Some banks are trimming credit-card reward programs in the wake of the financial crisis, according to CNN personal finance blogger Gerri Willis. To ensure that you aren’t surprised when redeeming future rewards, she suggests the following:
Know what’s happening. Credit-card companies are scaling back on rewards programs in a variety of ways, including new spending floors, higher point requirements for travel perks and shorter expiration dates. Since rewards programs are complicated, it’s fairly easy for a card issuer to change the rules without much notification—make sure you are paying attention.
Don’t stockpile your points. Even if your rewards points don’t have an expiration date, they could lose their value due to future changes to rewards programs—so, now’s not the time to “save up” for a big redemption. You should also keep a close eye on your statements so that you are aware of any points-value changes.
Get the best reward cards. According to Cardratings.com, the best cards to have are:
- Blue cash from American Express (spend $6,500 you get five-percent back on certain purchases)
- Fidelity Retirement Rewards American Express (you get a two-percent rebate but it has to go into a Fidelity account)
- Citibank Premier Pass (you can earn points for every dollar you spend and when you fly)
Source:
CNN: Consumer Tips: Shrinking Rewards Programs
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