Introduction

Credit card rewards can provide significant value, allowing you to earn cash back, book travel, and more. However, understanding how to manage these rewards effectively is crucial to ensure you don’t lose them. At O1ne Mortgage, we prioritize your financial well-being and offer expert advice to help you make the best decisions. For any mortgage service needs, call us at 213-732-3074.

Do Credit Card Rewards Expire?

In most cases, credit card rewards do not 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 earn. For instance, airline and hotel credit card points may expire after 12 to 24 months, though the clock may reset each time you earn or redeem points or miles.

Ways You Can Lose Your Credit Card Rewards

Even if your rewards don’t have an expiration date, there are several ways you can lose them:

• Closing Your Account: After closing your account, you may lose access to your rewards balance. Some issuers may offer a grace period to use unredeemed rewards.
• Missing a Payment: Failing to pay the minimum amount due can result in losing rewards for that billing cycle. You may recover them by paying your bill and a reinstatement fee.
• Account Closure by Issuer: If your account is delinquent, inactive, or violates the cardholder agreement, the issuer may close it, causing you to forfeit your rewards.
• Returns: Returning a purchase typically results in the issuer clawing back the reward earned on that purchase.
• Program Cancellation: In rare cases, an issuer may end its rewards program, usually providing a grace period to redeem earned rewards.

How to Keep Your Credit Card Active

To avoid losing rewards due to account inactivity, consider the following strategies:

• Make Regular Purchases: Set a reminder to use your card for small purchases every few months and pay it off promptly.
• Set Up Recurring Charges: Use your card for small recurring charges, such as a streaming subscription, and set up automatic payments to ensure timely payments.

Note that some issuers may allow you to reopen an inactive account, but you may not recover lost rewards.

The Bottom Line

To safeguard your credit card rewards, review the program’s terms and conditions to understand how you can forfeit them. If the program has an expiration policy, find out how to extend it. Keeping your accounts active and in good standing is essential to maximize the benefits of your cash back, points, or miles.

For expert advice on managing your finances and mortgage services, contact O1ne Mortgage at 213-732-3074. Our team is here to help you achieve your financial goals.