Credit Wallet Pay is an independent credit card comparison platform. We may earn a commission when you click through.
The Truth About Rewards Credit Cards: Myths Debunked
Discover the reality behind common credit card myths, including the misconception that all rewards are created equal. Learn which cards truly offer the best value.
Rewards credit cards come with a lot of hype, but not all of it is true. Let's debunk some of the most common myths about them, so you can make an informed decision on which card fits your spending habits best.
Rates and terms shown are representative. Your actual rate depends on your credit profile and circumstances. This is not financial advice — always read the lender's terms before applying.
Myth 1: All Rewards Cards Are the Same
It's easy to assume that all rewards cards offer similar benefits. However, they differ significantly in terms of earn rates and fees.
Coles Rewards Mastercard
Coles Rewards Mastercard excels for regular Coles shoppers with its 2x Flybuys points. But outside Coles, the earn rate drops significantly, making it less appealing for general use.
Citi Rewards Card
Citi Rewards Card offers flexibility with transferable points and a waived annual fee for the first year, but it requires a $35,000 income, which could limit access for some.
ANZ Rewards Black Credit Card
ANZ Rewards Black is a powerhouse with a high earn rate and a massive welcome bonus, but its hefty $375 fee and high spend requirements make it a choice for high spenders only.
While these cards demonstrate that rewards can vary greatly, let's move on to another common misconception about annual fees.
Myth 2: Annual Fees Are Always Bad
Many assume that annual fees are a waste of money. In reality, paying a fee can be worthwhile if the card's benefits outweigh the cost.
Cards like the ANZ Rewards Black offer substantial rewards and perks that can justify the annual cost. But if fees are a concern, there are no-fee options worth considering.
Myth 3: Higher APR Means Better Rewards
Some believe that cards with higher APRs offer better rewards. While it's true that some high-reward cards have higher interest rates, this is not a rule.
Let's conclude with what actually matters when choosing a rewards card: your spending habits and financial goals. Speaking of savvy choices, our detailed analysis of the Best Rewards Credit Cards for Freelancers in 2026 breaks down options tailored to unique needs.