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Rewards Credit Cards
Select your estimated monthly spend & your preferred way of redeeming points to compare Rewards Credit Cards.
Compare Rewards Credit Cards
We have all the major banks plus lots of other providers too
Canstar is now Australia’s biggest financial comparison site,
comparing more brands than any other.
What is a rewards credit card?
Rewards credit cards enable you to earn points based on the amount you spend on the card. You can typically redeem your accrued points for a range of perks, which can include flights and travel benefits, retail and dining gift cards, and to pay down your credit card balance. There are also sometimes bonus points on offer when you sign up, and other types of benefits included such as purchase protection.
It is worth checking whether there is a limit to points you can earn, if they expire and if any restrictions apply, as well as weigh up any annual fee charged (as these can be quite high in some cases). The interest rates for rewards credit cards can also be on the higher end of the spectrum, which is worth being mindful of if you don’t pay off your balance in full each month.
What is a credit card?
A credit card is a form of unsecured personal loan that gives the cardholder access to a revolving line of credit. That line of credit is accessed via a small, plastic card – the credit card.
The cardholder can make purchases up to a specified limit. The ‘spent’ credit can be repaid by the cardholder to the financial institution who supplied the card by the due date in full or in part. If the credit is only repaid in part, the remaining balance is taken as extended credit and interest will be charged on that amount until the cardholder repays it. For some cards, interest is charged on all purchases and transactions from the day of the transaction.
A credit card can present a higher personal risk to customers financially. It can make it easier to spend on impulse if you’re not disciplined about how and when you use the card. Credit cards, particularly rewards cards, also typically have higher interest rates than other forms of credit such as personal loans, because they are an unsecured debt.
However, credit cards can be useful for a variety of reasons if used responsibly:
- Build a positive credit history by using the card and paying it off by the due date every month.
- Anti-fraud protections apply if a card is lost, stolen, or used in online credit card fraud.
- Rewards programs can benefit you for your spending.
- Credit limit available is more than the usual daily limit on a debit card.
- Can be convenient for making purchases overseas, along with some back-up cash.
How Canstar compares Credit Cards
Canstar uses a sophisticated and unique star ratings methodology to compare credit cards. We compare a wide range of credit card products in Australia and present the results in a simple, user-friendly format. Our rating methodology for comparing credit cards is transparent and extensive.
Canstar’s methodology compares all types of personal unsecured credit cards in Australia and accounts for an array of characteristics such as:
- Fees
- Interest rates
- Number of interest-free days
- Standard features
- Premium features
- Rewards programs or loyalty programs
- No frills card options
The results are reflected in a consumer-friendly 5-star concept, with 5 stars denoting a product offering outstanding value.
Types of credit cards
There are several different types of credit card, each of which can be compared on the CANSTAR website:
- Low Rate Cards
- Low Fee Cards
- Rewards Credit Cards
- Frequent Flyer Credit Cards
- Premium Cards
Then there’s the question of MasterCard vs Visa, or AMEX vs Diner’s Club. In terms of credit card providers, your lender can offer you different credit cards depending on which card payment service they partner with:
- MasterCard
- Visa Card
- American Express Card
- Diners Club Card
There is a wealth of different features that are available with credit cards, with options to suit all sorts of needs and budgets. It’s important to consider your circumstances when choosing which credit card is right for you, including:
- How much you spend per year on your card
- Whether the annual fee or other costs for a rewards program would be worth it
- What type of reward you are most likely to use
- Whether you already have a credit card debt
Canstar rates rewards programs for four different levels of annual spending on your credit card – $12,000/year, $24,000/year, $60,000/year, and $120,000/year. A summary of features that we look for in an outstanding value credit card is contained in the Methodology attached to our Credit Card Star Ratings report.
