Plastic's Pickup Line

Last year, just over half of the 7.5 billion new-card solicitations sent out involved some sort of rewards offer, up from 44 percent in 2003, according to Comperemedia, a mail-tracking service.

Rising interest rates explain part of the reason for the switch to reward solicitations. As the Federal Reserve Board boosts interest rates from all-time lows, it costs banks more to lend money, making zero- and low-interest teaser rates less attractive business offerings.

But the shift also underscores another reality of the credit card business: "The U.S. is virtually saturated with credit cards," said David Robertson, publisher of the Nilson Report, a newsletter that monitors the credit card industry. The average American household has 11 credit cards, including the general-purpose cards (Visa, MasterCard, American Express and Discover) as well as the private-label type, such as Exxon, Sears and Home Depot, Robertson said.

"That means anybody who's creditworthy and wants to have a card" has not just one but many, Robertson said. And that, he said, also means that reward programs "are not a gimmick but a reality" because each credit card issuer has to figure out what will motivate someone to use its card almost exclusively.

For issuers, that means devising the most compelling reward program that fits a consumer's particular interest and delivering those rewards sooner rather than later, Robertson added.

At Chase, that means offering cards for every stage in a consumer's life:

· The college student can use Amazon.com Platinum Visa, which gives triple points for every dollar spent at Amazon as well as a $25 Amazon gift certificate for every 2,500 points.

· The young professional can turn to Starbucks Card Duetto, which every month automatically credits a cardholder's account with 1 percent of his or her card purchases. The credits can be redeemed for Starbucks coffee. "Depending on how much you spend a month, you may never have to pay for a latte again," said Chase spokesman David Chamberlin.

· The parent with young children can use the Toys R Us Visa, which gives a 4 percent rebate on all purchases made at the national retail chain.

· Seniors can turn to the AARP Rewards Platinum Visa, which offers discounts at many stores and businesses and also issues $25 cash rebates for every 2,500 points earned.

What do all these reward programs mean for consumers? For one thing, they mean consumers should be able to find the best deal for them, Robertson said. "If your issuer is not offering a rewards program [that works for you], then knock on the door and ask them why," he added.

However, consumer advocates warn would-be cardholders to be careful before they sign on to any reward program. There are lots of limitations, such as caps on how many reward points can be earned in a three- or 12-month period. And often these restrictions are not disclosed until the consumer signs up for the program. Similarly, it is hard to find the number of reward points needed to redeem many of the highly touted prizes before signing up and getting a credit card number to access the online site. That makes it hard to figure out the value of many promotions, especially when there may be extra charges, such as shipping and handling for merchandise or transaction fees for airline tickets.