$18K spend required for value from card rewards

Consumers need to spend around A$18,000 a year on their credit cards (on average) to earn rewards that are worth more than the fees they pay for membership of the various rewards programs.

This amount corresponds with the average that consumers actually spend each year on credit cards, which means that a lot of people are getting no benefit from their rewards scheme.

A consumer spending $12,000 a year on a credit card would earn an average cash-back reward of $57. Of 56 credit card reward programs catering to consumers at that level only 21 offered a benefit that was greater than the reward program fee.

Source: Banking Day

Advertisement