Supermarket credit cards and rewards in Australia: are they worth it?

Supermarket co-branded credit cards exist to increase loyalty

Both Woolworths (through Everyday Money) and Coles (through their financial services partnerships) have offered credit cards that earn additional loyalty points or offer specific benefits when you shop at their stores. The pitch is that you earn rewards faster than with a standard bank card.

Whether this is worth having depends on how you manage credit, what the card actually costs, and how valuable the rewards are to you.

This is general information, not financial product advice. Credit products are regulated — read the current product disclosure statement and consider your own financial situation before applying for any credit card.

The basic structure

Supermarket credit cards typically earn a higher points rate when you spend at the affiliated supermarket, and a lower rate on other spending. They may also offer bonus points on joining or spending thresholds, and some include benefits like free home delivery or discounts on specific shopping days.

Annual fees vary. Some cards have no annual fee; others charge a fee that needs to be offset by the value of rewards earned.

How to assess whether the rewards are worth it

The key calculation: estimate how much you spend at the affiliated supermarket per year, multiply by the earn rate, and work out the dollar value of the points you would accumulate. Compare that against the annual fee and any interest you might pay.

Points values depend on how you redeem them. Redeeming for statement credits or grocery vouchers is typically the most straightforward comparison — it gives you a dollar figure to weigh against the fee.

Our loyalty programs guide covers how Everyday Rewards and Flybuys points work in general.

The credit risk to weigh carefully

Credit cards are only cost-effective if you pay the balance in full every month. Interest on an unpaid grocery balance erases any reward value quickly. If there is any chance of carrying a balance, the interest rate is more important than the rewards structure.

Alternative approaches that do not require a new credit card

Consistent use of your existing debit or bank card alongside a free loyalty program card at the checkout earns member-only prices without credit exposure. For many households, this delivers more reliable value than the incremental benefit of a co-branded credit product.

For comparing the actual grocery prices regardless of which card you use, run a search on TrolleyChecker to see where your regular items are cheapest this week — the shelf price difference between chains on a high-spend item often exceeds what a points earn rate returns.