Travel blogger Anthony Bianco has made the most of credit card rewards programs for more than a decade.
"It's pretty important to find any sort of travel hack that will enable me to travel for as long as possible for as little money as possible," says Bianco, who blogs at The Travel Tart.
![American Express was independently rated by Choice and Mozo to have some of the best rewards programs.](/web/20160915112721im_/http://www.theage.com.au/content/dam/images/g/r/b/f/v/a/image.related.articleLeadwide.620x349.grbfjb.png/1473652823882.jpg)
Bianco is a power user of credit card rewards, someone who maximises the points he earns but diligently pays off the card balance every month.
His method is to spend as much as he can on his credit card.
"The main thing here is to use your credit card to pay for everything and I literally mean everything," he says.
"All of your shopping, all of your bills, and maybe even someone else's if you know they will pay you back.
"The best way is to pay for large purchases that aren't yours and then have the money reimbursed into your account. Things like volunteering to pay for large functions at work, if you have a large enough credit limit, or paying for concert or sporting tickets on behalf of your friends."
Bianco has a Visa card linked to his Qantas account and he saves his Frequent Flyer points for long-haul flights.
![Credit cards that let you earn frequent flyer points are better value than general rewards or cash back, according to ...](/web/20160915112721im_/http://www.theage.com.au/content/dam/images/g/r/b/f/q/b/image.related.articleLeadwide.620x349.grbfjb.png/1473652823882.jpg)
He is currently reviewing his choice of card, which he does every six months.
"I look for the lowest annual fee possible and compare this to the value of points that I might accumulate as I'm looking for value for money," he says.
![Anthony Bianco puts a lot of effort into maximising his credit card reward points.](/web/20160915112721im_/http://www.theage.com.au/content/dam/images/g/r/b/f/k/n/image.related.articleLeadNarrow.300x0.grbfjb.png/1473652823882.jpg)
The key phrase here is value for money. While zero-fee or low-fee cards are appropriate for first-time credit card owners or those who use their cards infrequently, a card with an annual fee may deliver better value for power users keen to maximise rewards.
Gift cards and cashback
There are three main types of credit card rewards: general rewards such as gift cards, event tickets and merchandise; airline points; and cashback offers. Some programs allow you to earn all three.
Independent consumer advocacy organisation Choice recently worked with comparison site Mozo to review the rewards programs of 117 different credit cards. It found that the best frequent flyer rewards programs are superior to most cashback or gift card reward offers.
If you are not a traveller and keen to earn general rewards points, it pays to find out where you can earn bonus points from official partners such as retailers.
Choice only found five gift card programs that delivered more than $150 in value, after annual fees, in return for a $2000 monthly spend. These were the GE Money GO MasterCard, the Myer Visa, the American Express Qantas Discovery, the Coles Rewards MasterCard, and HSBC Premier World MasterCard.
Cashback programs can be simpler to understand than other rewards systems but sometimes come with strings attached – namely high interest rates. Carefully read the terms and conditions to make sure you are actually eligible for the cashback deals.
Cashback programs did not fare well in the Choice analysis, with only two cards delivering more than $100 in value, after annual fees, in return for a $2000 monthly spend. These were the Westpac Altitude Visa or American Express (with the rewards returns "much better" on the Amex) and the HSBC Premier World MasterCard.
Travel
The best value in the rewards game is for frequent flyer points, according to the Choice-Mozo analysis.
Loyalty programs vary between airlines, but they may include travel insurance and in-flight purchases. Remember, you may be able to earn points with partner airlines.
Burning points on international flights usually represents better value than domestic flights. A flight from Sydney to Melbourne, for example, may cost 17 points per kilometre, but a Sydney to London flight may only be 6 points per kilometre.
For low-spenders, Choice recommended only two products: American Express Velocity Escape and American Express Qantas Discovery.
The American Express Velocity Escape card was the best-rated product for both a $2000 monthly spend and a $5000 monthly spend.
The American Express Qantas Discovery card was ranked second for a $2000 monthly spend, and third for a $5000 monthly spend.
Two ANZ products, the bank's Rewards Platinum Visa card and its American Express Velocity card were ranked equal second for a $5000 monthly spend.
A changing landscape
Lenders are working hard to attract credit card holders to rewards schemes, particularly after recent reforms announced by the Reserve Bank of Australia. New rules to limit the interchange fees paid to card issues led to some banks lowering the rewards points on offer.
For example, the ANZ Rewards Classic earn rates have dropped from one point per $1 to 0.75. points per $1.
As well as the Choice rankings, you can assess special offers and bonuses at comparison sites such as Canstar, Infochoice and RateCity. These sites will inform you on the points-to-dollar ratio and the annual value of rewards.
Don't forget it's not just about the earn rate (how quickly you accrue points), but also the burn rate (how many points you need to redeem anything of value).
Rewards schemes aren't for everyone. There's no point signing up for one if you cannot afford the annual fee or in the worst case scenario, the high interest rate should you fall behind with payments.
If you decide to go for a credit card rewards scheme, always pay off the full balance at the end of every billing period to reap the full benefits of rewards without the nasty interest hangover.
This article was produced in commercial partnership with American Express. The reviews and advice are independent.