Reward programs are meant to encourage bigger spending. Simply spending for the sake of earning points can be risky. But if cardholders use their rewards credit card responsibly, you could enjoy significant benefits.
Big spenders who like to flash their plastic could also benefit from a rewards credit card. In this case, you're not altering your behaviour in any way. Instead, you're simply capitalising on your regular spending by earning rewards.
If you regularly shop at certain outlets or supermarkets, you may want to consider a store credit card. If you were going to spend the same amount of money there anyway, then a rewards credit card could also earn you free extras, provided you pay the balance off in full and on time. You may also enjoy membership rewards, such as flybuys rewards in Coles Group retailers.
Finally, overseas adventurers can benefit from frequent flyer credit cards or travel credit cards. Maybe you frequently hop on planes for business trips, or just have the travel itch. These cards may let you use points for plane tickets, airport lounge access/lounge passes, and offer overseas travel insurance.
Rewards credit cards may not be suitable for everyone. Maybe you’re on a budget and don’t always pay off your credit card in full or on time. Maybe you aren't a big traveller. Maybe you prefer to pay for your shopping through other means. In cases like these, a reward credit card may not be ideal for you.
Rewards credit cards typically don't come with low fees or low rates, as these costs help to pay for these programs. You may end up paying fees, getting hit with high interest charges and getting into debt for a rewards program you don't really need.