Choice: Credit card loyalty doesn't pay

Nationwide consumer watchdog Choice is warning frugal Aussies to stay away from credit card loyalty schemes after finding that they are only worthwhile for big spenders.

The group found that unless you put $2,000 or more on your credit card every month, you are likely to find that the points take a long time to stack up.

On average, it would take a credit card customer spending $1,000 a month on plastic more than five and a half years to save up the points for a digital camera worth around $500.

"If you are just getting your average purchases with it, it is going to take a long time before you get much worth having," said Choice spokesman Christopher Zinn, speaking to the Age.

The study found that the fees attached to credit card reward schemes will even leave some people in the red over the course of the year.ADNFCR-1761-ID-19083254-ADNFCR