Don’t lose your credit card points: A guide to avoiding expiring rewards

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Chances are, you choose your credit cards based on the rewards they offer. Earning points, miles, and cash back ranks are the top perks offered by many cards. These rewards can be valuable, saving you money on everything from everyday purchases to travel experiences. 

But these rewards don’t last forever. In fact, some have expiration policies that can catch you off guard — you can lose your points or miles if you don’t redeem them by a certain date. 

Want to keep your credit card rewards from expiring? Here’s what you need to know.

How do credit card rewards work? 

Credit card rewards programs are fairly straightforward. There are generally three main types of rewards: 

• Cash back: These programs offer a percentage of your spending back as cash, which you can redeem as a statement credit, direct deposit, or check. Some cards offer a flat cash back rate on all purchases, while others offer higher rates for certain categories. 
• Points: Point-based programs allow you to earn points for every dollar spent. You can redeem points for various rewards, such as gift cards, merchandise, or travel. 
• Miles: Travel credit cards often offer miles as rewards, which you can redeem for flights, hotel stays, or other travel-related expenses. 

Each card issuer has its own rewards program, with varying earn rates, redemption options, and, yes, expiration policies. 

When do credit card rewards expire? 

The answer to this question depends on the specific credit card and rewards program. Some rewards never expire, while others have a set expiration date.

No expiration

Some credit card rewards programs, particularly those offered by major issuers like Chase, Capital One, and Discover, have no expiration date. This means your rewards will never expire as long as your account remains open and in good standing. For example, Chase Ultimate Rewards points earned with the Chase Sapphire Preferred® never expire, giving you the flexibility to save up for a big redemption.

Fixed expiration dates

Some programs have a set expiration date, ranging from 12-60 months from when you earned the rewards. For instance, American Airlines AAdvantage miles expire after 24 months of inactivity, meaning you'll need to earn or redeem miles at least once every two years to keep your account active.

Account closure

If your card issuer closes your account — which can happen if you fail to make your minimum monthly payment or don’t use your card over a 1-2 year period — your rewards may disappear. If you voluntarily close your account, any unredeemed rewards will be forfeited. 

This is why redeeming your rewards before closing a card is important, especially if you've accumulated a significant balance.

Policies by specific issuer

Card issuers can change their rewards programs anytime, including new expiration policies. Here’s a look at rewards expiration policies by major card issuer: 

• Discover rewards never expire as long as your account is open and in good standing. If you have unearned cash-back rewards and your account has been closed or unused for over 18 months, Discover will send you a check with your outstanding balance. 
• Chase rewards do not expire as long as you keep your account open. If you close your account, you will lose access to outstanding rewards. The same is true if Chase cancels your account. 
• Capital One points won’t expire for the life of your account, though you might lose any rewards you haven’t used if your account is closed. 
• American Express rewards don’t expire as long as you have one active American Express Card enrolled in the company's Membership Rewards program. But, if you don't make the minimum required payment on your card during any billing statement, you may forfeit the points you earned during that period. You can recover these points if you pay the amount due on your card, request those points from American Express, and pay a fee of $35. 
• Wells Fargo rewards points also don't expire. However, you might lose them if Wells Fargo closes your account or if you close your Wells Fargo card before you use your rewards.

What about airline miles or hotel points?

Co-branded cards that offer airline miles or hotel points are most likely to have expiration dates. 

Most credit card rewards are subject to the expiration policies the card issuer sets. However, airline and hotel miles often follow the expiration rules of their respective loyalty programs. 

For example, to keep your rewards with a card that earns AAdvantage miles, you'll need to either earn or redeem miles on American Airlines or with an AAdvantage partner at least once every 24 months. If you don't do this, the miles you earn can disappear. This applies to all co-branded American Airlines credit cards. 

On the other hand, Delta SkyMiles never expire — so if you have a co-branded Delta card, you don’t need to worry about losing miles. 

If you have a card that earns Hilton Honors points or Marriott Bonvoy points, your rewards will also expire after 24 months of no activity. 

With a co-branded card, it's important to understand the expiration rules of the specific airline or hotel. This ensures you don't lose valuable rewards or miles due to inactivity or expiration.

How to keep your rewards from expiring 

The most common way cardholders lose rewards is if their provider closes their account. This can happen for many reasons, but the most common is if you don't make on-time payments or stop using your card completely. 

So, to avoid losing your credit card rewards, it’s important to use your card responsibly. Here’s how.

Regularly use your card

One of the simplest ways to prevent your credit card rewards from expiring is to use your card regularly. Most card issuers require you to make a purchase or redemption at least once every 12-24 months to keep your rewards active. 

You can easily meet this requirement by using your card for everyday purchases, such as groceries, gas, or dining out. 

Even if you don't have a specific redemption goal, making small purchases with your card can help you avoid losing rewards. Consider setting up automatic payments for recurring expenses, such as streaming services or utility bills, to ensure regular card use.

Redeem rewards strategically

If your rewards are set to expire within the next few months, consider using them as soon as possible. This could be anything from redeeming cash back rewards for a statement credit to booking a flight or hotel stay with your points or miles. 

Some credit card rewards programs offer more flexible redemption options than others. For example, Chase Ultimate Rewards points can be redeemed for travel, cash back, gift cards, and even transferred to partner airline and hotel loyalty programs. This flexibility can make it easier to find a use for your rewards before they expire. 

When planning your redemptions, consider the value you're getting for your rewards. Some redemption options, such as travel bookings or transferring points to partner programs, may offer a higher value per point or mile than others, like cash back or gift cards.

Stay informed about future changes

Credit card issuers can change their rewards programs anytime, including adjusting expiration policies. To avoid being caught off guard by these changes, staying informed about your credit card's rewards program is essential. 

Review your cardholder agreement and make sure you understand the current expiration rules. You can also sign up for email alerts to stay up-to-date on program changes or special promotions. 

How to make the most of your credit card rewards 

1. Choose the right card: Select a credit card that aligns with your spending habits and offers rewards that you'll use. For example, if you're a frequent flier, a travel rewards card might be the best choice. 
2. Use your card: To keep your rewards from expiring due to inactivity, use your credit card regularly, even for small purchases. 
3. Redeem rewards the right way: Don't let your rewards gather dust! Redeem them for maximum value, whether booking a flight or buying a gift card. 
4. Stay organized: Keep track of your rewards balances and expiration dates using a spreadsheet or a tool like AwardWallet. This will help you stay on top of your rewards and avoid letting them go to waste. 
5. Take advantage of bonus categories: Many rewards cards offer bonus points or cash back for spending in specific categories, such as dining, travel, or groceries. Use the right card for each purchase to maximize your earning potential. 

The bottom line 

You rarely have to worry about your credit card rewards expiring. But that doesn’t mean that there isn’t any risk that the miles or points you’ve earned won’t disappear. 

To make the most of your rewards, choose a card that aligns with your spending habits, use it regularly, and redeem your rewards strategically. Stay organized and take advantage of bonus categories to maximize your earning potential.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.