What you need to know about point caps?

Published on November 24th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

A reward credit card can unlock reward points that can be used to help you save on a flight, or help you reduce the amount you spend on your next shopping spree. But depending on your card there could be a points cap that can limit the number of points you can earn. This guide will help you understand what point caps are and you can maximise your rewards points earning potential.

How do point caps work?

Point caps are affected by the type of card that you own. Therefore, it will differ from card to card. What this means is that there might be a limit to how many rewards you can earn per statement cycle or on an annual basis. If you check your card details, you might find that your card caps your points on a certain amount that you spend. For example, you may be able to earn 100,000 bonus points only on the first $4,000 that you spend on the card for the first month of owning the card.

Hard point caps vs soft point caps

Knowing the difference between cards that come with hard point caps and soft point caps can make it easier to compare your way to a card that is suitable for you. Hard points mean that you will not be able to earn more points once you have reached the spending limit stated on your card and is applied on an annual basis. Soft points cap is applied on a monthly basis and mean that you are offered a reduced earn rate after each spending limit that is specified on your card.

How can I get a card with no point cap?

If you are a point chaser who needs to gain as much points as possible to cover an expense that you may have then a points cap can rain on your parade. However, it is possible to find credit cards in the market that come with no points caps, but this could come with higher annual fees or a higher earn rate. Shopping around and comparing cards could help you find the best deal suited to your needs.

Maximizing your rewards points earning potential

One way to maximize gaining points on your reward credit card is to have a good idea of how much you generally spend. This can help you on your search for a card that matches your spending and help you choose a card that comes with point caps that will not restrict you.

Knowing when your credit card statement cycle begins, and ends can also be beneficial when it comes to maximizing your reward points. It can be perfect for also timing big ticket purchases that you plan on making with your card. If you find yourself frequently exceeding your points cap, then this could be a sign that you may need to change your card.

Did you find this page helpful?

Thanks for your feedback!

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.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Related articles

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy broker and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.