Credit card reward points are an incentive introduced by credit providers to encourage credit card spending. These points are normally awarded per dollar spent on the credit card. The amount of points per dollar can vary depending on the provider as well as the type of card. Premium and platinum cards tend to offer more points per dollar than entry-level reward cards, with some cards providing up to three points per dollar spent. It is important to consider how many points a card provides per dollar before applying.
Are there any credit cards that come with 20,000 bonus points?
Bonus points are common on reward cards. Bonus points are often awarded once a specific level of spending has been reached on the card within an allocated period of time. These points are normally only awarded for the first year once the spending requirements have been met.
How do you find credit cards that come with 20,000 bonus points?
RateCity provides product information on many of Australia’s major banks and credit lenders. Credit card information and comparison tools can be found on the credit card page. For a full overview of the card, click through to the product page.
Why do credit cards offer bonus points?
Credit card providers offer bonus points to entice new credit card applications on rewards cards. In comparison to low-rate cards, these rewards cards often come with a higher interest rate as well as higher annual fees. Bonus points can be a way for lenders to distract consumers from these high annual fees and higher interest rates.
What are the pros and cons of credit card rewards?
Reward credit cards offer both positive and negative aspects. It is important to weigh up the pros and cons of using a reward credit card over a traditional low-rate card before applying. Reward credit cards incentivise spending; to make the most of your card it is important that you are spending a reasonable amount on the card every month and can pay it off within the interest-free period. The bonus points offered with reward cards are a great way for consumers to make the most of their cards with points redeemable for flights, upgrades and purchases.
It is important to look at both the annual fee and interest rate of the reward card before applying, as many reward cards come with annual fees and a higher interest rate. As bonus points are usually only offered during the first year, it is important to consider whether the card is worthwhile keeping in the long term. Unlike low-rate cards, reward cards are designed to benefit those who spend on the card every month. Annual fees are normally higher on reward cards, so it is important to make sure the value obtainable from the reward points is higher than the annual fee. Individuals who have a low credit card spend may be more suited to a low-rate card with a lower annual fee; choosing a reward card may put them at a loss after the first year.