Credit card companies know exactly how to market to our wishes. They know we love our points and rewards and we’re falling for their offers blindly. The issue is we become complacent with the points programs.

The credit card rewards system goes a little something like this: the more money you spend, the more points you rack up. Once you hit a certain threshold, you can trade in those points for some kind of “reward”—usually appliances or flights.

But the value of these rewards is questionable to say the least. Unsurprisingly, new analysis by financial comparison website RateCity has found some of the worst returns on cards are offered by the biggest banks. In some cases providers give customers just one quarter of a point for every dollar spent.


To be rewarded a $200 SMEG kettle some of the worst value cards include:

• ANZ’s Frequent Flyer — spend required $133,470.
• Westpac’s Altitude Qantas — spend required $77,860.
• NAB Qantas Rewards — spend required $74,520.
• NAB Rewards Classic — spend required $55,280.
• Commbank Awards — spend required $51,900.

Guru prediction — get ready for reward point expiration dates. As the banks try and retain profits and dividends following the Royal Commission, I predict they'll introduce expiration rules for credit card rewards. Some points will even expire after 12-18 months, which barely gives you enough time to even rack up a significant amount!

Guru tip — unless you’re a big spender, many of the rewards credit cards on offer just aren’t worth it. That means it's time to use your points before they become completely worthless.