How credit card points work

Every time you use your credit card, you can earn rewards points to access various benefits and bonuses. Credit card rewards points are a great way to benefit from your everyday spending. If you’re smart about how you use your card, you can earn points to go towards your weekly grocery shop, cashback and gift cards, or your next big holiday.

Because of the benefits they offer, credit cards with rewards points can come with higher fees and interest rates. It important to understand exactly how the points work so you can make sure the extra costs are worth it.

We offer a range of rewards credit cards, including Qantas Rewards credit cards and NAB Rewards credit cards. Before you decide which one is right for you, you should compare rewards credit cards to understand how they work and how you can spend your rewards points.

How do credit cards with points work?

Earning points: You can earn points on eligible purchases made with your rewards credit card. Your point earning rate will depend on the type of card you have and the type of purchases you make.

Points redemption: Redeem your points for flights, gift cards, merchandise or cash back, but remember that different rewards cards have different points requirements.

Choose a card: Before you sign up for a new credit card with rewards points, compare the points earning rates and annual fees. Evaluate redemption options to ensure they match your preferences.

Manage costs: Some rewards credit cards have higher interest rates and fees. Consider whether the potential reward benefits outweigh the high interest rates and fees.

Learn how to earn NAB Rewards and Qantas Points.

Ways to earn points

The smart way to earn rewards points is to use your credit card for your everyday spending – things you need and would buy anyway, so you’re not spending on unnecessary items or creating debt just to earn points.

You could earn points by:

1. Paying your bills.
2. Buying groceries.
3. Paying for recurring subscriptions, like streaming services.
4. Filling up your car with petrol.
5. Eating out.

If you can, aim to pay off your credit card in full each month – that way you can earn rewards points without having to pay interest on your purchases.

Ways to use your rewards points

Once you’ve earned enough points with your credit card, you can redeem them for all sorts of things Here are some ideas for using your points:

Gift cards

There’s always another birthday, anniversary or celebration on the horizon, and a gift card can be the ideal present when you’re not sure what to get someone. You can redeem your credit card rewards points for all kinds of gift vouchers, from groceries and technology to homewares and fashion.

Travel

If you’ve got a holiday coming up, you might be able to use points for big expenses like flights and accommodation, or travel accessories like bags and suitcases, outdoor clothing and tech items like cables and chargers.

Cashback

Another option is to redeem your points for cashback, which you can spend on whatever you please. Check the terms and conditions of your credit card since you may only be able to earn cashback on certain purchases.

Charitable donations

If you’re feeling generous, consider redeeming your points for a cash donation to charity. You can choose from a variety of organisations that are doing good in the world, from animal and environmental charities to those working to end homelessness or raise money for cancer research.

Retail products

If you’re looking to upgrade your TV, get accessories for your pet or decorate your home, have a look at what your rewards points can get you. You can redeem rewards points for all kinds of everyday items.  

Choose between our two rewards offerings