Rewards in 2009 on Credit Cards

**fishfish** · 10:15 PM

Hey I wouldn't be worried too much about rewards being trimmed right now. What you need to be more concerned with is rate jacking that is going on with them cranking up that APR on your unexpectedly and with leaving you between a rock and a hard place. It happened to me I know!

**fffresh** · 07:46 PM

Below is an article yesterday in a Silicon Valley newspaper about credit card rewards regressing-
http://www.mercurynews.com/nationworld/ci_11541727

Roughly 40 to 4% of credit cards have reward programs compared to 20 to 25% of debit cards having them. Frankly I am surprised that their are that many debit cards with rewards because I do not know of many banks at all which offer points or cashback on debit card purchases.

Taking away rewards is not a wise move. The rewards are the sole reason I put all purchases on credit cards. If you are not carrying a balance you have no incentive to pay with credit cards if you are not being rewarded for doing so.

**Kino** · 09:14 PM

they can go ahead and cut rewards if they like losing customers!

if they were smart they would up the rewards on the credit cards that those with the best credit have and decrease them on bad credit credit cards. THAT is what the smartest and fairest thing to do would be.

**Cucumber** · 10:57 PM

FYI the Chase Freedom card which gave 3% on the top 3 categories of spending announced they are reducing it to only 1% for a chunk of the cardholders.

Delta credit cards from American Express just ended the double miles on gas and groceries. The airline reward credit cards are doing it the worse. It's easier for them to require 30k miles instead of 25k for example than it is for the regular cashback credit cards to so obviously change their cashback percentages.

This sucks.

**KC95** · 01:41 AM

you use to get double miles on capital one credit cards and now you have to spend $1000 a month to get them. that means putting $12,000 or more per year on the card and that is no chump change for sure.

i have the capital one no hassle miles card and i won't be using it anymore.

**fffresh** · 05:43 PM

I received noticed today that double miles on gas and groceries on my American Express Delta Skymiles credit card would no longer be issued.

**amer191** · 06:10 PM

I would bet that credit card use will go down if they take away rewards. There needs to be some kind of incentive for me to use my credit card. I often put purchases on plastic even when I have a wallet full of cash because I don't want to miss out on my cash back. If my card stopped offering rewards/cash back that was at least half way decent I can't see myself using my credit cards as much. I hope they don't do this.

**bozell** · 11:45 PM

if you have a credit card with points like airfare miles or other points you will be s-c-r-e-w-e-d

stick with the cashback because they can't screw you with that. if they say you get 1% cashback they are not going to change that to 0.8% cashback. that would be too obvious. all the 1% cashback cards i think will stay the same. the other credit card categories that give 5% cash back and 3% will be probably cut down to lower amounts. but your 1% cashback will be safe IMO.

**fffresh** · 02:17 PM

If conditions continue to deteriorate I think what we will see is the rewards being taken away from high risk cardholders only. They have no reason to take away rewards from account holders that won't default. The real danger comes from those customers those that appear likely to turn into bad debt. To discourage these cardholders, perhaps we will see cashback and points being stripped from their accounts.

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The solution is to take away rewards from high risk account holders only.