Don’t let your credit card reward points expire – Here’s how to keep them alive | Mint

Credit cards are no longer just a luxury but have indeed become a part of your lifestyle. With the benefits of credit cards, you no longer have to worry about spending immediate cash. The lender pays your bill on your behalf and you do not have to worry about it till the next bill due date.

Credit card reward points provide you with benefits like cashbacks, discounts, complimentary travel and many more. Let us understand these reward points and their expiry policies in detail.

What are credit card reward points?

When you use your credit card, you earn reward points based on the amount you spend. These points can be redeemed for a variety of things, like merchandise, travel bookings, cashbacks, or even statement credits.

However, these reward points often come with expiration dates after which you might not be able to redeem them. Hence, it is better to always stay aware of your reward points expiry dates to make the best out of your credit card privileges.

Why do reward points expire?

Banks set expiration dates on reward points to manage their liabilities and encourage you to use the rewards. If these points are left without any expiration dates, they would become an added cost for the lender. Reward points expiry also plays a major role in encouraging you to use your credit card more often and avail reward points unlocking the true benefits of the card.

Common expiration policies

Expiration rules vary depending on the credit card you have as well as the market policies. Let us understand some of the most common expiration policies on reward points:

Fixed validity period: Points expire after a set period of time, usually being anywhere from 2 to 3 years.

Account inactivity: If you don’t use your card for more than a specified amount of time, any accumulated points may expire.

Collaboration: Many lenders collaborate with brands for a specific period of time during which you can avail exclusive deals through reward points. However, the expiry may depend on when the collaboration ends.

RBI guidelines: The expiry and validity of the expiry of reward points may also depend on the update in the guideline issued by RBI on credit cards.

Although some premium cards come with reward points that don’t expire, these cards very often have a much higher annual fee.

Tips on keeping your reward points from expiring

Keep track of your points: Frequently check your points balance and their expiration dates. Most lenders share these details in your bill statements or on the website or mobile app.

Use your card regularly: Regular usage can keep your account active and prevent inactivity-based expiration of your hard earned points.

Know the rules: Read your card’s reward program terms carefully. This way you can be well informed about the policies of the lender on your reward points and its usage.

Spend smartly: Focus spending on categories where your card offers the most points, like dining, travel, or groceries. This way you can spend smartly and save on your expenses.

Combine points: Some lenders allow you to pool points across multiple cards or transfer them to one program so that you can get the best value for your transactions.

Promotions and festive deals: Look for limited time offers where your points may have extra value or you can earn extra points while spending less.

In conclusion, reward points can help you get offers on your favourite brands. However, you must keep in mind that credit cards can make you form a habit and reward points can lead you to impulsive spending which you may end up doing just to earn more points. Hence, always be aware of your spending habits so that you can avoid any hefty bills at the end of the month. This way you can make the most out of your credit card and stay away from any debt traps.

(Note: Using a credit card carries its own set of risks)