Australian credit card types: Credit Card Rewards

Reward Program Credit Cards

Reward cards are a variety of credit cards that provide gifts and perks to reward cardholders for spending money with the credit card or rather as an incentive to spend money on the credit card. In Australia the variety of rewards programs and monthly emergence of new and exciting reward offers render consumers rather spoilt for choice. Reward cards may provide gift cards, hotel discounts, restaurant savings, cash back rewards, and frequent flyer links. Some cards not only reward you for spending but even reward you points for making repayments on your card, including repayment of your balance transfers. However these reward programs do come at a cost and in most cases the quality of the rewards program largely dictates the size of the annual fee. If rewards are an essential feature in your credit card then there are a few things you should research about when making the comparison including reward point expiration terms, the ease of the redemption process, value per point and annual fees.

Frequent Flyer Rewards Cards

Credit Cards with frequent flyer rewards link credit card spending to frequent flyer programs so that money spent on the credit card may be attributed as points towards the frequent flyer program. These credit cards allow you to redeem flights as well as other gifts and packages, an innovative solution for people who prefer frequent flyer rewards over standard credit card rewards.

Cashback Rewards cards

This is a special feature that allows you to use your points to redeem cash rather than gifts and discounts. Instead of being rewarded with gifts and privileges the cardholder will instead be given cash back for their spending on the credit card. The amount of cash back is usually calculated on a percentage basis of the money spent. Alternatively some cards use a points system to calculate how much the cash the cardholder is entitled to redeem. These cards are especially good for people who aren’t keen on picking out rewards from a list of things they don’t need.

Store Credit cards

Some stores now offer credit cards of their own to allow users a faster way to earn points and to reward store loyalty. These credit cards are often easier to apply for and provide the user with rewards for shopping at that store.

Supermarket Rewards Cards

Supermarket credit cards allow you to earn even more points in their stores and as well as associated stores. Since most people make frequent supermarket purchases these cards provide one of the fastest ways to earn points. However don’t lose sight of the value of these points and remember that each point has a different value depending on the reward program.

Published: 8 December 2010

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