With the recent financial crisis and economy climate causing havocs and losses to the credit card issuers, it is inevitable for the rewards credit card to be affected.
Cardholders may observe either a reduction in the miles/points earned on per dollar card purchases, lower percentage of cash rebates or higher points required for redemption.
It won't be a surprised if the issuers decide to charge an annual fee to participate in the rewards program in the near future.
Higher interest rate than a regular credit card
It is common for a rewards credit card to have a higher interest rate than a regular card.
As such, it is wiser to pay your balances in full every month to enjoy the maximum benefits. Otherwise, the the rewards earned could be easily offset or overtaken by the interest charges.
If you intend to carry balances on your card, a low apr/interest rates credit card could be a better choice for you.
Read the fine prints
The rewards scheme always comes with a set of rules and exceptions. It is important to read this terms and conditions before you apply for the credit card.
For example, if your yearly card purchases is low, you may not be able to enjoy the maximum cash rebates offered. A lower percentage rate will be offered instead.
Always ensure the rewards credit card you choose is in accordance to your credit card spending and lifestlye preferences.
By understanding thoroughly how the rewards program works, you'll be able to take the most advantage and find the best way to make the most out of it.