subject: Collecting Credit Card Rewards [print this page] Are you a member of a credit card rewards program?
Many thousands of Australians enjoy the benefits of merchandise, gift cards and flights just for using their credit card for money they would be spending anyway. If your card is affiliated to a credit card rewards program you can earn points and redeem them for great rewards.
The key to accumulating great rewards is to build up as many credit card rewards points as you can whilst keeping control of your spending. Our guide will help you work out when (and when not) to use your card to earn points.
How to generate credit card rewards
You wont accumulate any reward points on your credit card if you do not spend any money on it. Most banks award points based on the dollars you spend on the card; typically between one and two points per dollar spent.
The first step that you can take to start amassing credit card rewards is to use your credit card for regular day to day purchases such as groceries or fuel. You would be spending this money anyway, so why not benefit from accumulating rewards based on your spending?
Bonus points
To maximise your points, keep a look out for bonus point offers. For example, you may receive some extra points for activating your card, or you may benefit from double points for the first three months.
Similarly, many credit card companies offer additional points with bonus partners. If you regularly use these bonus partners already, then pay with your credit card for their goods or services to benefit from additional credit card rewards points.
Make sure you can always pay off your balance Whilst you may be using your rewards credit card for all your day to day spending, you should make sure that you can always pay off your card balance in full when your statement arrives.
If you cant pay your balance in full every month you will end up paying interest. This interest will almost certainly negate the benefit of any credit card rewards that you have earned.
When you wont get credit card rewards
There are two types of transaction that will not earn you any credit card rewards; cash withdrawals and balance transfers. Cash withdrawals You do not earn credit card rewards for using your card at an ATM to withdraw cash. And, indeed, this withdrawal will be charged at a higher rate of interest than other transactions and you will sometimes not benefit from any interest free days Balance transfers
You do not earn credit card rewards on the amount of a balance transfer. Reward credit cards are generally the wrong type of card to transfer a balance to, unless you intend to clear the balance in full before you start using the card for purchases. However, this means you will not receive any credit card rewards until you start using the card to buy goods and services again.
