Credit cards help you rake in points and rewards every time you pay for a service or buy something. You can redeem these points or rewards and convert them into money or some discounts on certain products and services. Usually, credit card users are informed of these benefits by the credit card companies through different modes of communication. However, some people forget about these benefits or are too busy to track these points to redeem them before the expiry date.
It is important to know how to keep track of your credit card points and discounts. Here are some tips for credit card users to make things easier for you and to ensure your credit card rewards don’t expire.
Check Your Credit Card Statements Regularly
One of the useful ways to track your credit card points is when you check your monthly statement. It features details of all your expenses and reward points. You must note down credit card reward points earned every month. It will help you track your reward points expiry, and you can redeem them accordingly.
Credit Card Points Expiry Date
When you earn reward points through your credit cards, they get added to your account. Their validity depends on the card. On some cards such as the Finbooster, there is no expiry date for the points. On other cards, the rewards may expire after a time. Most cards have an expiry of around 18 to 36 months for their credit cards. The reward expiry is calculated from when points get credited to your account. So, you need to redeem the reward points before their expiry date i.e., before they lapse.
Annual Spending Milestone
Most card companies provide spending milestone rewards on their credit cards if you cross a defined spending limit. So you should be aware of the total amount of money spent through your credit cards if you want to benefit from extra reward points. If you are falling short of a small amount on one of your credit cards, you may use the same card for your next purchase to achieve the milestone spending and get the extra reward points added to your account.
Redeem Your Credit Card Reward Points Regularly
Now you know that all the reward points don’t expire at once. They expire gradually. If you have accumulated many reward points, you can start redeeming them at regular intervals to avoid expiry. Sometimes people keep spending through their cards, and they don’t notice when reward points accumulated on such spending will expire. If you redeem reward points at a regular interval, the reward points accumulated first will be utilised first. This way, you’ll be able to use your reward points effectively.
Use Tracking Apps
A few mobile apps allow you to link multiple credit cards and keep track of their reward point expiry dates. It can be useful, especially when you have multiple credit cards. Such apps usually require your credit card details to track the reward points, so you should select them carefully after verifying their authenticity of such apps. Credit card rewards can be highly beneficial for people who often use their cards for most of their spending. Most credit card companies offer reward points upwards of 0.5% of the spend, and you may not want to lose them. By tracking reward points carefully, you can easily avoid them from lapsing.
Lastly, the rewards will only make sense if you are timely with your card repayments. If you earned these rewards by maxing out your card and paying interest, they would cease to have any value. Therefore, always repay your card dues in time and in full every month. This will also help your credit score and unlock more premium benefits and credit cards basis your improving creditworthiness.
(The author is CEO, Bankbazaar.com)