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The evolution of credit cards has ushered in some changes that reward people for every time they swipe. Depending on your card features you can get access to gift cards, a free flight ticket, cash back offer, exclusive tickets and merchandise. But with so many options available which one is suitable for you?
Gift cards and rewards that offer exclusive access
Gift cards are popular within the card market in Australia. According to the Australian Retailers Association, the total spend on gift cards was approximately $1.25 billion to $1.5 billion in 2014. Furthermore, the average spend on these cards was $54.
They can be purchased online as an electronic gift certificate or in store. Gift cards can be used as a gift to a loved one which they can later use to purchase at a store where the card is recognised. Unfortunately, one of the drawbacks of a gift card is that the receiver of the gift card may be unable to redeem the cards full value.
There is also a required amount that you need to spend to access the benefits of the card. Choice found that only 5 cards on the market returned $150 after the annual fee was deducted.
Frequent flyer reward cards
Two of the prominent airlines in Australia have partnered up with credit card providers to offer consumers the ability to join a frequent flyer program and be rewarded with points for every time that they spend. These programs have targeted certain shops, restaurants, and accommodations to make it more convenient when it comes to earning points if you are not flying to do so.
This card is suited for families that are looking for ways to reduce the travel costs whether on holiday or travelling for business purposes. Frequent flyer reward credit card usually comes with an annual fee that consumers need to be aware of.
There is also a points cap, which means that reward card holders are limited by the frequent flyer program in terms of how many points they can earn. Remember to check the expiration date to avoid any disappointments.
Cash back offer credit cards
Cach back credit cards give you the opportunity to earn hundreds of dollars in cash rewards. Cash back cards reward as a percentage on each purchase made of which you can be used on almost anything. For example, if your credit card paid 1% cash back on each purchase you made, you will earn a $1 for every $100 in credit card purchases you make.
These can later be redeemed as cash, gift cards, and other options that are offered by your credit card issuer. This also comes with an annual fee and some cards could require that you spend a certain amount before you are able to redeem your cash back.
All reward credit cards have benefits that can come in handy for various shoppers, but comparing your options can help you avoid choosing a card that is not suitable for you. Always remember to check the fees and charges that come with the card to make a sound judgement.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
