Editorial Policy

Miss a Payment and You Might Lose Your Rewards

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By Steven Gibbs
October 11, 2009

Did you know that all major credit card issuers have a clause in some form or fashion that states that can revoke reward points earned if the account is delinquent? If you are like many Americans you do not, and yet this is written in the cardholder’s terms of agreement.


While some credit card issuers will only cancel the points that were accumulated within a certain billing cycle, others are stricter and will revoke all points earned within the cardholders account. So can credit card issuers do this? Although it is probably not the answer you want to hear, the answer is yes. When you signed your name on the dotted line to receive the card, you accept this as a term although it may not seem fair.


If you are like me, the benefit of the reward credit card was probably one of the sole reasons for getting that particular credit card. So losing any points no matter how small would really defeat the purpose of using the card. Although many people do not ever want to think about missing a payment, it is something that may happen. If this is a concern, may I suggest a card where you can switch your points into cash back rebate check? If you think that you may miss a payment you can simply request a cash back rebate check before the due date and at least have something instead of nothing.