Finding and Keeping the Best Credit Card Rewards
Posted on May 31st, 2010
It used to be a snap, finding the best credit card rewards. For a while, credit cards were fighting amongst themselves to attract business, and virtually every card had some sort of gimmick. In those golden days, finding the best credit card rewards usually meant picking the type of reward you wanted among many good cards.
But with the economy in turmoil and new credit laws emerging, it’s not as easy to find those rewards any longer.
What’s changed?
In a word, money is to blame. Credit card companies are working under three major financial blows right now:
1. A struggling economy, which impacts them as much as anyone else
2. A struggling economy, which means people aren’t spending as much on credit cards (and subsequently, aren’t paying as much in interest) while more frequently defaulting on loans
3. The new CARD Act, which prevents some of the industry’s more underhanded ways of increasing profits.
This triple whammy has left credit card companies scrambling to minimize the loss to their profit margins, and it means a whole lot of services have gone out the window, and a whole lot of new fees will appear.
Are there any rewards to be had?
There are absolutely still great rewards cards around, but they aren’t as easy to find or use as they once were. A few important changes include:
-You’re less likely to find the best credit card rewards if you don’t have a high credit score. Companies are being more cautious about issuing cards in general, so it stands to reason that the better cards — the ones that have always been hard to get — will be even more so now.
-Fewer cards offer rewards. That’s not always a bad thing: it can weed out the ones that aren’t serious about it, leaving you with fewer but better choices.
-You may have to pay an annual fee. If this is the case, look closely at the rewards and determine if they’re really worth the amount you’re going to pay. Sometimes the best credit card rewards will be, but often you’ll find you’d be better off just keeping your money.
New laws make credit card rewards more difficult to find, but they still exist. If you have a high credit rating and use your credit card fairly frequently, the best credit card rewards may still be a great option for you.
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Tags: Card Rewards, Credit Card, Credit Card Rewards, Rewards
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