bcu Rewards Credit Card

Pauline Hatch

Pauline is a personal finance expert at CreditCard.com.au, with 9 years in money, budgeting and property reporting under her belt. Ask Pauline a Question about this card.

The bcu Rewards Credit Card

Making it super easy to earn cashback on everyday card spending, the bcu Rewards Credit Card is a great alternative to standard rewards cards. With a low purchase rate and a reasonable annual fee, the card keeps its features fairly simple, concentrating on those cashback rewards, while providing access to credit.

What we love...

There’s no denying earning rewards can be pretty exciting. It feels like you are getting something for nothing, like you are getting a little treat simply for spending on your credit card. But, rewards programs can be complicated. Sometimes it can be hard to work out whether you are actually getting value for money.

Which is where the bcu Rewards Credit Card comes in. Unlike standard rewards cards that earn points that are then redeemed for rewards, this card earns cashback, which can be spent in any way the cardholder pleases. There are no tiered earning structures to remember, and cardholders don’t have to pour over rewards options, trying to figure out how to redeem their points to get the best value from them.

Instead, cardholders simply earn 0.66% back on every dollar they spend on eligible purchases. So, for every $1,000 you spend on the card, you will get $6.60 back. In case you were wondering, eligible purchases are most purchases made on the card, apart from cash advances, BPay, fees, charges and enforcement expenses, interest, balance transfers or transactions for business purposes.

When you apply for this card, bcu will automatically open a Rewards Savings Account in your name. Each month, the cashback you have earned will be automatically credited to this account. You can then spend it as you like. How much value does this offer? You would need to spend $13,500 on your card each year to cover the annual fee, but from there, all points are yours. Take note, the maximum cashback you can earn annually is $500.

In terms of costs, the card has a low rate for a rewards card. But, carrying a balance and paying any interest on it – even if it is at a low rate – will make it very hard to enjoy real value on the cashback rewards you receive. Instead, it’s better to clear your balance by the due date, and then you can enjoy the card’s interest-free feature, with up to 52 days interest-free on purchases.

What’s not so great...

The main sticking point on this card is its application process. While most providers now offer online or over-the-phone credit card applications, bcu requires new cardholders to visit a branch to apply. As long as you live near a branch, this could be easy enough, but with branches focussed along the Queensland and NSW coast, it’s not going to be possible for all applicants.

Why should you choose this card?

If you clear your balance each month and want to earn something back on your credit card spending, the bcu Rewards Credit Card could offer real value. Cardholders who don’t have time for complex rewards programs, or who simply want to earn cashback to spend as they like can enjoy an easy way to get something back on their spending day-to-day.

Unlike some rewards cards, this one offers a low minimum credit limit of $500, making it a good choice for cardholders who want to reduce their temptation to overspend. And of course, as a credit card, it provides all the access and security features you would expect, including worldwide acceptance, contactless payments via Visa payWave, and security via Verified by Visa.

Overall Rating

An everyday rewards card that offers cashback on card spending, the bcu Rewards Credit Card is a basic offering with a low purchase rate and reasonable annual fee.