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How to Optimize Obtaining Your Credit Card Rewards

Monday, April 12, 2010 by Doron F. Eghbali

Since the enactment of Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) on February 22, 2010, credit card companies have been forced to make up for their loss of business by cutting costs and rewards. As such, it behooves us to understand credit card rewards before we lose what we have accumulated or obtain cards that do not suit our business and personal needs.

CASH REWARD IS THE BEST KIND OF REWARD

Indeed, obtain the cash rewards whenever you can. The reasons are:

Redemption Fees Required for Airline Tickets: Some companies now charge redemption fees for airline tickets.
More Points Required for a Fare: Some companies now require more points for a fare and then charge you a fee, as stated previously, to redeem it.
Points Are Worth Less: Established industry standards of a point per penny is no longer valid. In fact, some companies rolled out $50 gift cards for 6,000 points which amount to an "overprice" of $10.

CAVEATS

Be Mindful of Changing Rewards Terms: Today's reward offers may not be available tomorrow. Or there might be changes in your current reward terms. For example, American Express slashed the cash back rebate on its Blue Cash card from 1.5 to 1.25 last year. In addition, the Chase's Freedom card no longer offers 3% rebates for customers' top spending categories. Thus, do not wait to cash in on rewards.
Be Mindful of Cards That Suit Your Spending Habits: This is very important to intelligently select cards that suit your spending habits. In fact, BillShrink.com can help you match reward programs to your spending habits.

DISCLAIMER

Law Advocate Group, LLP or its Partner Doron Eghbali have no affiliations or receive no monetary rewards or contributions from the services discussed in this blog.

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DORON EGHBALI is a Partner at the Beverly Hills Offices of Law Advocate Group, LLP. He Primarily Practices Business , Rea l Estate and Ent ertainment Law. He Can Be Reached at: 310-651-3065. For More Information, Please, Visit: HERE.

Posted at 11:18 AM

Topic: Business Law