It might mean you've spent a lot (too much perhaps?) on your credit card but a healthy balance of rewards points in your account means you can now enjoy using them to claim one or more rewards, just in time for Christmas. But what type of reward should you choose?
Of course, the best reward is having paid off your credit card entirely, so if you have been carrying an outstanding balance on your plastic the best way for you to spend your rewards points is credit toward your debt. Most rewards programs offer card holders the option of exchanging points for credit with "prices" ranging from 100 to 250 points per dollar of credit although these are usually bundled into $25 credit packages. It certainly doesn't make your splurging on your credit card free but by reducing your debt you'll save money on the interest you would have been accruing.
If you're not being hit for interest on your credit card, but are still looking to save money rather than get a free kettle or digital camera, then see what shopping vouchers your rewards catalogue has on offer. You may be able to spend your rewards on a voucher towards something you need to purchase or you could use the vouchers for purchasing Christmas gifts, or even use the voucher as the gift itself.
Regardless of what you want to purchase with your points, to make sure you get the best value you need to consider the "Point Currency" of the rewards you're choosing. "Point Currency" was developed by CANSTAR CANNEX as a way of looking at the value of a reward and is a ratio of the points required to claim the reward and the recommended retail price value of the reward:
POINTS REQUIRED TO REDEEM THE REWARD/RRP VALUE OF REWARD = POINT CURRENCY
The Point Currency tells you how many points it takes to buy $1 of that particular reward, so the lower the point currency; the better value your reward. Of course the best value reward is one that you can use, so when you come to spend your points, make sure you select a reward that suits you, not just one that seems like a good deal at the time!
How do I compare rewards?RateCity is the best website to shop around on for all reward programs, as well as most other financial products. At RateCity, you can use expert comparative data from CANSTAR CANNEX, Australia's leading financial research and ratings firm. CANSTAR CANNEX has analysed and evaluated hundreds of financial products to award five stars to only the very best. The CANSTAR CANNEX star ratings go much further than just looking at interest rates. They also take into account important features so you can be confident you are getting the best product.
Use our easy search tools to compare Reward Programs at RateCity.
SEARCH BY: