Hacks can unlock $ 3000 of rewards

CREDIT card rewards programs have copped some flak lately after banks watered down their points- earning capacity and in some cases closed lucrative companion card programs.

But there’s still value to be found by those who use their cards wisely, pay off balances before interest hits, and maximise the value their rewards deliver.

A new analysis by Mozo. com. au has found that you can earn almost $ 3000 in value this year alone by playing your card right.

“It’s common to sign up for a rewards card but then not really use the card to its full advantage,” said Mozo director Kirsty Lamont.

“Many people fall into the trap of not earning enough rewards to outweigh the cost of the card fee.”

Mozo’s number crunching found the best ways to save were:

Grab a sign- on bonus, with American Express Qantas Ultimate and NAB Qantas Rewards Signature cards offering 100,000 points, worth $ 1700 of domestic flights;

Double up earning power through offer of multiple points per dollar spent, available at retailers such as Woolworths and David Jones, to earn an extra $ 425 of rewards;

Earning the most points per dollar spent, by seeking a card earning 1.5 rather than 0.5 points, to earn an extra $ 306;

Using attached free benefits such as travel insurance and airport lounge passes, earning $ 320;

Qualifying for cashback offers, such as Virgin Money’s $ 100 cashback once $ 500 is spent.

Some cards offer the full cost of the annual fee as a travel credit worth $ 450 a year, and Ms Lamont said this was likely to become more popular because it was easy to see and redeem.

“There’s a move by card providers to provide more instant and easily redeemable rewards,” she said.

Benny Statovski, 34, uses his rewards credit cards everywhere possible, “even at McDonalds for 50c cones”.

He said using points for flights delivered the best value: “When I started I was put off by the annual fee, but I did the figures and realised I was making more back from using the points,” he said.

“People think it’s too much work – it truly isn’t, and it’s worth your time.”

American Express vice president consumer cards Austin Huntsdale said the best way to get value was to use all the benefits such as complimentary travel credits and insurance.

“We have customers who are very sav vy at maximising the value of their points but forget about the additional benefits,” he said.

Mr Hunstdale said flight upgrades delivered the best value on points earned, and people using points to pay airline taxes should first check the conversion fee. SAVVY SPENDER: Benny Statovski buys everything possible on his rewards cards and uses the bonuses for free flights.