At least one industry analyst is warning that many financial institutions have been changing the terms on their rewards card programs for just this reason.
Rewards cards can be a great money-saving tool for consumers, who may use them to save on purchases such as gas, airline tickets, hotel stays and more.
But now some issuers are subtly changing the rules. Shorter expiration periods, higher fees for redeeming rewards and caps on what can be earned may affect consumers in 2009, according to Megan Bramlette of Auriemma Consulting Group.
“You’re going to see more and more of the trimming down of the benefits that aren’t so popular or aren’t so prestigious,” she told USA Today.
A report in the Wall Street Journal reveals that a number of popular programs are set for changes.
For instance, Citibank’s Thank You Rewards program will eliminate one option for redeeming rewards in the form of airline tickets, which could raise the number of points required.
Meanwhile, American Express cut some double-miles opportunities on its Delta SkyMiles card and Chase’s Freedom card customers will have fewer ways to earn extra cash back.
In this uncertain financial climate, you may want to watch your mail for correspondence from credit card providers, who may be advising you of changes to your rewards card account.
Even though some issuers are cutting back, there are likely to still be some good deals out there if you act fast. So it can pay to do some research on your options and shop around.
Just remember that you will need a very good credit score to qualify for many of these offers.
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