Australian Capital Territory Rewards Credit Cards

Rewards Credit Cards

For Australians who want to get the most out of their credit cards, getting ample rewards for their usage is certainly an attractive offer. There are different types of credit cards available in terms of the bonuses that they provide from low interest rates to providing discounts from certain companies or particular services. Over the years, many credit card companies have developed advertising strategies based on providing incentives for getting people to try their product.

One of the most popular types is the reward credit cards that provide consumers what many of the things that they want simply by using the card on a regular basis.

What is a Rewards Credit Card?

Put simply, each time you use a rewards credit card you are putting points that can be applied towards certain goals. While many people are familiar with the type of rewards that includes miles for flights to different destinations, there are other types of rewards that a person can work towards depending on the credit card company that they choose.

In all respects, rewards credit cards work like standard versions in terms of making payments, withdrawing funds and the like. The only obvious difference is that they reward the user with points towards something that they want to achieve such as flight miles which may mean free or heavily discounted airfare tickets.

Advantages and Disadvantages of Rewards Credit Cards

The clear advantage is that you are being rewarded with products or services at a discounted rate by using the rewards card. This means that just doing what you normally do on a day to day basis will rack up the points needed to get what you want for free or for a substantial discount. Naturally, it will depend on what you want to achieve, but in the case of airfare miles many people enjoy free flights every year or other year because of the reward points they have racked up over that period of time.

The big disadvantage will depend on the credit card company that you choose. Rewards cards tend to have higher interest rates and higher fees than standard credit cards. So this means that you will need to calculate the rewards points gained minus the fees and interest rates to see if you are coming out ahead. Plus, the people that benefit most from rewards credit cards are those who use them on a virtually daily basis.

So, if you are the type that only uses credit cards occasionally, then you should skip the rewards credit cards as you are far better off saving for the trip rather than trying to earn it through reward points. However, if you use your credit card on a virtually daily basis, then this type of rewards system may be right for you if you choose the company that provides the lowest interest rates and fees compared to the rewards that you receive.

For Australians who use their credit cards daily, having rewards may be the right benefit you need to save up for that big trip or vacation.