Wednesday, December 31, 2008

Are Credit Card Rewards Going Away?

The letter arrived from one of my credit card companies. This has been a normal occurrence lately, as credit cards I have not used in a while are being cancelled. But, this letter was about my favorite credit card, which I use all of the time. In this case, the credit card was not being cancelled, the rewards were. The letter said “The credit card alliance between Regal Entertainment Group and Chase has come to an end.” The letter did not explain why, but my guess is that credit card companies are trying to save money.

So I looked it up in the news. In India, credit card rewards are going away:

While certain card issuers are withdrawing the basic cash withdrawal facility, or lowering them, others are curtailing the reward programme to keep a check on unsecured loans.

Read more:

But I live in the USA. So what is happening here? It is predicted that there will be less credit card rewards next year.

Reward credit cards may not offer such sweet incentives next year, although the consumers who use them will be better off than most. Reward deals will be "much more confined to people with good credit ratings," says Wyss. Meanwhile, "points aren't going to be worth as much as they were," he says. "Free trips are going to be harder to get."

Read more:

So, I guess I’ll have to look for a new credit reward program. Fortunately, they are still out there.

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