Australians can still score hundreds of dollars’ worth of rewards points through credit card sign-up offers despite providers hiking annual fees and cutting perks in the wake of the Albanese government’s surcharge crackdown.
Some banks have scaled back credit card benefits but Canstar Data Insights director Sally Tindall said lucrative sign-up bonuses remain available for customers willing to shop around.
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“Australians love rewards points and it is a viable option if you’re homing in on sign-up points, because banks still need new business to come in the door,” she told Sunrise on Thursday.
Tindall said Westpac’s Altitude Rewards Black card was leading Canstar’s database for rewards points, offering 200,000 points to eligible new customers who sign up.
“That gives you $680 in gift cards. That’s a pretty big windfall,” she said.
For frequent flyer points, Westpac was also offering up to 150,000 frequent flyer points, while American Express had offers of up to 120,000 points.
The traps behind the big bonuses
Tindall warned customers to look beyond the headline offers, with higher annual fees and minimum spending requirements potentially eating into the value of the rewards.
She said customers needed to be aware that many banks were no longer handing over sign-up points in one lump sum but instead over 12 months.
“Credit cards are littered with traps,” she said.
That can mean customers paying two annual fees before receiving all their promised rewards, with some fees about $1200 per year.
Customers also need to meet minimum spending requirements within a set period to qualify for the bonus points.
“For the Westpac card, it’s $6000. If you can’t meet that, you’re not getting those sign-up points at all,” Tindall said.
While putting larger expenses, such as council rates and other bills, on a new card can help customers reach the threshold, she urged people to read the conditions carefully.
Who should steer clear of rewards cards?
Tindall said rewards credit cards were not suitable for people who regularly carried a balance and paid interest on their debt.
“If you’re carrying around a debt on your credit card, rewards cards are not for you,” she said.
“You need to sail that card down the river and look for low-rate options.”
“That is critical,” she said, warning that accumulating interest could quickly undermine the value of any rewards earned.
