If you’re in the market for a new credit card, you’ve probably come across rewards cards that offer bonus points. From the outside, reward points can seem like you’re getting something for free. While there are benefits to cards that offer bonus points, they often attract higher fees and interest rates. Before you decide on a credit card that offers bonus points, it’s important to do your research and make sure that the costs don’t outweigh the benefits.
Credit cards that offer over 100,000+ bonus points reward your everyday spending with rewards points. Depending on the type of card, the bonus points could be linked to frequent flyer programs or could be used to redeem cashback, free flights, merchandise or various other lifestyle rewards.
How do credit card rewards programs work?
There is no one-size-fits-all credit card that offers over 100,000+ bonus points. Depending on the lender and the loyalty program, each reward credit card works slightly differently. Most credit cards that offer over 100,000 bonus points usually earn the cardholder points for every dollar they spend. When you’ve accrued enough bonus points, you can redeem the points for travel, flight upgrades, frequent flyer points, accommodation, gift cards, merchandise and other loyalty rewards.
Is it worth applying for credit cards with 100,000+ bonus points?
The general rule of thumb is that the more you spend on your rewards card, the better sense they make. To get the most out of a credit card rewards program, you’ll need to do your research to make sure that the amount of points you earn is worth the additional fees and higher interest rates you could be paying. If you regularly shop at a particular supermarket or petrol station, a reward credit card that’s linked to that store might make the most sense. If you’re a jet-setter, a credit card that’s linked to a frequent flyer program will get you the greatest return on your spending.
Typically, reward programs are designed to incentivise cardholders that spend big. If you have a legitimate reason to put all your expenses on your rewards card, it may make sense to earn bonus points if you’re spending that money anyway.
The risk for cardholders that don’t spend big is that the points could encourage spending for the sake of points. When you work out the cost of the bonus points and factor in the card fee, it could be detrimental. For cardholders with smaller spending budgets that generally don’t pay their full monthly balance, opting for a lower rate card could make better financial sense.
What do I look for in credit cards with 100,000+ bonus points?
Before you apply for a credit card with 100,000+ bonus points, use our online comparison tool to find a reward card that suits your spending and lifestyle. Here are some factors you may consider:
- Point value Check how many points you’ll earn with each dollar spent. The standard ratio is 1 point per $1.
- Minimum spend Some cards require a minimum monthly spend to get bonus points.
- Points expiry Points might not last forever, so check for an expiry date to make sure you’re not forfeiting any rewards unnecessarily.
- Points capping Some reward programs cap the number of points you can earn. Check this against what you spend to make sure you come out on top.
- Bonus points Some cards have the added incentive of earning bonus points. This may be a lump sum when you sign up, if you shop at a specific retailer or if you meet a minimum monthly spend.
- Lifestyle rewards Some rewards programs are fixed to a certain program, such as a specific frequent flyer program. Check to see this fits your lifestyle or whether flexibility is more important.
- Redemption Redeeming points should be as easy as earning them. Check the process and timeframe for point redemption.
Because you’re applying for a credit card, be sure to look beyond the rewards program and compare interest rates, annual or monthly card fees, foreign transaction fees, purchase and cash advance charges and balance transfer costs.