Are your credit card rewards... rewarding?

With all the new changes coming into effect with credit card laws on February 22, 2010, part of those changes may affect your rewards program. Make sure you read any correspondence you receive from your credit card companies to see what changes are happening specific to your account. Be aware of changing point values, making your reward for spending not quite as lucrative any more. Also, look out for any new fees that may be associated with your rewards program, as credit card companies attempt to boost their profits.

If you are on the prowl for a new card with a good rewards program, beware of gimmicks that give you a chunk of points just for signing up, but then stick you with an annual fee that may be more than the reward you will receive for using it. Annual fees are making a comeback, so see if you can find one that won’t charge that fee. Don’t be afraid to shop around.

If you carry a balance on your card, a rewards card may not be for you. Usually these cards have a higher interest rate, and that interest will probably pay for your “reward”.

If you currently have a rewards card, consider cashing in your points sooner than later to ensure that those points don’t lose value.

Ultimately, the best thing you can do with whatever card you have is to pay your balance off every month. This will make your rewards that much more rewarding!

Nathan Aakre
Family Life Credit Services