With all this mess, and recent credit card whoas, I have anticipated reduced rewards and replaced my credit card already.

Anyway, so yes, I have a replacement card. Plus my tried and true State Farm card. 1% rewards, no fees. As is my CU card, now. I assumed perhaps better customer service at CU. Will see. I like to always have 2 cards. It is not always that we have had cash rewards. I still feel lucky to have 1% back/no fees. Wasn't always a given.

This was all in preparation, of talks of annual fees and evaporating rewards. Though what pushed me to the edge was when my State Farm card really pissed me off when it took forever to remove a fraudulent charge. Chase did the same, but the $1 charge wasn't worth losing $750 in annual rewards. But the writing has been on the wall as far as rewards.

Anyway, this is why I stay tuned in to the financial community. Heads up like this (read comments):

http://www.mymoneyblog.com/archives/2009/10/chase-freedom-cr...

Talk that Chase no longer offers $250 redemptions for $200 in points. (Phew, I JUST redeemed my $250 last month. I was nervous I might not be able to).

Someone mentioned they now charge an annual fee, but that you can call a number to decline this "upgrade." (ETA: Oh yeah, to decline any credit card changes usually means you agree to cancel the card. Be careful with this option if you need the credit line!!!)

Interestingly, I never got any such notice. I wondered if I missed an e-mail or online notice, so I perused my online account. No notices. Nothing. I can still redeem $250. I read all my online disclosures and they were unchanged.

I will keep an eye on it. But either they let me retain my original benefits, or I am closing the account.

Part of me wonders if they profile their customers a bit and realize this, and that is why they let me be. My gut says I will be getting a notice in the mail any day though. They have a lot of customers.

Glad I am prepared.

My effective interest rate on purchases has been about 3%. It will settle to 1.5%-ish if I can no longer wait to $200 to redeem $250. I guess it depends on the annual fee and how it compared to the rewards we claim above 1%. If we still come out ahead, it will be worth keeping.

I've never had a problem closing cards and retaining a high credit score. But I usually keep my cards for a long time. These days, I have only had the Chase card like 3 years? If that? I do worry a bit about short term credit hit. Not that much, but a little. (Compounded by my credit card arbitrage last year - I had opened and closed 2 cards). This is another reason why I am glad to switch to a CU card. I assume I will have it for a long while! I believe my State Farm card is 6 years, and I may revert to using that one more too. I was thinking of canceling it just last year. When they pissed me off. Maybe it will be good to hold on. Maybe using it more will be a good thing to - so they don't just cancel it. (For now it's a "backup card" that I never use).

In the past I always hated closing cards I Was intent on closing, because they would BEG you to stay. Funny enough, no begging in the year 2008! OR 2009! I closed quite a few cards. I am kind of curious if they will have any interest in keeping me as a customer. If I can haggle at all, for better rewards. (Pre-2008, I certainly could). But, I can't say I won't delight in no longer giving Chase my business, either. It's been kind of "too good to pass up." Making 3% on all my purchases??? Better than my savings accounts. But as that era passes, I am happy to drop them like a hot potato. & I will take delight in it.

ETA: They are converting to plan vanilla 1% cash back. I just read the clarification. Not worth any fees, when I already get that everywhere else.