The top rewards credit cards on the market right now!
With so much choice out there when it comes to rewards credit cards — we’ve rounded up some great cards on offer
There are many of us who love collecting rewards points through our credit cards, but when it comes to looking for the top rewards credit cards on the market, it can be difficult to know what’s the right deal to take up.
If you’re looking to earn points through the Qantas Frequent Flyer or Virgin’s Velocity points programs there are a number of different options for you, but there are plenty of cards that offer more!
TODAY chatted to Consumer Campaigner Chris Zinn to get the roundup of the best rewards credit cards out there right now.
TODAY: A lot of us have them, so what should we be looking for in a rewards credit card?
ZINN: Can you spend enough on them — say $2,000 per month and up — to make them worthwhile given the annual fee which can amount to hundreds of dollars. Weigh up the real value of all those bonus points, as they only happen once and the annual fee can be much more in the second year. Also it’s not just how fast you can earn the points. You also need to make sure you can redeem them!
TODAY: If you’re a Qantas frequent flyer customer, which card suits you?
ZINN: Finder.com.au recommends American Express Westpac Altitude Black – Qantas Bundle*. It costs $499 p.a and with the bonus of 120,000 points you could buy a business class seat from Sydney to Paris. But, you have to spend significant amounts on the cards in the first 90 days to qualify. There’s also — like most reward cards — a hefty 20% interest rate.
TODAY: What about if you’re looking to earn velocity points?
ZINN: Again Finder.com.au says the Virgin Australia Velocity Flyer card* is good. It costs $64 for year one but rises to $129 afterwards. There are 66,000 bonus points and an earn rate of 0.66-0.5 points per $1 spent. Do check the details as there are always terms and conditions. As with other cards, there are also additions that can seduce you, such as free travel insurance, lounge entries and some gift vouchers.
TODAY: Is there a card that offers more than just frequent flyer points?
ZINN: The top level cards offer a concierge service and other perks, but you do pay for them. Finder suggests the Citi Rewards Platinum credit card* – the annual fee is $49 in year one and then $149 p.a after that. You’ll receive 100,000 points when you spend $3,000 in 90 days from card approval. The interest rate is 20.9%.
TODAY: And with any credit card there is always risk, what is your advice?
ZINN: If you have to pay interest for even month because you can’t afford to clear the entire amount outstanding, do not bother. You will not come out ahead and will be subsidising those who can work the system. The value of points has almost halved in the past five years, hence all the bonus offers and promotions. Assess the real value and don’t be too misled by the special offers. And beware of those high annual fees, as they can really erode any value you can derive from points.