Co-author: TJ Ryan
There are more credit cards being used in Australia than ever before, with more than 16.5 million credit cards in circulation as at July 2016. And sadly, Reserve Bank statistics show that Australians are currently paying interest on a total of just over $32 billion of credit card debt, with an average debt of around $2,000 per card. This is roughly how much credit card interest, on average, we pay!
If you’re a savvy spender though, and pay your credit card religiously each month, a rewards credit card might be an attractive option – we all like being rewarded!
What is a rewards credit card?
A credit card overall is a form of unsecured personal loan that gives the cardholder access to a revolving line of credit. That revolving line of credit is accessed most usually via a small plastic card – hence, the credit card.
A rewards credit card gives you extra benefits that you earn according to how much money you spend on your credit card. The bank converts your spending into rewards points, and when you redeem those points, the bank converts them into rewards for you.
There are four main types of rewards, and they are:
For more information about the different types of credit card rewards, and what they offer, click here.
With more than 16 million credit cards in Australian wallets in 2016, we could be earning a big bundle of rewards if we use those cards responsibly (and if we spend enough to make it worthwhile).