Yes, this is true. Starting in 2010, unless you pay your bill on time, you may not get the points/rewards you earned making purchases on your credit card for the month you paid late. You may be able to get the rewards back, but it may also cost you to do so.
American Express Co., for example, is charging a $29 reinstatement fee if you want the rewards back. This fee is in addition to the late payment fee of $19 or $38, depending on your balance.
Points earned on Citibank credit cards may not be redeemable if card holders pay late one month, and in some cases a fee for reinstatement may apply (co-branded cards like American Airlines and Hilton will not have reinstatement fees).
As for JP Morgan Chase's co-branded United credit card, customers will not earn miles until the account is paid.
To avoid losing airline or hotel rewards earned on your credit cards, make sure to pay on time. Managing your account online is a good approach, since you can take advantage of electronic payments and online bill pay. Also be sure to read the fine print and to open any correspondence from your bank immediately, since terms and conditions change all the time.
Search the Knowledgebase
Browse by Category
The article has been updated successfully.
