Credit Cards Cutting Reward Programs

Here’s another way credit cards are abusing customers — reducing the value of their reward programs.

The ability to earn points or miles towards everything from cash rebates to airline tickets is often touted in credit card ads.

But the terms of how those points can be earned and redeemed can change at any time. With credit cards on a rate-raising, fee-charging rampage it’s no surprise that they’re devaluing their reward programs, too.

Just look at some of the changes Citi and its partners are making.

The Citi Hilton HHonors Visa, for example, allows holders to earn points toward free hotel rooms. But starting next year you’ll need at least 12,500 points, up from 10,000 points, to get one.

The Citi mtvU Visa card allows students to earn points that can be converted into payments toward student loans. But instead of earning $100 for every 10,000 points, you’ll now need 12,700

The Citi Home Depot Rewards MasterCard is being dropped altogether. The cards won’t be honored after Saturday, Oct. 31, and reward points not redeemed by Jan. 31, 2010 will be wiped out.

That’s the ultimate devaluation for those contractors and do-it-yourself types who were lured into this reward card, eh?

Let us know if you’re seeing any of favorite reward programs making it harder for you to earn and redeem points and miles.