Charles H. Miller
Credit cards with rewards are great but those rewards are not necessarily yours forever. In fact, there are a number of ways you can lose them, and here we want to discuss some of the possible scenarios so you should know to get and keep the goodies.
1. Late payments
Beyond fees and higher interest rates, not making minimum payments on time can also prompt the credit card issuer to revoke all or some of the rewards you have earned. For instance, American Express has such policy and will forfeit monthly rewards to members who pay late for that month.
2. Expired rewards
Some rewards don’t last forever and include an expiration date. You should read the card’s terms and conditions to check this sort of information. Most rewards, though, last until you have your account (with the credit card issuer) opened. Nevertheless, read the fine print so you don’t get surprised at a later date.
3. Spending less than minimum requirements
Many rewards programs have minimum monthly or annual amounts that need to be spent with a credit card in order to make rewards available to the users. If you don’t spend as much, you may not earn a single cent back. Then again, this criteria shouldn’t force you to overspend just to earn the “right for rewards.” That’s not the point, we think — the point is to find the “right” card for you, one that will reward purchases you already make.
4. Change of Terms
From time to time, credit card issuers can change their terms and conditions. They do inform the cardmembers about these changes and at that point, you should determine whether the rewards program in question still provides the benefits you want. With points-based programs, this kind of a change can force you to quickly spend your points, as they may worth less money after the new terms become live.
What to do?
It is rather simple – act responsibly with your credit card by paying your balance on time, and if possible — don’t carry too much of it from month to month. This way, you will not only get rewards, but also avoid paying interest to the bank issuer. Also, make sure to read each offer’s terms so you know what you’re getting into. You can’t blame the banks — and other credit card issuers, for that matter — for wanting to make money. They are in this for the money, after all.
Again, credit cards with rewards are great products and if used correctly – they can be beneficial to you. That “correct” part includes making purchases with the card you would be making anyway, without leaving any money on the table. So go for it… Start by checking out some rewards cards below.
