One of the questions to ask when comparing credit card rewards is whether the rewards points are capped, so that you can only earn a certain amount of points per statement or per year.
Are credit card rewards points capped?
The vast majority of credit cards have a cap on the number of points that you can earn in a month or in a year. Rewards programs don’t usually cap the number of points you can earn – it is the cards themselves that place a limit on points earning.
Some cards have caps that won’t really affect the average person, such as no points earned past $100,000 spent per month. But some cards have caps that are actively designed to stop you from getting any serious value out of your card, such as no points earned past $2,000 spent per month.
Points capping can generally be overcome by paying a higher annual fee for a credit card with a higher earn rate and no cap. For example, Commonwealth Bank offers Standard, Gold, Platinum, and Diamond credit cards – and the Diamond card is the only CommBank credit card that does not have a points cap. So it’s definitely worth shopping around before choosing a rewards credit card.
If you have a good idea of how much you’ll spend using your credit card over a certain period, it will be easy for you to figure out which caps will restrict you and which ones won’t. This in turn will make it easier to decide whether a certain rewards card is for you or not.
You can compare rewards credit cards on the CANSTAR website:
Learn more about Credit Cards
- Do credit card rewards points expire? If so, after how long?
- How difficult is it to redeem credit card rewards points?
- How do I convert Woolworths Rewards points into Qantas points?