Whether your points expire depends significantly on the type of rewards program you're participating in. There isn't a universal rule; credit card rewards often have different terms than points earned through airline or hotel loyalty programs.
Credit Card Rewards Expiration
Many credit card rewards programs are designed so that your points generally do not expire. This means that as long as your account remains in good standing, the points you've accumulated can often be saved and used whenever you choose, without a specific time limit.
When Credit Card Points Can Be Lost
While expiration dates are rare for credit card points, there are specific circumstances under which you might lose them:
- Account Inactivity: Some programs may forfeit points if your account remains inactive for an extended period, though this is less common for major credit card programs.
- Account Delinquency: If your credit card account becomes delinquent (e.g., you miss payments), the issuer may revoke your accumulated points.
- Returning a Purchase: If you earned points on a purchase and then return that item, the corresponding points will typically be deducted from your balance.
- Account Closure: Closing a credit card account often results in the forfeiture of any unused points, especially if you don't transfer them or use them before closing.
Practical Insight: To ensure you don't lose credit card points, always keep your account in good standing and be aware of any inactivity clauses. If you plan to close an account, redeem or transfer your points beforehand.
Hotel and Airline Rewards Expiration
In contrast to many credit card programs, points earned through hotel and airline loyalty programs typically do have an expiration period. These periods can vary widely but commonly range from 12 to 36 months of inactivity. This means if you don't earn or redeem points within a specified timeframe, your entire balance could expire.
| Reward Type | Typical Expiration | How to Prevent Expiration |
|---|---|---|
| Credit Card Rewards | Often never expire | Keep account active and in good standing, avoid delinquencies, redeem before closing account. |
| Hotel Loyalty Points | 12-36 months | Engage in qualifying activity (earning or redeeming points) within the set timeframe. |
| Airline Miles | 12-36 months | Engage in qualifying activity (earning or redeeming miles) within the set timeframe. |
Preventing Hotel and Airline Point Expiration
The key to keeping your hotel and airline points active is to engage in qualifying activity. This usually means:
- Earning Points: Make a new purchase with a co-branded credit card, fly with the airline, stay at a partner hotel, or complete an eligible transaction with a program partner.
- Redeeming Points: Use a small portion of your points for a minor redemption, even for something inexpensive, to reset the expiration clock.
- Transferring Points: Some programs allow you to transfer points to or from a partner, which can sometimes count as activity.
General Tips to Manage Your Rewards
Regardless of the type of points you hold, proactive management is crucial:
- Review Program Terms: Always read the specific terms and conditions of each rewards program you are enrolled in. Expiration policies are clearly outlined there.
- Monitor Your Accounts: Regularly check your points balance and transaction history for all your loyalty programs.
- Set Reminders: If you know your points have an activity-based expiration, set calendar reminders to ensure you perform a qualifying action before they expire.
- Consolidate or Use: If you have small balances across many programs, consider whether it's more beneficial to use them or transfer them to a single program if allowed.
Understanding the specific rules of each rewards program is the best way to ensure your hard-earned points don't go to waste.
