CommBank Ultimate Awards Credit Card

Roland Bleyer

Credit Card Expert with over 15 years card experience and the founder of Creditcard.com.au. Ask Roland a Question about this card.

The Big Review: CommBank Ultimate Awards Credit Card

As an everyday earner, the CommBank Ultimate Awards Credit Card offers up to 3 Awards Points per $1, with no monthly fee as long as you spend at least $2,500 each month on the card. In terms of extras, these focus on travel, with overseas travel insurance included, paid lounge access via LoungeKey, and no international transaction fees.

• 100,000 Bonus Awards Points when you apply by 28 October 2020 and spend $5,000 on eligible purchases using your new card within 90 days from activation.
• Earn up to 3 Awards Points per $1 up to $10,000 each statement period (0.5 Awards Points per $1 thereafter)
• Earn unlimited Awards Points each year
• No international transaction fees
• International travel insurance included
• Paid lounge access via LoungeKey & Mastercard Airport Experiences
• Offers from Mastercard Traveller Rewards & Priceless Cities

• No monthly fee as long as you spend at least $2,500 on your card each statement period and choose to receive online statements
• Otherwise the monthly fee is $35
• No additional cardholder fee
• Up to 55 days interest free on purchases

This Card: The Lowdown

Designed to appeal to those with a monthly spend in the range of $2,500 to $10,000, this offering from CommBank is an everyday earner with some nice extras on the side. In terms of rewards, the card earns points that can be redeemed within CommBank’s own Awards program, or alternatively, transferred to frequent flyer programs such as Qantas (with a $30 annual fee opt-in) and Velocity.

What of those features then? Frequent travellers may appreciate the card’s overseas travel insurance (which needs no travel purchase to activate, unlike most other credit card travel insurances), its paid lounge access via LoungeKey, no international transaction fee, and various Mastercard extras such as Priceless Cities and Mastercard Traveller Rewards. But, while these extras could be handy, are they really enough on a card with a potential annual fee of $420?

Digging Deeper

With the basics covered, it’s time to dig a little deeper into what’s on offer with the CommBank Ultimate Awards Credit Card, so you can decide whether this card is right for you.

This Card: As a Rewards Card

Above all else, the CommBank Ultimate Awards Credit Card is a rewards card. So let’s see what it has to offer.

Considering the fact that this card would be best suited to those who spend at least $2,500 each month on their card (thereby ensuring they pay no monthly fee). Just make sure you clear your balance each month before it starts accruing interest.

Everyday Earning

This card has a tiered earn rate. You will earn:

• 3 Awards Points per $1 on international transactions made in store and online
• 2 Awards Points per $1 on purchases at major Australian supermarkets, department stores and petrol stations
• 1 Awards Point per $1 on all other purchases

This earn rate applies to spending up to $10,000 per month, after which point, you will earn 0.5 Awards Points per $1 until the next statement period. It is worth pointing out that despite this points shaping, there is no points cap on the total amount of points you can earn – and your points will never expire.

It’s also worth noting that, unlike many rewards cards that favour overseas purchases with a higher earn rate, the CommBank Ultimate Awards Credit Card doesn’t penalise this type of spending with an international transaction fee. That’s right, there are no international transaction fees on spending made overseas or online using the card.

If you want to boost your points earning, check out CommBank’s Awards program bonus partners. When shopping with these partners, you could earn bonus points to boost your balance.

What about transfer to frequent flyer programs? You may choose to opt in to earn Qantas Points directly, for an additional annual fee of $30. Instead of earning Awards Points, your points will be credited to your Qantas Frequent Flyer account directly, at a rate of 1 Qantas Point for every 2.5 CommBank Awards Points.

Alternatively, you can manually transfer your Awards Points to other frequent flyer programs.

Points Redemption

As an Awards card, the focus obviously remains on the CommBank Awards program, which just so happens to be the largest credit card rewards program of any bank in Australia (according to CommBank).

So, what can you redeem your points for?

• Pay with points at Myer: This option allows you to redeem your Awards points instantly in-store at Myer. All you need to do is show your card at a Myer register and ask to pay with points.
• Turn your points into travel at Flight Centre: You can use your points to cover flights, holiday packages, cruises and more in-store at Flight Centre, with no blackout dates.
• Transfer points to frequent traveller programs: As we mentioned previously, you can transfer your Awards points via the Awards site to more than 10 airline partners, including Qantas.
• Shop the Awards site: With this option, you can turn your points into gift cards, electronics, appliances, beauty products, homewares, movie tickets and more via the Awards site.
• Points Plus Pay: If you don’t have enough points for the reward you want, you can use points plus pay to make up the difference.
• Get cash back: You can redeem your Awards points for cash, credited straight into your credit card account, so you can treat yourself to whatever you like.

This Card: As a Travel Rewards Card

As you would expect from a card with ‘Ultimate’ in its name, the CommBank Ultimate Awards Credit Card has a few extras up its sleeve. Let’s check out its travel extras first.

Included Insurances

The CommBank Ultimate Awards Credit Card has three levels of cover. If you don’t activate the card’s cover before you travel (you do this online, via the app, or by calling CommBank), you will have base cover providing medical and liability expenses.

If you activate the card’s cover, you can enjoy more comprehensive coverage, including baggage and travel delays. There is no spend requirements or cost to activate, unlike many other credit card insurances that are described as ‘complimentary’.

However, you may choose to extend your cover by paying a premium. This could provide the cover you need if you have existing medical conditions, if you’re aged 80 or over, or if you want to do more adventurous activities.

Lounge Access

While this card does offer lounge access, it’s not free. As a cardholder, you can access more than 1,000 airport lounges around the world with Mastercard Airport Experiences provided by LoungeKey. You can also enjoy selected offers on airport dining, shopping and spas.

To make use of this feature, you need to present your CommBank Ultimate Awards Credit Card at a participating lounge. You will then pay the lounge fee for yourself and any guests travelling with you who also want to visit the lounge.

No International Transaction Fees

For those who travel overseas frequently or shop online at overseas retailers, this feature could be a real winner. Using the CommBank Ultimate Awards Credit Card, you will pay no international transaction fees on purchases made in currencies other than AUD.

Mastercard Features

As a cardholder, you can benefit from special deals via Mastercard. First up, there is Mastercard Traveller Rewards, which gives you cashback on your spending at participating retailers. All you need to do is check the site for offers, use your card in store, and you will be credited with the cashback as stated in the offer’s terms and conditions.

As an example, you could get US$50 cashback on every purchase of US$300 or more at Brooks Brothers in the US. Also in the US, you could receive US$25 cashback on a single purchase of US$500 or more at Bergdorf Goodman. Over in the UK, you could receive £5 back at Fortnum & Mason when you spend £100 or more in store.

Priceless Cities is another Mastercard extra geared towards the keen traveller. With this feature, you can access offers and experiences around the world. This could see you exploring a 15-course tasting menu at Diego Guerrero's DSPEAKEASY in Madrid, attending Members’ Day at the RHS Chelsea Flower Show in London, or watching the New York Yankees spring training as a VIP in Miami.

This Card: Extras on Offer

Anything else worth mentioning? Let’s have a quick look at the card’s remaining features.

• Accessibility: The card features an embossed orientation dot to help customers who are blind or who have low vision, allowing them to differentiate it from other cards.
• Card Controls: You can instantly lock, block or limit your card for extra control through the CommBank app or NetBank. You can also set a spending cap to manage your spending, set up an installment plan to manage your repayments, or use Spending Tracker & Insights to find out more about your spending habits.
• Security: Like most credit cards on the market right now, the CommBank Ultimate Awards Credit Card offers all the security basics, including protection against fraud and other unauthorised transactions with Mastercard Zero Liability, and 24/7 emergency overseas assistance if you lose your card with Mastercard Global Service.
• Tech Compatibility: Making digital payments a breeze, the card offers compatibility with Apple Pay, Google Pay and Samsung Pay. You can also use CommBank’s buy-now-pay-later partner Klarna to pay in installments when shopping online.
• Balance Transfers: If you have an existing balance you want to pay down, you could take advantage of the card’s balance transfer rate of 5.99% p.a. for the first five months. This reverts to the cash advance rate after the intro period ends.

This Card: The Essentials

So, what else do you need to think about before you make your decision? One of the most important factors will likely be that monthly fee. As standard, the card charges $35 per month, which doesn’t sound much on a per-month basis, but adds up to $420 per year. This is a large annual fee given the card’s limited features.

If you want to make this card work for you, it would be best to make that $2,500 spend each month to avoid paying monthly fees. However, you would also need to make sure you pay off your spending each month, as the card’s purchase rate certainly isn’t low. This is par for the course with rewards cards though – if you can’t clear your balance, you’d be better off with a low rate option.

What is nice to see is that there is no additional cardholder fee if you choose to share your card with someone else. This could help boost your points earning to make the most of the rewards on offer.

Decision Time

Is this the card for you? If you spend enough on the card to ensure you pay no monthly fees – and can afford to pay off that spending before it accrues interest – it could be a worthy option to have in your wallet. You will have to make sure the Awards program works for you – and be sure to read the small print to make the most of the features on offer.