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At a moment of uncertainty, Fed likely to leave rates alone

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Cosgrove to run for Commonwealth Court

<p>While some things were intended to be collected, including stamps, coins, and baseball cards, credit card rewards are not among them. Unfortunately, many credit card holders have discovered the hard way <a href="http://twocents.lifehacker.com/don-t-sit-on-your-credit-card-rewards-1789790903" target="_blank">that hoarding credit card rewards</a> can result in a loss of value. In some cases, attempting to hold onto those rewards for an extended period of time can cause you to lose them altogether.</p><p>The loyalty programs operated by credit card issues can beneficial for helping cardholders to earn perks. Even so, sitting on a stash of rewards for whatever reason can expose you to a number of risks, including devaluation, inflation, and having your rewards forfeited. One of the most common reasons that many people attempt to hold onto their rewards is because they are saving them for some point in the future. If you hold onto your points for too long, however, you may never be able to use them at all.</p><p>This is because a credit card issuer can take away your rewards just as quickly as they issued them. One day you have the points and the next day you don&#8217;t. Even though this policy might not seem fair, it&#8217;s entirely legal for a credit card issuer to close an account for practically any reason. They do not even need to give you advance notice that they are going to do it. Following the financial crisis in 2008, credit card issuers closed an astounding number of accounts in order to prevent defaults.</p><p>Credit card issuers <a href="http://abcnews.go.com/GMA/MellodyHobson/story?id=7553348" target="_blank">can also change the terms</a> associated with your loyalty program at any time. Some of the more common reasons for doing so include competition, increasing expenses, and financial pressure, but in reality, your credit card issuer does not need a valid reason for changing the terms of your loyalty program.</p><p>Cost-cutting has proven to be a major factor in frequent flier programs over the past three decades. When such programs were <a href="http://www.webflyer.com/company/press_room/facts_and_stats/history.php" target="_blank">first introduced in the early 1980s</a>, they were astoundingly generous compared to today&#8217;s standards. Now, participants find that availability is far more limited. As a result, the value of airline miles has decreased dramatically.</p><p>Inflation is another factor affecting credit card rewards. Rising prices are simply a fact of life. While you probably won&#8217;t have to worry about award ticket prices increasing overnight, it is still a <a href="https://lendedu.com/blog/best-airline-credit-cards" target="_blank">factor that will affect the value</a> of your rewards if you try to hoard them. The simple fact is that the longer you hold your rewards, the more you will lose in terms of purchasing power. Regardless of whether your credit card issuer never changes the program rules, you still must cope with inflation.</p><p>Rather than trying to hold onto your rewards indefinitely, there is a better way to manage your rewards to ensure you maximize their value while avoiding losing them. Begin by keeping an eye on your rewards and when you see they have begun to accumulate, be on the lookout for bargains. If you see a good deal, do not hesitate to take it. Loyalty programs often send out promotional emails, so don&#8217;t be so quick to delete them. Instead, take the time to scan through the email. You never know what you might be missing. Travel-booking comparison apps can also be beneficial for helping you to scope out deals.</p><p>For cash back rewards, try investing in your rewards. It can be tempting to spend cash-back rewards, but instead, try putting it away in a savings account where it will earn interest. This is a great way to offset the effect of inflation and making sure you get more for your rewards.</p><p>Another way to manage your rewards is to <a href="http://www.getrichslowly.org/blog/2013/08/13/redeeming-your-credit-card-rewards-what-do-you-do-with-them/" target="_blank">sign up for auto-redemption</a>. This feature allows you to redeem rewards automatically. There is no effort required on your part. Not all programs offer this option, but for those that do, it can be well worth it to avoid the risk of losing your rewards. If your program doesn&#8217;t offer this feature, set up a reminder to redeem your rewards once monthly. Doing so can help to ensure you do not find yourself the victim of a surprise a few months down the road when you log into your account.</p><style>
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<div class="metaInfo"><bylineMeta><p>By Jack Nolan</p><p>LendEDU</p></bylineMeta></div>

Are you hoarding credit card rewards from last year?