Don?t Want to Lose Rewards on Your Credit Card? Follow These Tips

Posted by mymoneymantra on May 30th, 2018

What do you look for when you wish to submit your Credit Card application? You look at the various features on the Credit Card, especially the rewards points programmes and redemption options. Check out Credit Card offers from major leading Credit Card providers on a single screen through MyMoneyMantra.

Going through the card features and learning about the rewards programs is one aspect. Using the rewards points correctly, and not losing them is another. It takes time to accumulate rewards points. You might have to spend thousands of rupees over the year to earn significant reward points to purchase something memorable.

It can surprise you that many people lose their rewards points easily. It takes months to build, but a couple of minutes are enough to lose them.

Follow these tips and ensure that you do not lose rewards on your Credit Card:

How do you lose rewards on your Credit Cards?

• Making a late payment can cause you forgo these rewards
• Inactive and inoperative Credit Cards can lose rewards
• Rewards can expire
• Closing your Credit Card account
• Returning items brought through rewards programs

Follow these tips and see to it that you do not lose rewards:

· Never make late payments

Late payments attract late payment fees and hamper your credit score. Specific Credit Cards forfeit your rewards points if you habitually make late payments. It depends from card issuer to card issuer. The issue with Credit Card rewards is that you do not get them back once you lose them. Hence, pay your credit card bills on time.

· Keep your Credit Card active

Use your Credit Card frequently and do not let it become inactive. You might lose the rewards you have earned. If you do not use your card often, the card issuer can unilaterally close the card thereby forfeiting your reward points. Refer to the terms and conditions of the Credit Card agreement and ensure that you keep the card active.

· Pay attention to the rewards expiry date

Some bank Credit Cards never expire. Others have a specific expiry date. You should redeem them before the particular period. It is applicable more to the retail store Credit Cards. Some banks send you messages about the impending expiry of the rewards points whereas some do not.

· Redeem your rewards points before closing the Credit Card account

Closing your Credit Card account can make you lose your accumulated rewards points. Hence, it is advisable to redeem the rewards points before closing it. Explore possibilities of transferring the rewards points to another card with similar reward programs. It usually happens in case of travel or lifestyle Credit Cards. Often, rewards points received as sign up bonus might expire within a few months, Check out these factors as well.

· Purchase your items within the reward categories

Technically speaking, you do not lose any rewards points if you purchase from outside the respective rewards categories. However, you do not earn any points as well in the bargain. A prime example is the fuel cards that are eligible for use at IndianOil petrol pumps. Refuelling at a Reliance petrol pump or Bharat Petroleum petrol pump might not get you the rewards due on the Credit Card.

· Returning the items purchased in the rewards categories makes you lose the earned rewards

Be careful while making purchases on the card. You might make one and earn the reward points. Subsequently, you find that you cannot afford the same and you return the items purchased. You lose your rewards points in the bargain.

· Do not try to manipulate the rewards points system

Not all people in the world resort to such activities. However, some people do like to play mischief by trying to churn Credit Cards. Earning sign up bonuses on more than one card is permissible, but trying to sell or buy these rewards points are not. You will most likely lose the rewards points that you have accumulated if you decide to game the system.

· Filing for bankruptcy can make you lose rewards points

While filing for bankruptcy, you have to list out the cards you wish to include in the bankruptcy. You not only lose your rewards points on these cards but also the rewards points you have on your other Credit Cards. It also affects your eligibility to Submit a Fresh Credit Card Application.

· Be alert and do not miss out on the changes to the rewards points system

Usually, your bank informs you about the changes in the rewards points system whenever there are any. Keep track of these changes and use them to your advantage. Redeem the rewards points before the system changes. Otherwise, you lose your points for good.

Also Read: How Secure Are Online Transactions?

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