With more and more consumers defaulting on their credit card payments brought about by the credit crunch of the recent years, as well as, the impending approval of the new credit card regulations, credit card companies are reevaluating the ways of maximizing their revenues. As a consequence, one of the most likely casualties is the rewards card and the perks it offers.
The new regulations that are set to go into effect at the end of February 2010 will place restrictions on the revenue making schemes of banks and issuers. Some of these regulations restrict interest rate increases, provide for stricter requirements on notifications for any changes in credit card terms, and place limitations on over-the-limit fees. Since the revenues are most likely going to take a dip, banks and issuers will devise ways to cut back on expenses so they can maximize profits.
It comes as no surprise then that credit card issuers are making big cutbacks on their reward schemes. In fact, there are quite a number of noticeable changes that issuers are putting into effect on their rewards cards and rewards systems. Some of these include increasing the number of rewards points to almost double the original before a pay out is made or a longer period of purchases is required before a number of points are rewarded.
Other notable changes implemented by some credit card companies also include the following: increasing the number of miles to earn points, eliminating sign up reward points, and reducing reward points for purchases made.
If you are looking for a good rewards card, keep in mind it is becoming more difficult to find one. Not only is it important to make a credit card comparison, it is also vital that you pay close attention to the terms and conditions of these rewards programs. And, after you get a card during this period of uncertainty in the credit market, you may be better off redeeming your rewards points sooner rather than later.
