Reward cards 'are better suited to high spenders'
Monday 20 August 2012
Article by Mozo
Many frugal Aussies are increasingly keen to lower their levels of credit card debt, but that doesn't mean that people have completely turned their back on their flexible friend.
Although times are hard for a lot of people, having a credit card can be very useful in an emergency.
If you have a sudden unexpected payment to make, having access to plastic can be a real bonus – especially if your bank balance is not looking too clever.
However, selecting the right credit card is not always easy and a new study conducted by Mozo has shown that some reward packages are not worthwhile in the long run, news.com.au reports.
The comparison website looked at 67 reward cards and found that only five offered the user more than $100 in value each year.
Managing director of the organisation Rohan Gamble warned that some companies charge you just for the privilege of having a reward card and it is perhaps not worth having such packages unless you are a frequent card user.
"If you're not a high spender on your credit card just forget rewards cards exist," he was quoted as saying.
Have a question about credit cards? Ask the money gurus at Mozo Answers.