Ditch your rewards car, it’s not worth it.

A recent survey by creditcardfinder.com.au has found the rewards from these loyalty cards to be minuscule in comparison to the amount spent achieving them.

The analysis of 41 personal credit cards that collected Qantas of Velocity frequent flyer points revealed a horrifying truth: the comparison looked at how much money need to be spent to be able to redeem a $100 Myers gift card. The analysis, however, did not include bonus points from preferred or international transactions.

“To get any value back from these cards, you need to spend a minimum of $15, 179 per year,” said money exert Michelle Hutchinson from creditcardfinder.com.au. However, most of that will be eaten up by the credit card fee used to make the transactions. An Amplify Classic credit card from St George, Bank SA or Bank of Melbourne, for instance, charges one of the lowest annual fees of $79.

That means that after spending $15,100 you are only a measly $21 ahead.

Tom Godfrey from consumer group Choice says there is much better value for purchasers to simply shop around.

“Big brands like them (loyalty cards) because they lock consumers into their retail networks and they are extremely profitable,” said Mr Godfrey.

“Our research has shown you have to spend a small fortune before you get anything in return. For the average person, chasing ‘rewards’ around town can be a costly and time consuming exercise.”

It’s like the lottery, where you only ever see the winning tickets. People who pay off their credit cards and receive the rewards are very pleased with their shopping acumen. They don’t realise how much more they have paid for their items by shopping within an expensive group of businesses.

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