Fancy yourself a rewards point-chaser? CommBank has launched a new rewards credit card, with customers able to earn up to 3 Awards points for every dollar spent.
With a minimum credit limit of $6,000, CommBank’s Ultimate Awards credit card will allow customers to earn:
- 3 points for international transactions;
- 2 points at major Australian supermarkets and petrol stations; and
- 1 point for every dollar spent up to $10,000 in a statement period.
Further, cardholders can avoid a $35 monthly fee by spending at least $2,500 on the Ultimate Awards card in the statement period. Cardholders will also pay no international transaction fees for purchases made overseas or online.
Hey big spender
Put simply, rewards programs are designed to encourage big spending. However, if you are already a big spender you may be able to capitalise on your regular habits.
Rewards cards allow users to earn rewards points that can be exchanged for some serious goodies. These include in-store purchases, as well as gift cards, electronics, home goods, travel and cash back through online awards sites.
It can be easy to grow debt if you’re not careful. If your income or budget changes, or you don’t always pay off your credit card on time, rewards credit cards may not be the best fit for you.
But if you are responsible with your purchases, pay off outstanding debt and/or make more than minimum repayments, you may be able to earn some fun rewards.
Comparing the big four banks
In terms of platinum rewards cards, here’s how the big four banks compare:
|Credit card||Purchase rate||Balance transfer rate||Annual fee|
|CBA Ultimate Awards Card||20.24%||5.99% first 5 mths, 21.24% ongoing||None - $35 per mth fee that’s waived if minimum spend limit met.|
|ANZ Rewards Black Card||20.24%||20.24%||$375|
|NAB Qantas Rewards Premium Card||19.99%||0% first 6 mths, 21.74% ongoing||$250|
|Westpac Altitude Black Card||20.49%||6.99% first 12 mths, 21.49% ongoing||$250|
When choosing the right rewards card for your budget and needs, it’s important to check that the rewards program itself offers freebies you’ll actually use. For example, if you’re not a big traveller and the rewards card focuses on frequent flyer points, travel insurance and other perks, it may not be the right fit.
It’s also important to check the card’s fine print to see:
- Can you afford to spend enough to earn the amount of points that would make the card worthwhile?
- Can the points be easily redeemed?
- Is there a limit on the amount you can earn?
- Do the points expire?
- What is the dollar-to-point ratio?
- What fees are involved?
- What interest rates might you be charged?