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Best rewards credit cards Australia

Sean Callery Editor Money.com.au

Written By

Sean Callery

Shaun McGowan Money.com.au founder

Reviewed by

Shaun McGowan

Compare the best rewards cards in Australia for points earning and sign up bonuses. Plus, learn how to tell if a rewards card will be worth the annual fee.

Best rewards credit cards Australia

Sean Callery Editor Money.com.au

Written By

Sean Callery

Shaun McGowan Money.com.au founder

Reviewed by

Shaun McGowan

Compare the best rewards cards in Australia for points earning and sign up bonuses. Plus, learn how to tell if a rewards card will be worth the annual fee.

Sponsored: Citi Rewards Credit Card - Citi Bonus Points Offer

Points per $1

1

On everyday spend

Sign up bonus

100,000

Citi reward Points

Intro annual fee

$99

12 months

Then $199 p.a.

Purchase rate

22.49%

Per annum

Interest free

Up to 44

Days

Money’s take

Please note, this product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc. Get 100,000 bonus Citi reward Points when you spend $5,...

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Pros

  • Intro offer - 100,000 bonus Citi reward Points (that's $400 when you Pay with Points)
  • Annual fee reduced to $99 for first year
  • Earn reward points for eligible spend
  • Complimentary Mobile Phone Insurance when you pay your monthly mobile plan bill with your Citi Rewards Credit Card.
  • 10% off (up to $250) selected hotel offers with Luxury Escapes when booked by 1 March 2025
  • 5% discount on international flights with Trip.com
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Cons

  • High interest rate on purchases
  • High foreign exchange fees
  • Fee applies for additional cards
info

Additional information

      • Card Type: Mastercard
      Featured rewards card offers

      Sponsored

      SPECIAL OFFER

      AMEX PLATINUM

      150,000 Bonus Membership Rewards® Points

      American Express® Platinum Card

      When you apply online by 28 January 2025, are approved, and spend $5k on eligible purchases on your new card within the first 3 months. T&Cs apply. New Amex Card Members only.

      View card

      SPECIAL OFFER

      Amex Explorer Credit Card

      Receive 50,000 Bonus Membership Rewards Points

      American Express Explorer® Credit Card

      When you apply online, are approved, and spend $4k on eligible purchases on your new card within the first 3 months. T&Cs apply. New card members only.

      View card

      EXCLUSIVE OFFER

      Amex Essential Credit Card

      Receive 60,000 Bonus Membership Rewards® Points

      American Express Essential Rewards® Credit Card

      When you apply online through the link on this page by 3 December 2024, are approved and spend $3k on eligible purchases on your new Card within the first 3 months. T&Cs apply. New Amex Card Members only.

      View card

      Top rewards credit cards for earning points

      We have nothing to hide, so we don’t put credit cards behind a filter if they don’t pay us. See how it works.

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      Rates updated 02 December 2024

      How do rewards credit cards work?

      Rewards credit cards are a type of credit card that allows cardholders earn rewards points on eligible purchases made with the card. Points can then be redeemed through the card’s rewards program. Rewards can include cashback, gift cards, cosmetics and homewares, or even flights and accommodation.

      Rewards credit card points are usually matched to a certain spending value. A common example is 1 rewards point for every $1 spent. But some premium rewards cards offer higher earn rates.

      Likewise some business credit cards and corporate credit cards offer particularly high levels of rewards.

      Types of reward you can get

      Depending on the reward program you join, you may be able to choose from thousands of individual rewards. Some of the most common examples of rewards include:

      • Gift vouchers & credit card cashback Cosmetics
      • Home & kitchenware
      • Outdoor & sporting equipment
      • Electronics
      • Entertainment tickets for sports, events, or movies
      • Flights and accommodation
      • Rental cars
      • Charitable donations

      10 ways to maximise your rewards credit card points

      If you to get full value from a rewards credit, just picking any old card and waiting for the points to flow build up probably won't cut it . Here are some simple point pointers to consider.
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      1. Look for bonus points

      Take advantage of rewards credit cards with bonus sign up offers (assuming the credit card is overall a good match for your situation).

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      2. Check the earn rate

      Consider cards with higher point earn rates (again assuming the card overall is good value).

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      3. Check eligibility for rewards

      Make sure you understand which purchases are eligible to earn points and which aren’t.

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      4. Match the card to your spending habits

      Match the card to your spending habits. If you travel a lot, a frequent flyer credit card may mean you earn more points. There are also travel credit cards with extra perks related to overseas use.

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      5. Use your credit card for everyday purchases

      Ones you would be making anyway and you can comfortably afford to pay off.

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      6. Earn bonus points

      Some rewards programs allow you to earn points by hitting non-financial targets, like walking a certain number of steps per day.

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      7. Share the card with your partner

      Most credit cards allow additional cardholders (e.g. Amex credit cards allow up to four at no extra cost). If more than one person is using the card, you'll likely earn more rewards points (again watch for overspending).

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      8. Pool points with friends and family

      Some rewards programs allow point transfers between family and friends. This can help make it more likely you’ll get the most from your points.

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      9. 'Volunteer' to pick up the bill

      For split expenses with friends, family or roommates, offer to pay (and earn points) and have the others send you the money.

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      10. Redeem your points wisely

      Look for the rewards perks that will get you most bang for your points (but above all else, make sure you actually use them).

      Don't forget to think about fees and other costs. There's no point earning a tonne of points if you're also paying through the nose in fees and interest.

      Rewards credit card expert tip

      Bradford Kelly

      Brad Kelly, Credit Card Expert

      "There are plenty of options but not all of them are good. For my money, the best rewards program is American Express Membership rewards – e.g. you can to transfer points to a wide range of airline programs. But for any rewards program, unless you are a BIG spender they are often not worth it as the fees outweigh the benefits. The average Aussie spends about $2,500/month on their card. This won’t get you a toaster."

      Brad Kelly, Credit Card Expert

      How to choose a rewards credit card

      Rewards credit cards can offer a range of benefits, but choosing the wrong card could end up costing you more than you get back. The average monthly credit card spend in Australia is around $2,500 – will you be spending enough to get sufficient rewards back?

      Rewards credit cards are often available in various tiers, based on the amount you are likely to spend on the card each year. Finding the rewards card that suits you will depend entirely on how you plan to use the card.

      Below are some factors to consider when choosing a rewards credit card.

      Match it to your income and spending habits

      How much you earn each year will affect how much you are able to spend on your card, and the value of the rewards you may receive in comparison to the card’s fees. Different rewards cards have different minimum income requirements. You may need an annual income of up to $100,000 to qualify for some premium credit cards.

      But be wary of spending more than you otherwise would just to earn reward points.

      Watch out for fees

      Annual fees are particularly important when your'e choosing a rewards card. Because, they're usually pretty high – over $500 in some cases.

      If your rewards card's perks won't stack up when valued against the annual fee, the card will actually be costing you money overall. In this case, a no annual fee credit card is a possible alternative.

      Don't forget the other reward card fees that could apply depending how you use the card, like international credit card fees for payments made overseas. You may be able to find credit cards with no international fees that still offer rewards.

      Then there are miss payments fees and fees to do a credit card balance transfer.

      Find a low interest rate

      Rewards credit cards are not ideal if you carry a revolving balance on your card from month to month as interest rates are high (usually 20% plus).

      If you think it’s possible you won’t always pay off your balance in full, aim for the lowest interest rate possible. Or consider a low rate credit card.

      It's also possible to access rewards through some special offer interest-free credit cards, with a 0% rate for a limited time.

      Alternatively, a card with a high number of interest-free days will give you more leeway to pay off the purchases without incurring interest at those high reward card rates.

      Consider your points eligibility

      Some cards will offer more points for purchases made for specific items, while some bills or purchases may not be eligible for points at all on certain cards.

      It's important that the card you choose is compatible with the your existing spending.

      In other words, will the types of purchases you make already actually earn you points, or will you end up needing to change things up to earn more points?

      Don't forget the point caps. Some cards include a cap for earning points on purchases (e.g. 100,000 per year). Or the earn rate might taper off as you spend more (e.g.1 point for every dollar spent up to $10,00 and 0.5 points for every dollar above that).

      Choose the right rewards program for your needs & lifestyle

      Ideally the points you earn will be redeemable for products and other purposes you will actually value. The last thing you want is bucket loads of points you won’t use (don’t forget, some reward points expire).

      Check what offers and brands the card's rewards program has in its rewards store to see if you're likely to use it.

      Who can qualify for a rewards credit card?

      Before you apply for a rewards credit card, make sure you meet the qualifying criteria. This is usually:

      • Be over 18 years of age
      • An Australian citizen or permanent resident
      • Have an annual income above the lender's cut off

      Qualifying criteria will vary between lenders and cards, so it’s important to compare credit cards before applying to ensure you are eligible. Doing a free credit score check in advance can also help.

      How to apply for a rewards credit card

      You can apply for a rewards credit card online, over the phone, or at your bank. When applying, you will need to provide supporting documentation so the card issuer can accurately assess both your application and your ability to meet repayments. This will likely include:

      1

      Personal details (name, date of birth, address etc.)

      2

      Valid identification - such as a driver licence or passport

      3

      Details of your assets – such as your home and a car if you own one

      4

      Details of your current expenses and other loans you may have.

      5

      Employment details - including your employment status, employer contact details, salary information, and payslips to verify your income. If you're self-employed, you will need to provide alternative documents, such as previous tax assessments, instead of payslips.

      Is a rewards credit card worth it?

      If you use the card responsibly, rewards credit cards can be a handy way to access perks (e.g. some credit cards come with travel insurance included) and earn points on eligible purchases made with the card. This has become a fundamental part of how credit cards work.

      These points can be redeemed for flights, upgrades, gifts, or other rewards, and each card will differ in both how points can be earned, and how they can be spent.

      At their best rewards cards mean the cardholder gets more value in perks than they pay in fees. In other words, you earn rewards for spending you would be doing anyway.

      But for some people, the high annual fee typically charged on rewards credit cards cancels out all of the value of the benefits. In other words, some people pay more than they get back in rewards. There can be a temptation to spend more to boost the rewards.

      The key is assessing rewards credit cards based on how you spend currently, and maximising your points earning without spending more than you otherwise would.

      One way to determine whether a rewards card may be suitable for you is to:

      • Calculate how much you spend each year
      • Calculate how many points you will earn
      • Calculate the associated value of these points
      • Compare the value of your points with the fees included with the card

      To calculate the associated value of your points, simply divide the number of points required to redeem a reward by its recommended retail price (RRP). The result will be the number of points needed to claim $1 of a specific reward amount.

      Your questions answered

      Rewards credit cards have a minimum credit amount of $500, and a maximum credit limit of $100,000 (if you get a charge card, there is theoretically no limit).

      But reward credit card limits are personalised to you. The amount of credit that you can access from a lender is determined by your:

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      • Income
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      • Credit score
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      • Overall financial health

      The credit limit on your credit card (not the balance) is a factor lenders will use when assessing future applications for home loans and personal loans, so try and avoid a very high credit limit if you don't need one.

      You may not earn credit card rewards points on every purchase or transaction. The rules will vary by card provider, but some common examples of when you won't earn points include:

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      • Spending with the government (e.g. paying a tax bill)
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      • Cash advances (withdrawing cash)
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      • Buying foreign currency
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      • Paying card fees or interest
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      • Gambling and gaming

      You use a rewards credit card the same way you would with a normal credit card. Remember to verify your eligibility for earning points on your purchases before using your card, and always repay your balance in full to avoid interest charges. Alternatively there are charge cards offering rewards that do not come with interest charges, but the balance must be cleared in full each month.

      Although it’s not common, some rewards credit cards may include a balance transfer offer.

      Keep in mind that a balance transfer does not wipe out your existing debt, it simply transfers it. You will still need to repay your balance transfer amount, and ensure the interest-free period is sufficient for you to make repayments without incurring interest charges. After the balance transfer period the card's standard interest rate will apply, which will likely be high on a rewards card.

      Consider whether that's a suitable option if you are intending to transfer a balance from another credit card.

      Rewards credit cards often include higher annual fees than other cards. This is relative to the number of features and benefits they offer. In simple terms the annual fee is the cost of the rewards and features. For example, for a credit card with free airport lounge passes, there is a cost to the credit card company for offering this.

      Certain cards are designed to reward high-income, high-spending customers - and you should always compare cards to ensure you are choosing a card that will work for you.

      The rewards program you join will largely depend on the card issuer you choose to apply with. Banks will often have a range of rewards program options, including their own program and partner programs most commonly those run by Australia's major airlines:

      Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

      Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.

      Important information

      General information only

      The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of the credit card product is suitable for you and seek independent financial advice if necessary.

      We are not providing you with a recommendation or suggestion about a particular credit product. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to hold a particular credit card.

      What products, features and information are shown

      While we make every effort to ensure all credit cards available in Australia are shown in our comparison tables, we cannot guarantee that all products are included. Where we become aware of a card that is missing from our tables, we commit to adding it within one business day.

      Our product comparisons may not compare all card features and attributes relevant to you.

      Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the card issuer. While we do our best to ensure the information provided on this website is accurate, all information on this website is provided without any representation or warranty, either express or implied, being given as to the accuracy, completeness, timeliness, reliability or otherwise of its content. No responsibility is accepted by us for any errors, omissions or any inaccurate information on this website.

      How cards are sorted and filtered by default

      Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially or select a particular card type via the ‘card features’, a default sort order is applied as follows:

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      • Default sort (main credit card page): Consumer credit cards sorted by lowest ongoing annual fee, then the highest number of reward points earned per $1 spent, then alphabetically by provider/product name.
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      • No annual fee cards: Consumer credit cards sorted by lowest ongoing annual fee, then the highest number of reward points earned per $1 spent, then alphabetically by provider/product name.
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      • Low rate cards: Consumer credit cards sorted by lowest purchase rate, then lowest ongoing annual card fee, then alphabetically by provider/product name.
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      • Balance transfer cards: Consumer credit cards sorted by lowest balance transfer rate, then longest duration of BT offer, then lowest ongoing annual card fee, then alphabetically by provider/product name.
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      • Rewards and frequent flyer cards: Consumer credit cards sorted by highest rewards/FF points per dollar earned on everyday purchases, then lowest ongoing annual card fee, then lowest purchase rate, then alphabetically by provider/product name.
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      • Cashback cards: Consumer credit cards sorted by highest cashback per dollar earned, then lowest ongoing annual card fee, then lowest purchase rate, then alphabetically by provider/product name Interest-free cards/offers: Consumer credit cards sorted by longest 0% purchase rate offer period, then lowest ongoing purchase rate, then lowest ongoing annual card fee, then alphabetically by provider/product name
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      • Credit cards with lounge access: Consumer credit cards sorted by highest number of free lounge passes, then lowest to highest ongoing annual card fee, then highest to lowest points per dollar earned on everyday spending, then lowest purchase rate, then alphabetically by provider/product name.
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      • No international fee cards/cards with travel insurance: Consumer credit cards sorted by lowest ongoing annual card fee, then highest points per dollar earned on everyday spending, the lowest purchase rate, then alphabetically by provider/product name.
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      • Business/corporate credit cards: Business cards sorted by highest points per dollar earned on everyday spending, then lowest ongoing annual card fee, then lowest ongoing purchase rate, then alphabetically by provider/product name.

      We may earn a commission from product providers if you are issued with a credit card via a link from this page. Cards marked as ‘sponsored’ are not selected or positioned on the page based on their product attributes. However, in our comparison tables, products are displayed based on the relevant default sort order and filters applied for that card type, or the sort order and filters selected by a user. We do not sort or filter comparison tables based on whether or not we will make money from a particular card, but we may earn a commission if you are issued with a card via a link from our organic comparison tables.

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