5 ways to earn credit card points quickly

Credit card points can be used for a whole variety of purposes, from earning frequent flyer miles through to discounts on your purchases and even cash back, depending on the kind of rewards card you have. Spending your points can be satisfying, but like most things in life, you need to earn them first. So what are some quick ways to earn credit card reward points while managing your credit card responsibly?

1. Look for signup offers and deals

If you’re shopping around for a new credit card, it’s worth keeping in mind that some rewards cards will offer bonus points on signup – depending on the offer, the number of reward points could be quite significant. The catch is likely to be that you’ll need to spend up to a certain amount within the first months of signing up to actually claim the reward points. If the required spend is within your budget, and you are confident you can pay off the balance of your card on time to avoid interest, then a signup bonus could be a way to kickstart your reward points haul.

On the flipside, though, it is wise to only take out a credit card if you are sure you can repay the balance in full each statement period in order to avoid interest charges, so if you make a big upfront spend and leave the balance sitting on your card for several months, the interest charges could start to outweigh the potential rewards.

2. Earn points by paying bills

Bills tend to be unavoidable in life, whether you’re paying for your utilities, phone, internet, or even your streaming services. Since you’re going to need to pay them no matter what, paying some bills on your credit card could be a way to earn reward points, as opposed to paying them with a debit card. Before you pay your bills with a credit card, though, it is important to check on a few things – number one, if you have the right kind of rewards card that will earn you points if you do so, and number two, if there is any surcharge for paying by credit card. If the latter applies, then the cost of the surcharge may not be worth the points you earn.

It is also important to keep in mind that if you spend on a credit card, you will need to pay the balance off in full each month to avoid being charged interest, as interest may once again erode any benefit you could get from earning points.

3. Look for cards with a high rewards points-per-dollar ratio

Not all rewards cards are created equal – in fact, some will earn you more points than others for each dollar you spend. A survey of the rewards credit cards currently on Canstar’s database shows a range of rewards points on offer per dollar spent, ranging from 2.5 points per dollar at the higher end to 0.50 or even lower in some cases.

Choosing a card with a high points-per-dollar ratio could mean you earn points for spending more quickly, however, it is important to keep in mind that some cards have capped points and spending limits, and others may come with high annual fees, that could cancel out the benefits of the points you earn.

4. Look for retail partners that suit your needs

Many rewards cards have partnerships with retailers, that could allow you to earn bonus points by shopping there. If you tend to do your regular grocery shop at Woolies or Coles, say, then you might consider a credit card that awards bonus points for spending there. Likewise, you might find a credit card that has a bonus points deal with Myer, David Jones or a particular service station where you get your petrol. And if you already have a rewards program card for your grocery store or servo (such as Woolworths’ Everyday Rewards), you are effectively earning double rewards with one purchase if you scan your rewards scheme card and pay with your rewards credit card.

If you have a credit card that can earn you reward points for the daily shop that you do already, then you may not need to change your spending patterns to reap the benefit of rewards points. As ever, though, keep in mind that when you spend on a credit card, you will need to be mindful of such things as interest payments and annual fees, and make sure you are managing the card responsibly.

5. Consider a joint credit card with your partner

If you and your partner both use a credit card, then it may be worthwhile to consider sharing the one card instead of having two separate ones. There can be a number of benefits to this – you will only need to pay one annual fee instead of two, and if you are both spending on the one card, you could theoretically earn more rewards points in the one place, provided that you do not hit the card’s points earn limit (if applicable). If you and your partner are comfortable sharing a card on which you will both make purchases – and you’re comfortable you can pay the balance off each statement period – then this could be a way to earn points faster, especially if, for example, you currently have a card that earns rewards and your partner does not.

How do you earn points on a credit card?

Credit card reward points are earned by spending money on a credit card that has an associated rewards program. The amount of points you earn can vary, depending on the provider and the retailer, and it may be the case that you earn more points by making purchases with partner retailers. Some kinds of rewards cards – for example, frequent flyer cards – will also award you bonus points for spending with partner airlines. The earn rate for points can also be dictated by your card – some banks have programs that allow cardholders to earn more points per dollar spent by signing up for higher levels of membership. These higher membership levels, however, typically come with higher fees and charges.

How do credit card points work?

Credit card reward points accumulate as you spend money on your rewards card, and these points can then be redeemed for a variety of purchases, from vouchers to tickets to electronics and other goods. Depending on the kind of rewards card you have, these points can be redeemed at participating retailers by presenting your card at the register and asking to pay with points; in most cases, they can also be redeemed  via your bank’s app.

Some frequent flyer cards will also allow you to transfer your points to your partner airline’s frequent flyer program, to be redeemed there. Typically, if you don’t have enough points to redeem for the purchase you want, rewards credit cards will let you use the points you have and then pay the difference on top.

Before signing up for any rewards card, it’s worth checking exactly how many points are earned per dollar spent, as well as any restrictions or caps on earning, and the value of said points. This can help you to determine whether the program will offer you value for money. It’s also worth taking note of the fees and interest you’ll be charged, as rewards cards can be more expensive than other more basic credit cards –  if the amount you’ll end up paying in fees outweighs the benefits you’ll earn, then a rewards credit card may not make financial sense for you.

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