What Are Bonus Points Credit Cards?
Bonus points are the reason people choose to sign up for either an airline or supermarket/retail store rewards credit card. People who don’t use a credit card to pay for things they can’t cover out of their salary will use the card for their everyday shopping, booking tickets and more so they can collect rewards from the points they save up.
Each $1 will have a points value. For example: $1 = 1.25 points, (or up to 2 or more points with some cards in some places). Each rewards program awards points differently, and they are different between those using an American Express card and a Visa or MasterCard. Read the terms and conditions and features of the rewards card you’re considering to find out how many points you can earn and where you have to shop to earn them.
How to Choose the Best Bonus Points Credit Card?
Choosing the best card for bonus points comes down to where you shop the most, and which cards offer the most bonus points, as well as introductory bonus points, which can be anywhere from around 5000 points to 20 000 points you get awarded just for signing up with the card.
When choosing a card, look at the retail partners the card uses, or whether they have a great and easy to use online store with things you might actually buy. If you shop at Woolworths for your groceries but the card you’re looking at only offers discounts through Coles and its partner stores, you might want to keep looking. Also if you know you want to use bonus points for travel, then go straight to the frequent flyer cards or platinum cards and don’t bother with the rest.
Avoid the biggest mistakes
Bonus points are a great thing to have, but you’ll really need to use your card to buy everything you can on it, and pay off the balance to avoid interest if you want to enjoy all the perks. You’ll need to be smart with your money, paying on time and spending it in the rewards program partner stores, or setting up automatic payments to make sure you never get charged interest.
The other big thing to remember is that some bonus points expire, or have a limit on how many you can build up, and others don’t. So when choosing think hard about how you will want to use your points. All in all though, they are a great credit card feature.