Entrepreneur Megan Gale and Points Expert Steve Hui urge Aussies to be smarter with their credit cards in light of new research
While Australians love to be rewarded for spending, findings released today by American Express reveal that many are uninformed about the credit cards they carry, meaning they could be missing out on a flight to Fiji[i], Bali[ii] or four months of gym membership[iii] every year.
American Express’ Rewards Rethink research[iv] found that over a quarter (27%) of credit card holders with rewards and benefits say they haven’t claimed anything in the past two years with the main reason (35%) being a lack of understanding of what they can be used for. This is perhaps unsurprising given almost half (42%) of respondents admit that they didn’t research the rewards on offer before choosing their credit card – a decision one third (32%) of this group say they regret.
Megan Gale, Australian model, fashion designer, entrepreneur and actress has joined American Express in a campaign to encourage more Australians to be savvier in how they choose and use the cards in their wallets.
“As a busy working mum, juggling so many things, it’s easy not to pay attention to the things you’re using every day, such as your credit card,” said Gale. “With some good programs and offers out there, you really need to do your research as you could be missing out on some great benefits.”
“I’m a huge fan of getting a little more from my everyday spend – from groceries, to filling up the car with petrol, it all adds up. You never know, with savvy management of your credit card, your daily coffee fix might just pay for your gym membership or get you to that summer holiday faster!” Gale continued.
Julie Nestor, Vice President Customer Marketing and Experiences for American Express Australia & New Zealand, said: “Australian credit card holders on average have just an estimated 7,500 reward points sitting on their primary credit card. On average, our American Express Card Members are redeeming 80,000 points per year, enough reward points for a Premium Economy flight from Australia to LA, highlighting that with the right credit card, your points can take you further.”
Now is the time for Australians to take a close look at their credit card, according to Steve Hui, CEO of iFLYflat – The Points Whisperer, which educates consumers and business owners how to maximise their credit card rewards and spend them wisely.
Hui said: “Due to new interchange reforms introduced by the Reserve Bank of Australia, the credit card rewards landscape will change and many consumers will start seeing their rewards programs become even less rewarding. Now is the perfect time to reassess what cards you are using.”
“We’re all educated on the idea of earning points, yet where the most value lies is in the items you can purchase or the distance you can travel when you go to use your credit card points. Make sure you understand the overall value of the card, as not all rewards programs are created equal,” Hui added.
Card holders who researched their credit card offering thoroughly earn, on average, 66 per cent more reward points than those who didn’t. Australians with a higher annual household income ($100,000 or more) are more likely to have researched the rewards offered by their primary card, as well as younger Australians (18-39 years) and households with kids under 18 years.