“Understanding Credit Card Rewards: How to Avoid Losing Them”

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Understanding Credit Card Rewards: Do They Expire?

At O1ne Mortgage, we prioritize consumer credit and finance education. This post aims to provide an objective view to help you make the best decisions regarding your credit card rewards. For any mortgage service needs, call us at 213-732-3074.

Do Credit Card Rewards Expire?

Credit card rewards can offer significant value, allowing you to get cash back, buy gift cards, book travel, and more. Generally, credit card rewards don’t expire as long as your account remains open and in good standing. However, there are exceptions based on your card issuer and the type of rewards you’re earning. Here’s what you need to know.

Ways You Can Lose Your Credit Card Rewards

Even if your credit card rewards program doesn’t have an expiration policy, there are other ways you can lose or forfeit your rewards:

• Closing Your Account: After closing your account, you may lose access to your rewards balance. Some card issuers may offer a grace period to use unredeemed rewards.
• Missing a Payment: If you don’t pay the minimum amount due, your card issuer may not credit your rewards for that billing cycle. You might get those rewards back after paying your bill and a reinstatement fee.
• Issuer Closes Your Account: If you’re delinquent, violate your cardholder agreement, or your account is inactive, your card issuer may close your account, causing you to forfeit any rewards earned.
• Making a Return: If you return a purchase, the card issuer will typically claw back the reward earned on that purchase.
• Program Cancellation: In rare cases, a card issuer may end its rewards program, but usually, a grace period is provided to redeem earned rewards.

How to Keep Your Credit Card Active

To avoid losing rewards due to account inactivity, here are some tips:

• Make Regular Purchases: Set a reminder to use the card for small purchases every few months and pay it off promptly.
• Set Up Recurring Charges: Consider putting a small recurring charge, like a streaming subscription, on the card. Set up automatic payments to avoid missing due dates.

Note that some card issuers may allow you to reopen an account closed due to inactivity, but you may not get your rewards back.

The Bottom Line

If you’re concerned about losing your credit card rewards, review the program’s terms and conditions to understand how you can forfeit them. Many rewards don’t expire unless your account is closed or becomes delinquent. Keep your accounts active and in good standing to maximize the benefits of your cash back, points, or miles.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you make the best financial decisions.

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