While it’s true that most credit card miles are used to purchase plane tickets, there are instances when a trip isn’t possible. Either not enough points have been earned or the timing just isn’t right to get away. If so, then the cardholder might need to use the accrued miles (or points) for another purchase. Either do this or see those well-earned points expire altogether. Fortunately, more and more airline and travel cards today are offering alternatives to straight miles.
The Point of Rewards
While airline-specific cards allow cardholders to combine their points with frequent-flier miles, generic cards require that all miles be earned on the card itself. One pro of the generic card is that credit card miles can be used on any airline. Each type of card however has a set of pros and cons to consider.
The bottom line is that rewards cardholders naturally want to get the most from their cards. If it means a low conversion of points for merchandise versus points that go unused, then the former will still be the preference. You always want to get something tangible back from your investment.
Point conversions might be necessary given that in recent years, airlines and card issuers have begun placing stricter rules on when air miles/points need to be used before they expire. This crunch in time has made it more difficult for cardholders. Either they’re unable to reach the minimum credit card miles needed to purchase a ticket or as said, the timing simply doesn’t work with the demands of work and life.
At some point, you may even start to question what the benefit of your rewards card is. With a short expiration, is it worth it?
Saving Expiring Points
For example, let’s say a ticket costs 25,000 miles and upon sign-up, you’re given 15,000 points to start based on a membership fee of $75. If you earn 1 mile per every dollar spent, you’d have to spend at least $10,000 on your card over the next two years.
This isn’t difficult to do, but when factoring in the annual fee of $75, that means you will have spent $150 before converting your points into a ticket. And what if the expiration of the frequent-flier program is set at 18 months? That means you’d have to reach 25,000 credit card miles in 1 1/2 years and then, plan for a vacation in advance, hopefully one that will work with your schedule.
But what if it doesn’t?
For some people, two years is plenty of time to plan for a vacation, but because expiration dates have become less flexible, there are times when such plans are nonetheless impossible to make. Prior to 2007, most airlines would allow miles to sit in an account for 36 months. Since then, many frequent-flier programs have reduced this to 18 months and for generic air-mile cards, expiration dates and minimum points earned have always been something to balance and consider.
Did you know though that credit card miles can be used for purchases other than plane tickets? It’s true and more cards today are opening up the possibilities. While it’s also true that you won’t get as much value for your earned points, at least they won’t expire with nothing to show. Typically, you can make travel-related purchases at half the value and merchandise purchases at roughly one-fifth.
It’s Up to You
The best thing to do with airline and travel cards is to keep track of your balance(s), point totals, rollover, and expiration dates. A day too late is just that: too late. You won’t be able to go back and retrieve credit card miles lost, so definitely be aware of your status and act accordingly, whether it’s planning a vacation or buying a few Christmas gifts for free.
