REASONS WHY YOU MAY LOSE YOUR CREDIT CARD REWARDS
Am so convinced that what you don’t like to lose your credit card rewards for anything. This boils down to the fact that earning the tiniest amount of rewards can take a lot of time and spending as well. Even if the credit card reward is as small as $25 it needs about hundreds of dollars spending for several months to gather.
Losing your credit card is bad as losing your actual cash in your Wallet. But you might be surprised that you can lose your credit card rewards. There’re lots of things that can make you lose your credit card rewards.
Even though different rewards programs exist from one card to the other. In this article, I’ll be reviewing some things that you’ve to know and avoid if you don’t want to lose your credit card rewards.
9 ways you may lose your credit card rewards
1. Making Late Payment
It’s very interesting to know that late credit card payment has lots of consequences. Late credit card payment includes:
- Late payment fee
- Interest rate increase
- Damage to your credit
- Introductory APR
- Annual charges
So paying late can cost you your credit card rewards. Credit card issuers will stop at nothing in making sure that you forfeit your rewards if you make late payments. The number of payments you’ll miss without losing your credit rewards solely depends on your credit card.
If your rewards are gone, they’re gone forever. So, you don’t have to make the mistake of not paying it on time. Make your credit card payment on time in case you’ve some rewards you’ve not used.
Taking caution on the side of credit payment is very important. You may miss a payment once, no big deal. But one-time late fee payment definitely will offset and rewards you’ve got.
2. Allowing your Card to be Inactive
Not using your credit card makes your card inactive. It doesn’t matter the credit card you’re using. Be it Bedford credit card or Students credit card, they’ll all behave the same way if you don’t use them.
You stand a risk of losing your rewards if you’ve earned some already. And another one is that your credit card issuer can close your credit card.
If you want your rewards to remain intact, you must use your credit card at least once in every three months. If you maintain this, your credit card will remain safe. To get more information from this, refer to your credit card terms and conditions for more on credit card inactivity.
3. Rewards Expiration
Some card issuers offer credit card rewards that don’t expire. But others too, give credit card that’ll expire if you don’t use them on time. Mostly within the specific time you’ve to use them.
Ensure you know the rewards expiration. This is very important in retail-store rewards and uses them before they expire. You don’t have to let your rewards to expire because you don’t have a need to use them right away. You may apply your rewards as a statement credit to your account. However, you can also redeem them for a gift card so that you may use them later.
4. Closing your Credit Card
Closing your credit card will make you lose all the accumulated rewards. Even the ones that didn’t post to your account. If you want to close your credit card you’ve to make the right inquiry. Most credit cards allow credit balance transfer of your rewards to another credit card. But you must know that this is only possible if they’ve the same rewards program.
However, it’s also possible with the partnership rewards with a hotel or an airline before closing your account. One of the consequences involves canceling your sign up reward bonus. But if you want to protect your sign up bonus, you’ve to use your credit card for at least one year.
5. Returning Items that earned you Rewards
Some people can take advantage of credit rewards to earn rewards and thereafter, return the items and keep the rewards. So, you can lose your rewards if you return items that earned you rewards. Cardholders shouldn’t risk losing credit cards rewards by keeping an item they don’t want.
6. Don’t game the system
It’s true that most cardholders find a way to meet the spending requirements of the credit card’s sign up bonus. This must be done in a creative way such that you won’t violate the terms and conditions of the rewards program. Any violation of the terms can make you lose credit card rewards.
7. If your Purchase is outside the Reward Categories
Buying stuff outside the rewards categories won’t earn you any rewards and it won’t make you lose rewards either. That means that you’ve to give attention to those items that can earn your rewards. Also, you should know the kind of stores that you’ve to shop in.
For instance, shopping with your gas rewards credit card will give you rewards on purchases. But it won’t give your rewards on gas purchases in warehouse other than purchases from the Standalone gas stations. This is because the Standalone gas stations accept the credit card.
8. Filing for Bankruptcy
Filing Bankruptcy will make it difficult to qualify for a rewards credit card. You’ll start earning credit card rewards if you rebuild your credit.
9. Missing changes to the Rewards program
Cardholders can lose credit rewards if they miss out any changes made by the card issuer on the reward program. Card issuers may give you a chance to use the credit card rewards before changing the program. In that case, you’ll have to act fast so as not to lose all your rewards. If you don’t take it seriously, you may lose your credit card rewards.