Do Credit Card Rewards and Points Expire?

Credit card rewards, whether points, miles, or cashback, offer an incentive for cardholders to use their cards. These programs provide value, allowing individuals to offset expenses for travel, merchandise, or monthly statements. However, the continued availability of these benefits is not always guaranteed. Many factors influence the longevity of earned rewards, including specific program policies and cardholder actions.

Understanding Reward Expiration Policies

Credit card rewards programs employ various expiration policies. Some rewards operate with a fixed expiration date, meaning they expire after a predetermined period regardless of account activity. For instance, certain programs may stipulate that points expire three to five years after they are earned, irrespective of how frequently the card is used or rewards are redeemed. This places a clear time limit on their usability.

Another common structure involves event-driven expiration, where rewards remain active until a specific event occurs. This often includes account closure or a period of account inactivity. Rewards do not have an inherent expiration date, but their continued existence depends on the cardholder maintaining certain conditions. Many major credit card issuers state that points do not expire as long as the account remains open and in good standing.

Conversely, rewards earned through co-branded airline or hotel loyalty programs often adhere to the partner loyalty program’s expiration rules, which typically involve activity-based expiration. These points might expire after 12 to 36 months of inactivity if no earning or redeeming activity occurs. Some loyalty programs offer no-expiration policies or waive expiration for elite status members or specific credit card holders. Review the specific terms for each card and loyalty program in your cardholder agreement.

Factors Leading to Reward Forfeiture

Several circumstances can lead to reward forfeiture or expiration. Account closure is a primary reason for losing accumulated rewards. If a credit card account is voluntarily or involuntarily closed, rewards may be lost. Some issuers may offer a grace period, typically 30 to 90 days, to redeem rewards after an account closure, but this varies. Rewards held directly with an airline or hotel loyalty program are generally not lost upon closure of a co-branded credit card, as they reside with the loyalty program itself.

Account inactivity is another common trigger for reward forfeiture. Many programs require activity, such as making a purchase or redeeming points, to keep rewards active. This inactivity period often ranges from 12 to 24 months before points are forfeited. Issuers may close inactive accounts to manage costs and risk, which can result in reward loss.

Credit card issuers retain the right to modify or terminate their reward programs, which can lead to the devaluation or expiration of existing rewards. Issuers can make changes to program terms. Engaging in fraudulent activity or violating the terms and conditions of the cardholder agreement can also result in the forfeiture of all earned rewards.

Maximizing Your Reward Value and Avoiding Loss

To prevent reward loss and maximize value, proactive management is important. Regularly monitor your rewards balance and understanding any associated expiration dates. This information is available on your monthly statements or through the card issuer’s online portal or mobile application. Familiarize yourself with the specific terms and conditions of your credit card’s rewards program, as policies vary by issuer and card product.

Redeeming rewards regularly, rather than hoarding them, can mitigate the risk of expiration, especially for points with fixed expiration dates. For programs with inactivity clauses, maintaining consistent account activity is necessary. This can involve making small purchases or redeeming a minimal amount of points to reset the expiration clock.

Consider transferring rewards. Some credit card programs allow points to be transferred to airline or hotel loyalty partners, which can reset the expiration date or consolidate points. Some programs permit transfers to other cardholders within the same household, preventing forfeiture. If uncertain about your rewards policies or facing an impending expiration, contact your credit card issuer’s customer service for clarity and potential solutions.