by Joseph Kenny | 03/15/09

For years now, customers have touted rewards and loyalty programs as one of the primary reasons that they prefer using credit cards for their shopping needs. Even responsible shoppers who would pay the card off immediately after using it would often make routine purchases on their credit cards for the purpose of accruing airline frequent flier miles or grocery discounts or any number of other incentives.

The thought was that these programs will instill loyalty in the consumer and entice them to use one credit issuer over another. Unfortunately, experts say, this era might be coming to a close at long last.

According to leading debt analysts, borrowers from around the globe are finding their rewards systems being cut at an alarming rate. Many who were saving up thousands of airline miles or "points" have suddenly found themselves with nothing, and worse, no recourse to do anything about it.

Obviously, the present state of the economy has had a major impact upon the ability of credit card issuers to stand behind the lucrative offers they were comfortable making just a few years ago. However, these experts have stated that because of the sweeping changes the recession has imposed, no one is even sure if the rewards program schemes will return after the economy has snapped back into shape.

The reason for this? As credit issuers were forced to adopt a new paradigm of business during the recession, they found themselves servicing a group of "higher class" customers - namely well to do customers who frequently make large purchases but who do not carry a constant charge on their cards at any one time. The consequence of this is that the issuers have less on hand at any given moment, and as such, just simply can't afford to pay for high-end rewards for these types of customers.

If you're using a credit card, you need to ask yourself some hard questions in light of this development. Namely, why are you using a credit card in the first place? If your needs would largely be met by a debit card and the only reason you were sticking around with your credit card is because of the rewards program... is it time to move on? For many, the answer seems to be yes.

However, if you do wish you could continue using your rewards program, there's a few things you can do to ease the transition. First of all, be educated about the specific terms of your program. And don't just take it for granted that the fine print attached is the same as when you read it three years ago. Companies routinely change the details of such programs, and if you aren't watching out for it, you can be taken unawares.

Furthermore, recognize that you've sometimes got to make some noise if you want to be heard. Contact your credit card company if you feel that your rewards program is diminishing. Oftentimes, you'll be able to procure at least some kind of consolation from the company, especially if you've been a good customer.

Lastly, you never know when the hammer might fall. So, while it might be tempting to "save up" points for a huge trip around the world or a single large item like a new television, it's far better to spend it now. Those points might be totally worthless tomorrow.

Ultimately, though, it comes down to what's turning a profit, and one way or the other, it seems the credit card reward program finally is on the way out. Relax, though. A time of change in the credit card company can be the opportune time to invite change into your own life.