Have your CC Bonuses Changed?

[scfr]

Today we received notice from Discover Card. Our Cashback Bonus Program is being changed. We have an "Open Road" card, so we were getting 5% cashback on gas & auto repair for the first $100 per month. Those were usually the only things we used our Discover card for, and unless we had a repair bill we never went over the $100 per month. The terms are changed, and the Cashback Bonus will now be 2% on gas and restaurant purchases up to $250 per month. Since we are already getting that from another card, today I ordered my Cashback Bonus (available bonus was $25.40 and I was able to redeem $25 so I'm happy about that). We decided to stop using the card, effective immediately, and as soon as the bonus arrives I will be closing the account.

We are not at all unhappy with Discover; in fact, to the contrary, they have provided very good customer service. Twice we received calls from their fraud department when they noticed "suspicious" activity and I appreciated them being so on the ball.

But we decided there's no need to have an "extra" (unnecessary) card when there is no advantage to us to use it.

I'm not surprised or upset by this. When I started hearing about the laws Congress was passing, I realized the days of great bonuses were going to be numbered. If the CC companies are restricted in how much they can make off of the folks who carry a balance, how can they afford to continue to keep paying the bonuses? Obviously they can't.

If you are someone who likes to take maximum advantage of cashback bonuses on your CCs, get ready to read those small-print notices that come in the mail carefully and perhaps rethink which accounts to use.

[kork13]

I have the same card, and also got that notification just the other day. My discover card has already been on my "no use" list, since I've transitioned to using a pair of much better cards. I expect to shut down my discover card within the next year, just because I won't be using it, and have no interest in leaving a card sitting open and unwatched, regardless of the temporary, minor hit to my credit that it will be.

I see this as the beginning, by no means the last of my cards that may change/decrease the rewards programs. As changes come up, I'll have to re-evaluate what I use. But only time will tell.

[TheColonel]

I see this as the beginning, by no means the last of my cards that may change/decrease the rewards programs. As changes come up, I'll have to re-evaluate what I use. But only time will tell.

Hopefully this scaling back will be temporary because as more and more credit card companies cut back on rewards, fewer and fewer people will use them (myself included).

[disneysteve]

My cards haven't changed, though Marriott did make a change to their rewards program earlier this year. That affects all members, not just those with credit cards. They raised the number of points needed for a free room. So I still earn points at the same rate. I just need more points per stay.

[marvholly]

Got the same notice from Discover. Did the calculation and it comes out to the same $$/month IF you spend the $250 (I do NOT).

I will probably go hunting for a different card that pays better on gas/repairs. I think there are several out ther but I plan to wait until all the currently scheduled reforms are in place & the cc companies digest them.

[MonkeyMama]

No, not yet! (I am sure they will - wouldn't be surprised).

[buster7823]

Not to hijack someone's thread but how much does it affect your credit score to close a C.C. account. We have several cards between my wife and I but use only 2 of them. Should we slowly start getting rid of these other ones?

[Snodog]

My cards haven't changed.....yet.

[JourneyCC]

Buster, I've been hearing that many banks/lenders are closing down lines of unused credit. So I don't know if it's in your better interest to close them down yourself or use them every other month and pay in full at the end of the month. It would depend on your situation and whether or not you were going to need a loan for a car/home/etc in the next couple years, as to which decision was best.

[MonkeyMama]

Buster - I always close an old account when I open a new one. Credit score? 800-ish. I do have 10 years of mortgage history. Good credit stays on your history for 10 years (I recently learned). I usually keep my cards a long time though (8 years?) and lately not so long ( 3 years?). Will see if it matters.

BTW, I just saw Chase is charging a fee and reducing rewards for Freedom card. Interestingly, they are slowly changing it for everyone, or it doesn't affect all customers. If they charge me a fee I will close the card, but my account so far seems to be honoring my original terms. I never received a notice. My gut tells me I will get one, eventually.

[LuxLiving]

Our Discover-card recently changed the frequency you can get the cash-back (at least for me) as they raised the amount of bonus you have to have accumulated before actually getting CASH. Now, I believe, if you want to exchange it into a gift-card I think you can still do that at lower levels. Used to be you could get it back in $20 increments and now has gone to $50.

[Ima saver]

My chase card still lets me get $50 checks the same as always. (so far)

[JimInOK]

My Chase Freedom has scaled back its rewards. I used to get 1% on everything (still get that) and then could get 3% on gas, fast food, using it to pay my phone/Directv bill, movies, etc. Now, the 3% deal is only good for 3 categories that change each quarter (and are not categories I spend money on very often). If I read it right, I've got to spend a certain amount in those categories before the extra % kicks in as well.

What I dislike the most, though, is that they had a deal where, if I saved $200 in rewards, they kicked in an extra $50 when I redeemed them for cash. So, if I saved up to $200 in rewards, I got an extra $50 for free. That feature is now gone.

[Joan.of.the.Arch]

DH has a Discover card, but not the Open Road one. I don't know what its "flavor" is, but recently he has been putting all groceries on it. He says he has not had any rewards scale backs yet.

I appreciate the heads-up. We'll keep an eye out.

[Slug]

My PFCU card is still paying 5% on gas, 2% on groceries, and 1.25% on everything else. I use it just for the gas b/c my Schwab Invest First card pays 2% on everything. Neither has sent me a notice. Both have excellent customer service and are discussed further on my blog.