What Are Credit Card Points? A Guide in Australia

Credit card points are one of the most popular rewards systems in Australia — but understanding how they work, how much they’re worth, and how to use them wisely can make a big difference to the value you actually get. In this guide, you’ll learn what credit card points are, how rewards programs work, how to redeem points, common pitfalls to avoid, and when alternatives (like personal loans) may be worth considering.

For a refresher on credit cards and how they function day to day, you can also read:
How do credit cards work? https://www.credit24.com.au/blog/how-do-credit-cards-work/

Apply now: https://www.credit24.com.au/au/apply/login

What are credit card points?

Credit card points are part of a credit card rewards program that lets you earn points on eligible spending. These points can then be redeemed for flights, gift cards, merchandise, cashback, or other rewards, depending on the provider and program rules.

They work as a type of loyalty incentive, encouraging cardholders to use their card more often.

Credit card points are different from cashback programs — instead of receiving money back directly, you earn a reward “currency” that may be redeemed in different ways.

Major credit card rewards programs in Australia include:

• Qantas Frequent Flyer
• Velocity Frequent Flyer
• American Express Membership Rewards
• CommBank Awards
• ANZ Rewards
• Westpac Altitude Rewards
• NAB Rewards

Providers offer reward points because they’re designed to build loyalty and encourage spending over time.

If you’d like to understand different card options (including rewards cards), see:
Types of credit cards: https://www.credit24.com.au/blog/types-of-credit-cards

How do credit card rewards programs work?

Credit card rewards programs are simple in concept:

• You earn credit card points for eligible spending.
• Points accumulate in your rewards account.
• You redeem them through the provider’s rewards portal.

Points can vary depending on:

• The spend category (e.g., groceries, fuel, dining, travel)
• The card level (classic, platinum, black)
• Whether there are bonus promotions

Some cards offer introductory bonus points, while others focus on higher ongoing earn rates.

Expiration policies

Depending on the program:

• Some points may not expire while your account remains open
• Some may expire after a period of inactivity
• Airline points may expire after a set number of months, depending on the program rules

Because expiry rules differ, it’s worth checking the program’s current terms and conditions before applying.

Direct earn vs transferable points

• Direct-earn cards send points straight to an airline program like Qantas or Velocity.
• Transferable points (e.g. some membership programs) may be converted to multiple airline or hotel partners.

Points earned for every dollar spent

Different cards offer different earn rates. Examples can include:

• Standard cards: around 0.5–1 point per $1
• Platinum cards: around 1–1.5 points per $1
• Premium cards: sometimes higher earn rates, often with higher fees and stricter conditions

Bonus category examples can include:

• Dining: higher points per $1
• Overseas purchases: higher points per $1 (sometimes alongside foreign transaction fees)
• Travel bookings: bonus points depending on the provider

Purchases that often do not earn points can include:

• Government transactions
• BPAY
• Cash advances
• Balance transfers
• Some payment types such as OSKO transfers (rules vary by provider)

Some cards may also cap the number of points you can earn each month or year.

How credit card points values differ between programs

A common misconception is that all credit card points are equal — but they’re not.

Point values differ depending on:

• Whether points can be transferred to airlines
• The type of reward you redeem (flights may offer different value compared with gift cards or merchandise)
• Whether the card is tied to a flexible bank program or a fixed airline program
• Availability, restrictions, and redemption rates set by the program

In general, bank reward points may offer more redemption flexibility, while airline points may deliver higher value for certain flight redemptions — but this depends on timing, availability, and program rules.

Types of credit card rewards programs in Australia

Below is an overview of the main categories:

Airline Frequent Flyer Programs

• Often used for flights and travel-related redemptions
• Limited flexibility compared with cash or gift card options
• Value can vary based on seat availability and reward conditions

Bank Rewards Programs
Examples: CommBank Awards, ANZ Rewards

• Flexible redemption options (often including gift cards and merchandise)
• Point-to-dollar value can vary depending on the redemption type

Flexible Membership Programs
Examples: American Express Membership Rewards

• Ability to transfer points to multiple partners (depending on the program)
• May be paired with higher annual fees and eligibility requirements

Retail-focused Rewards

• Useful for gift cards and household purchases
• May have limited travel partners and varying redemption value

How to choose a rewards credit card in Australia

Choosing a credit card with points depends on your spending behaviour and financial habits. Key factors include:

• Annual fee vs the value you realistically expect to redeem
• Interest rate — especially important if you may carry a balance
• Your preferred rewards (travel, cashback, gift cards)
• Bonus point offers and the minimum spend needed to qualify
• Foreign transaction fees if you shop overseas
• Limits on points earning, exclusions, and expiry rules

For more guidance, see:
How to choose a credit card: https://www.credit24.com.au/blog/how-to-choose-a-credit-card
Credit card limit basics: https://www.credit24.com.au/blog/credit-card-limit

Best ways to redeem credit card points

Not all redemptions offer the same value. In many programs, value can vary widely depending on what you redeem for and when.

Redemption types often viewed as higher value can include:

• Flights or flight upgrades (subject to availability and program rules)

Medium value options may include:

• Domestic flights or hotel nights (depending on the program and availability)

Lower value options often include:

• Gift cards
• Merchandise
• Cashback

To redeem points more effectively:

• Plan ahead (especially for travel)
• Compare redemption options inside the rewards portal
• Check whether points transfer rates (if available) are favourable at the time
• Avoid redeeming in ways that offer poor value unless that option best suits your needs

Common pitfalls to avoid with credit card points

Many Australians find rewards less valuable than expected once fees, interest, and spending habits are considered. Common pitfalls include:

• Carrying a balance — interest charges can reduce or outweigh the value of points
• High annual fees
• Points devaluation — programs may change redemption rates over time
• Point expiry due to inactivity or program rules
• Overspending to earn points
• Capped points earning or excluded transaction types
• Blackout dates or limited flight availability for rewards redemptions

If you want to understand how interest can affect balances, read:
How does credit card interest work? https://www.credit24.com.au/blog/how-does-credit-card-interest-work

Credit card points vs. other reward options

Points vs Cashback Cards

• Cashback offers a simpler value proposition because the benefit is more direct
• Points can offer strong value in some cases, but often require planning and careful redemption choices

Points vs Store Loyalty Programs

• Store programs can be easier to use but may be limited to one retailer or group
• Credit card points can be more flexible, depending on the program

Points vs Buy Now Pay Later Rewards

• Some BNPL providers offer rewards, but the value and conditions vary
• It’s still important to understand fees, charges, and repayment schedules

Points vs Personal Loans

A personal loan may be worth considering when:

• You want a fixed repayment plan
• You want to avoid ongoing credit card fees and revolving debt
• You’re looking for a structured way to manage higher-interest credit card balances

To compare options, see:
Personal loan vs credit card: https://credit24.com.au/blog/personal-loan-vs-credit-card/
Personal loan to pay off credit card: https://www.credit24.com.au/blog/personal-loan-to-pay-off-credit-card
How to transfer money from a credit card to a bank account: https://www.credit24.com.au/blog/how-to-transfer-money-from-credit-card-to-bank-account
Credit card refinance: https://www.credit24.com.au/blog/credit-card-refinance

Are credit card rewards worth it?

Credit card rewards can be worthwhile for some people, but it usually depends on whether you can:

• Pay the balance in full by the due date
• Get more value from rewards than you pay in annual fees and other charges
• Redeem points in ways that suit your goals
• Avoid spending more than you otherwise would just to earn points

If you often carry a balance, the cost of interest and fees may reduce the overall benefit of points.

When Credit24 might be a better option

For some customers, a personal loan can be a simpler alternative to managing costs through a rewards card — especially if you want clearer repayments and a structured plan.

Credit24 personal loans offer:

• Fixed repayments
• Clear, transparent fees (as set out in the loan contract)
• No annual fees or rewards structures to manage
• A structured approach that may help some people avoid ongoing revolving credit card debt

If you’re exploring ways to manage existing credit card balances, you can also read:
Credit card consolidation loan: https://www.credit24.com.au/credit-card-consolidation-loan

Apply now: https://www.credit24.com.au/au/apply/login

Disclaimer

IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is general in nature and does not consider your objectives, financial situation, or needs. Lending criteria, fees, and charges apply. For product details, eligibility requirements, and full terms and conditions, visit www.credit24.com.au.