The challenge: Maria Bekiaris
Use your credit card more often to build up points
ANZ made news last month when it announced that it would no longer offer customers American Express companion cards with its rewards and frequent flyer cards. The bank joined a long list of credit card providers that have already watered down their rewards programs as a result of the Reserve Bank’s changes to interchange fees.
Mozo data services director Andrew Duncanson, who has been predicting that the end was near for American Express companion cards, says this is only the first in a series of changes to come. While you may be wondering if it’s time to ditch rewards cards the other option is to look at ways to maximise your points.
Start by making sure you have the right card. Canstar says you should think about how much you spend each year, what type
of rewards you are most likely to use and whether the card costs are less than the rewards. It’s also important to find out if the points are capped or will expire.
If you’re getting a new card, look out for bonus offers. Some providers offer extra points when you apply for and are approved for a certain credit card or you spend a certain amount in a certain period.
The more you spend the more points you will earn, so look at ways to use your card more. Of course, you should only do this if you can pay it off in full each month.
Use it for everyday purchases. You can earn more points by making small changes, such as downloading a coffee app and linking it to your card, says Steve Hui, the founder and CEO of iFlyFlat. The same goes for linking it to your PayPal account. Or use it to pay for group bills such as dinner or even concert tickets, he suggests.
Add your partner as a secondary cardholder (assuming it doesn’t cost too much). They’ll get their own card and this will double your rewards earning potential.
Find out if there are any businesses partnered with your rewards card that let you earn points at a higher rate.
You also need to be smart about redeeming your points to get the most value. One way to work this out is to calculate the “point currency”. This is basically how many points you need to get $1 of a reward. Canstar explains: For example, if you need 7000 points to redeem a $50 gift card, the point currency is 140 points for each $1.
You can use the points currency to compare rewards – the lower the number the better. So let’s say 7000 points gets you a $50 gift card (140 points) or you could get a toaster you wanted worth $60 for 8000 points (133 points). You’d be better off getting the toaster. Or maybe you can get a flight from Sydney to Melbourne worth $200 for 17,000 points. The points currency is 85 so that definitely gives you the best bang for your buck.