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Here you can learn how these supermarket credit cards work, the features you can expect and the benefits you should consider when choosing the right card for you.
Australian supermarkets, such as Woolworths and Coles, have partnered with banks to offer these credit card products. Just like a regular card, these products come with a credit limit which you can use to make transactions on a line of credit. If you don’t pay your balance in full by the end of the statement period, any remaining balances will collect the purchase interest rate. Depending on the card, you could also pay an annual fee, which generally ranges from $0 to $100.
These cards are also regularly linked with loyalty programs such as Coles Flybuys or Everyday Rewards. This means you can earn points with the partnered rewards program for every $1 you spend on eligible transactions. You can usually redeem these points for money off your shop at the checkout, exchange them for partnered frequent flyer points and other rewards including travel, gift cards and merchandise.
You can also find credit cards that will reward your grocery shop beyond supermarket credit cards. Some rewards credit cards offer more points per $1 when you spend with major supermarkets. For example, the American Express Platinum Edge credit card earns up to 3 points per $1 spent on purchases at major supermarkets (including Coles and Woolworths).
These cards could be useful if you want to reward your grocery spend but don’t necessarily want to use a supermarket credit card.
When you’re deciding which supermarket credit card is right for you, consider the following factors:
To give you an idea of how you can compare the above factors between banks, we’ve looked at details for Coles and Woolworths credit cards below.
Card | Annual fee | Purchase rate | Rewards earn rate | Extra features |
---|---|---|---|---|
Woolworths Everyday Platinum credit card | $0 for the first year and $49 p.a. thereafter | 19.99% p.a. | Earn 3 Everyday Rewards points for every dollar spent on Woolworths Select and Woolworths brand range of products. Earn 2 points for every dollar spent on items you buy at Woolworths supermarkets, BWS, Dan Murphy’s and more. For all other eligible purchases, earn 1 point for every dollar you spend. |
|
Woolworths Qantas Platinum credit card | $99 for the first year and then $169 p.a. onwards | 20.49% p.a. | 1 Flybuys point per $1 spent on eligible purchases |
|
Coles No Annual Fee Mastercard | $0 | 19.99% | Earn Flybuys 0.5 points per $1 spent on eligible purchases. |
|
Coles Rewards Mastercard | $99 | 19.99% p.a. | 2 Flybuys points per $1 spent on eligible purchases up to $3,000 per statement period (1 point per $1 thereafter) |
|
Coles Low Rate Mastercard | $58 | 12.99% p.a. | 0.5 Flybuys points for every $1 spent at Coles supermarkets |
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As you can see, both Woolworths and Coles offer credit cards with low fees or interest rates, as well as cards that offer more points per $1 spent and premium features. Consider how you’re going to use the card, your points goals and what you can afford to determine which one is right for you.
Supermarket credit cards can be a great way to reward yourself every time you’re buying groceries at the checkout. However, as there are many types of rewards credit cards on the market, make sure to compare your options before you decide on a card.
Picture: Getty