Are supermarket credit cards worth having?

Published on December 1st, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Shopping for groceries shouldn’t be an anxiety inducing practice; from seeing those green digits taunt you as they flash how much you should pay, right down to shoving your change into your wallet because it feels like the person behinds you is rushing you.

Shopping for groceries shouldn’t be an anxiety inducing practice; from seeing those green digits taunt you as they flash how much you should pay, right down to shoving your change into your wallet because it feels like the person behinds you is rushing you.

Supermarkets have come up with credit cards that work just like any other credit card. However, they differ in the sense that they boast of giving you back rewards that put extra cash back into your pocket. Recent credit and debit card statistics released by Finder shows that there are over 16,717,777 of credit cards in Australia already in circulation to help people with their 99 problems, a supermarket credit card won’t be one. Here are three reasons why:

Talk about getting low

With its low interest rates and low annual fees, a supermarket card comes in handy to help you during those tight squeezes in the moth. A good supermarket credit card can save you from 1% right up to 6% ( https://www.thesimpledollar.com/four-best-credit-cards-for-grocery-shopping/  ) when it comes to your grocery bill. There are a variety of cards to choose from like the Australian Coles low rate Master card that has an interest rate of 12.99% on purchases with the first 62 days free of interest (https://www.canstar.com.au/credit-cards/supermarket-credit-cards-good/ ).  

Get rewarded when you spend

This could be every shoppers dream come true. Both Coles and Woolworths in Australia offer good value reward programs that will aid you in times of need. The type of reward schemes linked with your card can make you go further by redeeming points that you can later use at associate stores. For example, Coles No Annual fee Mastercard can let you earn flybuys points per $1 spent on everywhere you spend. The only catch is that these need to be eligible purchases and they expire after 36 months. Woolworths also offers rewards, but only on their platinum cards, but unlike Coles their rewards never expire. ( https://www.finder.com.au/coles-no-annual-fee-mastercard ).

No more Queuing

You probably had your hopes raised at the vision of avoiding long queues at the shop. Perhaps this will become a reality soon, but the queues we are talking about are bank queues. Coles has smart bank cards that can be linked with smart phones to sort out your credit card bill on your phone.

It is important to read the fine print of these credit cards. There are some transactions that are ineligible transactions, which means you cannot gain points. Sometimes you will have to separately apply for reward programmes despite it being advertised as being under one card. Ask if your card automatically signs you up to all programs or not. The decision lies with you on whether you need a supermarket credit card or not depending on your needs and spending habits.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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