Just Credit

Have you got a rewards credit card?

Yes? Ok…next question.

Is your rewards card the right one for your spending habits and financial needs?

Not all rewards cards are created equally, so while some have excellent rewards programs, others can actually be a bit of a rip off.

Take for example the ANZ Balance Visa. On this card you get cash back rewards for your repayments rather than your expenses. You can compare this to the Bendigo Red credit card which requires you to spend over $8000 more to get just a $50 reward.

So what do need to know?

Well if you’ve got one already you’ll no doubt be able to find out the information pretty easily from your bank. But if you’re searching for a new card, make sure you check what the rewards earn rate is (how much money you need to spend to earn a rewards point), and also the rewards redemption rate (how many points you need to redeem to get a certain reward).

Usually credit card providers will quite happily offer up the earn rate in their information pack as a way to entice you into getting their card. However, this is not the case with the redemption rate, which usually requires quite a bit of searching in order to get wind of it.

Why?

Because it’s the telling factor into the real value of your rewards card. So if you’re a big spender with your rewards card or there are a number of other features that are of great value to you (and the rewards are just an added bonus) then the rewards earn and redemption rates are maybe not so crucial to your finances.

However if the opposite is the case and you really want a rewards card then checking the rates mentioned above is vital for your financial well being.

There is another element to this issue though, and that is when you take into account such rewards programs as the one available at St George.

The reason this credit card rewards program gets a special mention is because rather than spending money and earning points for a reward, you actually get instant discounts at a huge range of retailers around Australia when you use your St George credit card.

So the benefits you receive are instantly received rather than having to wait until you’ve earned enough points for the rewards that you want.

The Credit Card Guide is the best credit card review website for Australian credit card consumers, where you’ll find an online review service that offers in-depth honest reviews that take the hard work and stress out of searching for the card that is right for you. Check it out now at http://www.thecreditcardguide.com.au.