Many supermarkets offer credit cards with loyalty schemes, but research from Moneynet.co.uk shows that customers could get a better deal elsewhere.
The credit cards tend to have higher interest rates than traditional credit card providers and money saved on loyalty schemes does not balance the figures.
“Supermarket card holders who pile up debt on these credit cards while thinking they are getting a good deal from loyalty schemes such as bonus points or shopping vouchers are shooting themselves in the foot,” said Moneynet chief executive Richard Brown.
He added: “Our advice to anyone not paying off their credit cards every month would be to shop with a low rate credit card, and ditch the supermarket credit card. The loyalty points just don’t stack up.”
The study pointed out, for example, that consumers using the Asda credit card offering would have to spend £1,000 just to get £5 back, while enduring unfavourable interest rates which could hinder those who fail to pay off their full balance each month.