lounge passes, help to offset this cost.
Australia's rewards credit card market is highly competitive, offering great opportunities to earn rewards based on your spending habits. Whether you're after travel benefits, cash back, or retail discounts, there's a credit card with rewarding features just for you.
However, remember that the most crucial rule of using any credit card is to pay off your balance in full each month. Only then can you truly reap the benefits of a rewards credit card. Consider your lifestyle, understand the card terms, and choose a card that offers you the most beneficial rewards.