Smart ways to use your credit card

Smart ways to use your rewards credit card this Christmas

Last updated: 17 November 2021

The past two years have been tough for many Aussies. So with the festive season just around the corner, there may be the temptation to forget the budget and celebrate!

This time of the year can make a huge dent to your bank account if you are not managing your finances properly, as we all know the silly season can get out of control easily.

If you have a rewards credit card in your wallet, the holidays may just be the right time to use it. Here are some smart ways to use your rewards credit card to help save money, maximise your rewards and boost the number of gifts you could put under the tree this year.


Pile up your rewards points

With plenty of holiday spending this month, it might be the perfect opportunity to stack up a pile of rewards points! Your rewards credit card could be your holiday shopping companion from grocery runs to gift buying, but be aware of what spends you’re putting on your rewards credit card.

Remember, before you go on a shopping spree, keep an eye on your balance and pay it off in full before the due date so you won’t get stung with interest charges.


Redeem your rewards points for gift cards

Whether it’s crediting back purchases or redeeming for digital gift cards and travel, rewards points can be redeemed in many different ways. While not every rewards credit card lets you redeem points for gift cards, some do.

While gift cards can be the perfect gift for some loved ones on your list, you don’t have to give your gift cards to others to save. If you’d rather, you can use your gift cards to purchase the perfect gift instead.

Read our article on the things you should know about gift cards this holiday season, so you’re not caught out by the fine print.


Redeem your rewards points to travel

Want to book a getaway or just want to be able to make it home in time for the holidays? With the borders swinging open again and cheap flights on offer to some popular holiday destinations, you could use your points for that long-awaited getaway.  Depending on the type of travel rewards card you have, you might be able to redeem points on partner airlines or transfer points to the travel program of your choice.


Redeem & earn rewards points via the portal

Did you know that various rewards credit cards offer their own specific shopping portal, which features just about anything? You just need to log into your credit card account, click over to your card’s rewards portal and you can start redeeming. You could also get big bonus points just by shopping with the partnered vendors through the portal.


It’s important to note that rewards cards aren’t the right choice for everyone and don’t necessarily always equate to free flights or free goods, especially if there’s a high annual fee.


Before you apply for a new credit card, review your credit file and make sure it’s correct!


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