Get with the program

Shop smart to earn points and you will fly high, writes Anthony Keane

EVERYBODY loves something for nothing and credit card reward programs are just that — as long as you use them wisely.

Rewards points generated by my credit card and shopping habits have helped me avoid paying for domestic airfares for about a decade. I wince when people pull out a debit card at the supermarket or decline to swipe their customer loyalty card. You’re not going to use those points? Can I use them instead, I ask in my head.

Reward schemes have been dramatically watered down in recent years, and took another hit in 2017 when Reserve Bank rule changes led to more tightening.

Thus points collectors have to be smarter. Credit card points programs are only worth it if you spend all you can on them, but look out for surcharges on cards such as American Express. If a shop’s going to slug you 3 per cent for using Amex, keep it in your wallet. Rewards only work if you repay your card debt within the interestfree period. Otherwise the high interest cost of these cards (about 20 per cent) outweighs any benefit. Reward cards also come with high annual fees (often about $400) so make sure you spend enough to offset that. Some cards offer free travel or a free annual domestic flight, which goes a long way to offsetting fees.

Check your card offers unlimited points earning capacity. Some cap points at a few thousand a month, after which earning power is diluted.

Finally, seek ways to double your point-earning power. Supermarkets accept all rewards cards and offer their own rewards schemes.

A typical family spend on supermarket shopping alone, combined with the right rewards card, can deliver enough points for two or three return flights a year.