MEDIA RELEASE
26 July 2010
Unrewarding! Australia’s credit card rewards programs fail
consumers
New consumer tool reveals best and worst rewards credit cards
For thousands of Australians, the promise of a free flight, shopping or cash rewards makes
choosing a rewards credit card over a traditional credit card seem like a good choice. However,
fresh new research by financial comparison website, mozo.com.au, reveals that the large majority
of rewards credit card programs are failing to offer people real value from their rewards in a year.
Mozo’s Rewards Revealer
, launched today, is the first tool of its kind which takes into account a
person’s individual spending habits and preferred rewards type (flights, cash back or shopping
vouchers) and provides them with ranked results which detail the best and worst rewards credit
cards for their situation.
Rohan Gamble, managing director of mozo.com.au said: “Given that rewards credit cards usually
attract higher interest rates and annual fees we really felt that it was time someone cracked the
‘rewards code’ and made it easy for Australians to see what they’re really getting for their money.”
“And we’re absolutely gobsmacked by the results,” added Gamble. “We knew there were going to
be some rotten deals out there, but we were shocked to discover that for the average cardholder
rewards cards on the whole just aren’t worth chasing.”
“There are even some cards where you are worse off holding the card because you are actually
charged more in fees than they return in value. That doesn’t sound very rewarding to me!”
Mozo’s analysis highlights that your annual spend level makes a massive difference when
selecting a rewards credit card. While this may seem like common sense (the more you spend
the more points you earn), the analysis revealed that there are good and bad cards at each spend
threshold and that no one credit card is best, so it’s important to find the right card for your
personal situation.
Mozo – Australia’s best and worst rewards credit cards
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Using the average annual credit card spend of $14,000 (based on RBA data*), Mozo used its
Rewards Revealer
to see which rewards cards offer Australians real rewards value. The results
are eye opening, with only two of the 76 cards available (after taking into account annual card
fees) offering rewards over $100 in net value per year. And even worse, 15 cards came out
negative, with annual fees overriding the rewards value.
The top ranking rewards cards (not including Platinum cards) based on the average annual credit
card spend are:
American Express Blue Sky Credit Card
Myer Visa Card
Jetstar Mastercard
For people who spend over $50,000 a year on their credit card, rewards cards are more
appealing, with the big banks offering some of the best rewards programs. However, even at this
spend level the difference in net rewards value is over $1000 a year so it is important to shop
around. The top performers (including platinum cards) are:
Citi Emirates Platinum
Westpac Singapore Airlines Platinum
Jetstar Platinum Mastercard
“This analysis really highlights that for the average Australian rewards cards just don’t make
much sense. Our advice to everyone is to look at their annual spend level and shop around for a
card that will deliver real value for them, not the illusion of value.”
Mozo’s Rewards Revealer
compares 99 rewards cards from banks, credit unions, retailers and
airlines and covers all card types: Visa, Mastercard and American Express. The tool can be
accessed at: mozo.com.au/credit-cards/rewards
-ENDS-
* Average annual purchases spend per credit card account with an interest-free period (excluding charge or cards issued to business),
according to RBA statistics, from June 2009 - May 2010.
For more information, or to arrange an interview, please contact:
Kylie Moss,
Mozo Communications Director
P (02) 9037 4372 M 0430 302 424
E kylie.moss@mozo.com.au
About Mozo.com.au
Mozo.com.au
is an online comparison service that launched in October 2008 to help Australians navigate
the money maze. Mozo lets consumers easily compare the interest rates, fees and features of hundreds
Mozo – Australia’s best and worst rewards credit cards
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of different bank accounts, credit cards, loans and savings products. Mozo is independently owned and
our product data is 100 per cent objective.
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