With credit card rewards, reading the fine print is always prudent and one of the first “conditions” to check for is whether or not there’s an expiration date on points. If so, how will it impact your reward? Given that the point of such cards is to get a tangible benefit in return, it’s imperative to know whether or not your efforts are safe…
Or whether fortunes can change with a turn of the calendar.
While many credit card offers remain protected from expiration dates, many others are defined by this particular clause. It’s up to cardholders to find out the exact terms themselves. To do so, again, read the fine print.
Always do this. What are the pros/cons of your card? The credit card company isn’t going to call to explain your credit card rewards; it’s up to you to know how they can be redeemed and for how long they’re good for. Imagine building up points for two years only to see them expire in one day. Unfortunately, it can happen.
What Does That Mean?
Rewards credit cards are attractive in that most honor everyday purchases. Some cards for instance, offer bonus points on purchases made at gas stations, supermarkets, and drugstores. These basic necessities would be met anyway, so why not earn something in the process? Yet it’s not always as simple as that.
Oftentimes encumbered by rules and restrictions, credit card rewards can sometimes be a challenge to redeem. If for instance there’s a two-year expiration date on points and for every 3,000 points, $20 is earned, but $100 must be accrued before any of it can be requested - then you might have a problem.
If say, you’ve built up $93, but tomorrow, the first two years rolls around, it’s possible everything could “expire,” including your $93. In short, two years of spending and nothing to show for your efforts. That’s why it’s often most rewarding to settle on a card that matches your normal spending patterns. Even if you’re unable to reach the rewards minimum, at least you won’t feel as if you were promised something more. Should you earn a reward, all the better.
Beware of Heavy “Cons”
With all this said, a rewards credit card should work towards something you can actually use and would want to. This is why cash back cards are so popular, as everyone can do with a bit more cash.
In fact, for aggressive spenders, a tiered program may prove a good idea, as more points are rewarded once a spending minimum is met. With any plan though, be sure to look into what stores/merchants qualify for points, as some cards may not recognize certain purchases, such as those made at member warehouses like Costco or Sam’s Club.
With hundreds of cards and offers to choose from though, it’s no wonder keeping track of credit card rewards, expiration dates, varied interest rates, and caps can be confusing. However, just remember that deliberation in the present can mean averting disappointment in the future. As for expiration dates, checking for them should be at the top of any list.
It’s important. For many cardholders, if a credit card comes with various perks, but also a short expiration date, this con could outweigh every shining pro. It’s true that points shouldn’t be expected to sit forever, but it’s also true that as a customer, you should have enough time to make use of what you’ve built. Basically, you don’t want your credit card rewards to seem in the end, “unrewarding.”
Find the fine print. The answers lie within. Indeed, for every credit card you consider, study the terms carefully. Comparison-shop and save. Do this and your decision will be clearer. Good luck!
