Rewards Cards – What is the Best Rewards Credit Card for You?
When it comes to rewards cards, there’s a dizzying array of offers to choose from. From sign-on bonuses and cash back to frequent flyer points and other perks, even the savviest of customers may find it hard to choose between them.
To help you narrow down your options, here’s a closer look at the different types of rewards cards, as well as some tips on how to choose the right rewards card for you.
But wait, what is a Rewards Card?
A rewards credit card is a credit card linked to a rewards or loyalty program that lets you accumulate points in exchange for a range of rewards and bonuses.
The great thing about a rewards card is you don’t need to do anything special to earn points. You will automatically rack up points simply by using your card for everyday purchases – including groceries, clothing and bills. That way, you can get more from the money you’d be spending anyway.
When you’ve earned a certain number of points, you can exchange them for valuable rewards available through the rewards program linked to your credit card, such as cashback on your credit card account, or shopping vouchers at your favourite stores.
Keep in mind that you won’t earn points for taking out a cash advance, and that certain types of purchases and transactions, such as repayments, may also be excluded. Read the terms and conditions carefully for details about your card’s earn rates and when points expire, as these will vary according to the rewards program.
Types of Rewards
Here’s an overview of the main types of rewards that are commonly available. Whether a particular rewards card offers any one or more of these rewards will depend on the rewards program linked to it.
• Cashback. A very popular rewards program choice, this offer gives you cashback on your credit card account once you reach a minimum number of points or satisfy the spend criteria, helping you to pay back your balance.
• Instant rewards. Get automatic discounts for using your credit card at participating merchants – for example, $10 off at the supermarket when you reach a certain number of points. You might also receive one-off discounts and bonuses in exchange for opening the credit card.
• Shopping rewards. Depending on your tastes, your rewards card might also allow you to redeem points in exchange for vouchers, gift cards, merchandise, concert tickets and fine dining.
• Travel rewards. Redeem rewards points for airline tickets, hotel stays or exclusive member upgrades. Travel points can either be transferrable or non-transferrable.
• Travel insurance. While not exclusive to rewards cards you can also get benefits such as travel insurance. This is an extra bonus bundled into many cards. It might not be a reward per se, but with benefits such as 24-hour customer assistance, cancellation cover, theft protection and more, free travel insurance is nothing to sneeze at.
Looking for a reward card that ticks all the boxes? Compare credit cards now to find the right one for you.