Credit card reward points expiring? Why you should avoid unnecessary spending

Credit card reward points can help save money during the festive season, but redeeming points that are about to expire should not lead to unnecessary spending. Check expiry dates, compare redemption options and understand restrictions before deciding whether to use your rewards or let them expire.

During the festive season, credit card reward points can help cardholders save money on e-commerce purchases, travel, everyday spending and other expenses.

However, when these points approach their expiry date, credit cardholders may feel pressured to redeem them before they lose their value. This raises an important question: Should you make a purchase simply to avoid losing your rewards? How should you handle expiring points, and what strategy should you follow?

The answer depends on the available redemption options, the value of the points, and an individual's budget. Spending more than planned to redeem expiring rewards can strain finances and potentially affect a person's credit profile if it leads to higher outstanding balances or missed payments. It can also defeat the very purpose of earning reward points.