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Date Published : Monday, March 03, 2008
Rewards offered on credit cards by some of the major banks and financial institutions are better than a year ago, according to a new report.
Many of the cards on offer have improved their rewards schemes to give better value for money, a study by Cannex found.
However, for the casual spender, rewards credit cards are not worth the extra effort and higher interest rates which come with them, the survey also revealed.
According to Cannex, the average reward based credit card will give back $100 in free goods, services and discounts only if the consumer spends $13,500 on their plastic friends.
Despite this, the firm - which studied more than 100 credit cards currently on the market in Australia - found that those consumers who do not spend thousands of dollars each year on their cards do not get a good deal. Rewards on credit cards equate to 74c per $100 spent.
Cannex financial analyst Frank Lopez said: "Getting the best value out of a rewards card is entirely dependent on your yearly spend and the type of reward you prefer, whether it's shopping vouchers, frequent flyer points or instant rewards.
"For those chasing air miles, the card to keep on the radar is one that partners the AMEX Blue Sky programme, which requires a spend of only $8,000 compared to $18,630 for an average Sydney to Melbourne flight."
Cannex researches and compares over 20,000 financial products in Australia and New Zealand each year.
Compare your current credit card rates with Australia's top providers.
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