Credit card travel rewards are a very nice thing to have, but at the same time, they must be used wisely. One may want to save all of their travel points and miles to allow them to accumulate over time. On the surface, there doesn’t seem to be anything wrong with this strategy. However, there are other important reasons to consider why you shouldn’t.
They Can Suffer From Devaluation
Whenever an airline or a hotel loyalty programs informs you that your next stay will cost you more miles and points than before, whatever points you have saved up are devalued. The worst part is that devaluations are not always announced in advanced. For example, Alaska Airlines devalued flights on Emirates after it experienced a sale on miles with no prior announcement made.
If you manually hoard your miles over an extended period, the only feasible outcome that it will result in is becoming less valuable. This means that a flight that may cost 50,000 miles may now be around 75,000.
They Can Expire
Good things don’t always last forever, and unfortunately for reward points, they can expire. Many people are not aware that these points can expire, especially if there is no activity on your account for an extended period. Limits are generally reasonable, as no serious action will be taken unless around 18-24 months of no activity is seen.
However, if you keep them over time, there is an increasing likelihood that you may forget about them and have them expire. Credit card management can be very difficult, but if you want resources that can help you with low-interest rates and fair monthly payments, you could consult Alamo Associates for more information.
Award Availability Changes
You may be missing out on your travel rewards altogether if you continue to hoard them. This is because there are many airlines that do not permit points for first class bookings. In addition to that, partnerships change all the time, and with those changes come alterations in point allowance.
You also have to consider that there are many airlines that face financial stress or may not even be operating in another 12 months. Major hotel chains may stop making rooms available just through points.
Changes to reward and loyalty programs through your credit card changes all the time. You simply cannot bank on them staying for the long haul. You are taking a risk that can leave you empty in the end.
You Can Always Earn More
When you have been earning points consistently, it eventually becomes as natural as breathing. This can give you insight on how to balance credit inquiries, meeting minimum spending and your strategy for how to apply it. You will also have a better understanding of which cards that you should use at the grocery store or at the gas station.
There is no reason to hoard points and miles because you can always continue to earn more with enough consistency and wise credit card judgement. You could consult Alamo Associates, who are experts at providing excellent credit card service