Do Your Credit Card Rewards Expire? What You Need To Know
January 29, 2024
6 min read
Credit cards have seamlessly integrated into our financial routines, bringing us ease, safety, and a wide array of appealing perks. One of the most appealing features of credit cards is the rewards they offer, from cashback to travel miles and more. But do your credit card rewards expire?
Many credit card users ponder this question, and the answer isn't a one-size-fits-all. It hinges on the credit card company you're with and the precise rewards program you've signed up for.
The Types of Credit Card Rewards
Let's begin by familiarizing ourselves with the various types of credit card rewards before we delve into their expiration policies.
1. Cashback Rewards
Cashback rewards stand out as one of the simplest and most widely loved perks offered by credit cards. With these rewards, you receive a portion of your spending back in cash. It's akin to enjoying a modest discount on each of your credit card purchases.
Cashback rewards are typically easy to understand and redeem. When you accumulate a certain amount of cashback, you can often deposit it directly into your credit card account or receive it as a check.
2. Travel Rewards
Travel rewards credit cards provide you with points or miles that you can use to get free flights, hotel accommodations, rental cars, and other travel-related benefits. These rewards are especially appealing if you travel often.
With travel rewards, it's common to receive bonus miles as a reward, whether you've just joined or met a specific spending requirement within a designated time frame.
Nonetheless, it's essential to recognize that the value and flexibility of these rewards can vary greatly, contingent on the credit card issuer and the specific travel program they offer.
3. Points Rewards
Points rewards programs are versatile, offering a range of redemption options. These options include gift cards, merchandise, statement credits, or charitable donations.
Points can have different values based on how you use them and the guidelines established by your credit card company. Points rewards are cherished for their versatility, allowing you to tailor their use to your individual preferences.
4. Co-Branded Rewards
Co-branded credit cards are associated with particular businesses or brands, such as airlines or retail stores. These cards frequently have perks and advantages customized to match the partnering company.
Co-branded rewards can include free checked bags, exclusive discounts, or accelerated points earned when you make purchases with the affiliated brand. These rewards are an excellent choice if you frequently engage with the partner company.
The Basics – Do Credit Card Rewards Expire?
Do credit card rewards expire? It's a fundamental question that many credit cardholders ponder. The answer depends on the type of rewards and your credit card issuer's policies.
Cashback rewards typically have the most lenient expiration policies. Many credit card issuers do not set an expiration date for your cashback earnings. However, reviewing your card's terms and conditions is essential, as some may have specific rules regarding inactivity or account closure.
Travel rewards, including points and miles, can vary significantly in their expiration policies. Some credit card issuers offer rewards that never expire, granting cardholders the flexibility to use them whenever they wish.
In contrast, others may require you to use your travel rewards within a specified timeframe, often within a few years. Additionally, certain cards may have blackout dates or restrictions on redeeming rewards with specific travel partners.
Points rewards programs generally offer more flexibility, with many not imposing expiration dates as long as your account remains open and in good standing. Nevertheless, it's essential to stay active with your credit card to prevent potential expiration due to account inactivity.
Co-branded credit cards, affiliated with specific companies or brands, can have varied expiration policies. These policies depend on the partnership between the credit card issuer and the affiliated brand, so reviewing your card's terms and conditions for details is crucial.
To safeguard your rewards, regularly monitor your account, redeem them periodically, and thoroughly understand your credit card's terms and conditions. By following these basic principles, you can maximize the value of your credit card rewards while avoiding potential expiration pitfalls.
How Long Do You Have?
Typically, credit card rewards last anywhere from 12 to 24 months. However, certain card issuers offer rewards that never expire.
For instance, Chase's Ultimate Rewards and American Express's Membership Rewards have no expiration dates as long as your account remains open and in good standing. On the other hand, airline-specific credit cards often have rewards that expire if there's no account activity for a certain period.
Understanding the Fine Print
Avoiding unpleasant surprises during your checkout process is all about grasping the fine print. Pay close attention to terms such as "expiration," "validity," and "usage."
These will give you a clear idea of how long your rewards last and what you need to do to keep them active. It's also essential to understand what constitutes activity in the eyes of your card issuer. In some cases, merely earning or redeeming points can keep your account active.
Tips to Prevent Your Rewards from Expiring
To ensure you make the most of your credit card rewards and prevent them from expiring, consider the following strategies:
1. Stay Informed
Understanding your credit card's terms and conditions is your first line of defense. These documents outline important details about your rewards program, including any expiration policies. Familiarize yourself with these terms, and if you have any doubts, contact your card issuer's customer service for clarification.
2. Set Up Alerts
Many credit card issuers provide account alerts that can be tailored to notify you about various account activities, including upcoming reward expirations or inactivity warnings. Setting up these alerts is an excellent way to stay on top of your rewards and avoid unpleasant surprises.
3. Use Your Card Regularly
Some rewards programs may consider your account inactive if you don't use your card for a certain period. To prevent this, make small, routine purchases with your credit card. Even everyday expenses like groceries or gas can help keep your account active and your rewards safe.
4. Create a Redemption Plan
To ensure you don't accumulate excessive unused rewards, develop a redemption plan. Determine how and when you want to redeem your rewards based on your financial goals and preferences. Regularly check your reward balances and make redemption a routine part of managing your credit card.
5. Understand Partner Relationships
Co-branded credit cards often have rewards tied to specific partner companies or brands. Be aware of any changes in these partnerships, as they can impact your rewards. For example, your rewards might be affected if the partnership ends, so stay informed about any potential developments.
6. Contact Customer Service
Don't hesitate to reach out to your credit card issuer's customer service if you have questions or concerns about your rewards or their expiration policies. They can provide you with personalized information and guidance to address your specific needs.
7. Stay Engaged
To prevent account inactivity-related expiration, continue to engage with your credit card account. Even if you're not making substantial purchases, using your card for occasional transactions keeps your account active. This simple practice can help ensure your rewards remain valid.
The Bottom Line
Credit card rewards are an excellent method to make your money go further. Nonetheless, making the most of these rewards hinges on your capacity to comprehend the rules about when they might expire.
So, the next time you reach for your card, take a moment to review the fine print and follow strategies to safeguard your rewards from expiration. With a bit of thoughtful planning and consistent card usage, you can ensure that your credit card rewards remain at your disposal whenever you require them.
Always remember that credit card rewards are a benefit, not a guaranteed right. They're intended to stimulate spending, so it's essential to be prudent in your card usage and consistently settle your monthly balance in full. Failing to do so could result in interest fees that outweigh your accumulated rewards.
While credit card rewards can indeed expire, staying informed and proactive can make the most of your rewards without worrying about losing them.
