4 Ways You Can Lose Your Credit Card Rewards Points

Many people use rewards credit cards to pay for everyday purchases. You can use these credit cards to earn points, miles, or cash back rewards. But can you lose the credit card points in your rewards account?

Many credit card rewards programs don't allow points to expire. So, if you follow the rules outlined in the rewards program terms and conditions and keep your account open and active, you won't lose your points due to expiration. You should review your card's rewards program terms to confirm.

However, in some cases, you could lose the credit card rewards you worked hard to earn. You need to be aware of the ways you could lose your points so you can take steps to keep that from happening. Here are a few reasons you could lose your credit card rewards points.

1. Closing your credit card account

Don't close your credit card account without checking to see if you have unused rewards. You'll likely lose them when you close your account. Many credit card rewards programs' terms and conditions state that your rewards will be forfeited when you close your account. You can avoid losing your points by using them before you close an account you no longer use.

Another option is to transfer them to a different account through the same card issuer. Check to see if this is possible. It's likely an option if both credit cards use the same rewards program. If not, you should redeem your rewards before canceling your card.

2. Having your account closed due to misuse

Your credit card issuer can close your account. To be clear, credit card issuers aren't going around closing accounts for fun. Instead, they monitor account activity and close accounts when they detect misuse. Your rewards program terms will outline examples of why your account could be closed due to misuse.

Some examples may include buying or selling points, selling gift cards or items of value that you exchanged for points, or repeatedly opening credit card accounts solely for the purpose of generating rewards. Make sure you're following the rules so you keep your rewards.

3. Returning a purchase

Another way you can have your credit card rewards taken from your account is by making a return. If you purchase something with your credit card and later return it, the points you earned can be deducted from your rewards balance. One way around this is to ask the retailer if you can get store credit or a gift card instead of having the refund processed to your credit card.

4. Your account is in default

If your credit card account is in default, your credit card issuer can close your account and take your rewards. If you've stopped making payments altogether or have continuously missed payments, you're at risk for account closure.

Keep in mind that you likely won't have your account closed by missing one payment. But it's never a good idea to pay your bill late. It can impact your credit and you'll likely be charged a late payment fee. Stay on top of your credit card bills so your account remains in good standing.

Use your credit card rewards

This is a good reminder to use your credit card rewards. If you continue to let them sit in your account, you may risk someday losing them. But there's another reason you should use them sooner rather than later. Your points or miles can lose value with time.

Credit card rewards programs can change at any time, so it's best to use them as soon as possible. Before redeeming your points or miles, research available redemption choices to maximize their value.

Don't yet have a rewards credit card? It's not too late to get one. Check out our list of the best cash back credit cards to explore some popular rewards credit card options.