Start With Your Spending, Not the Sign-Up Bonus

Every credit card decision should begin with two numbers: how much you spend each month on card-eligible purchases, and whether you pay the balance in full. The average Australian household puts more than $60,000 a year through credit card-eligible purchases — at that volume, the difference between a well-matched and poorly-matched card is worth $1,500 to $3,000 a year.

Pull up your last three statements and total the spend. That number drives everything that follows.

The Four Card Archetypes

1. Frequent flyer cards

Cards like the Qantas Premier Platinum and Velocity Platinum earn airline points at 1.25 points per dollar. They make sense if you fly at least a couple of times a year and can redeem for flights — see Qantas vs Velocity to pick an ecosystem.

2. Flexible points cards

The ANZ Explorer earns 1.5 points per dollar into a currency that transfers to 8+ airline programs. Best for strategic collectors who want optionality.

3. Cashback cards

The Westpac Platinum Cashback pays a straight 1% uncapped. If you won't learn a loyalty program, take the guaranteed money.

4. No-fee and travel cards

The 28 Degrees Platinum charges no annual fee ever and no foreign transaction fees. It earns nothing — but saves around 3% on every overseas purchase. Almost every traveller should carry one alongside a points card.

Run the Fee-vs-Value Maths

Take the card's annual fee and compare it to the value you'll realistically extract: points earned × your redemption value (our points valuation guide has the numbers), plus benefits you'll actually use like lounge access or travel insurance. If realistic value doesn't beat the fee by a comfortable margin, pick a cheaper card. Our comparison calculator automates this for 12+ cards.

Five Mistakes to Avoid

  • Chasing a bonus you can't unlock. Most bonuses require a minimum spend in the first 90 days. If that's beyond your normal spend, the bonus isn't for you.
  • Carrying a balance on a rewards card. Purchase interest rates near or above 20% p.a. will erase any points value. If you carry balances, read our balance transfer guide instead.
  • Ignoring foreign transaction fees. A 3% fee silently eats the entire earn rate on overseas spend.
  • Paying for benefits you won't use. Lounge access you never visit is worth $0, whatever the brochure says.
  • Applying for several cards at once. Each application is an enquiry on your credit file — see how credit scores work.

The Two-Card Strategy

Many optimisers end up with a pair: a points-earning card for domestic spend, and a no-foreign-fee card for anything international. It's the highest-value simple setup we know of, and both our calculator and the guides above are built to help you assemble it.