Are credit card loyalty schemes really worth it?

A shopper has to spend almost $20,000 on a credit card to earn a $100 voucher, according to an analysis by ratings agency Canstar.
The $20,000 figure was significantly up from the $12,000 expenditure required to earn a $100 voucher 10 years ago under credit card loyalty schemes.
Canstar said shoppers should compare the benefits of loyalty credit cards with the cost of annual fees and interest charges.
For average Australians – who spend just $18,500 a year on credit cards – a loyalty card would not be worth it as they would not qualify for the $100 voucher.
Most loyalty schemes came with annual fees of $69, which meant there was not much cream left after the annual fee was paid. Canstar analyst Adam Beu said once interest rates of up to 20 per cent were included, rewards cards were ‘redundant’ for most average shoppers.
Some schemes had fees of $300 a year.
Canstar said shoppers had to spend $60,000 a year on a loyalty credit card to get a voucher with $285.
That meant that rewards cars only made sense if people were disciplined and paid the full bill each month.

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