Earning points and miles through your credit card is one of the best ways to get more value from your everyday spending. But while many people focus on accumulating rewards, they often overlook the mistakes that can wipe out months — or even years — of careful earning.
Here’s a look at 10 common pitfalls that could be costing you your hard-earned rewards, and how to avoid them.
1. Letting Your Points and Miles Expire
It seems obvious, but thousands of people lose rewards every year simply because they expire. Each loyalty program or credit card issuer has its own expiration policy. Some expire after 12 or 24 months of inactivity, others never expire but may be forfeited under certain conditions.
✅ How to avoid:
- Set reminders in your calendar for expiration dates.
- Make small qualifying transactions or transfers to keep accounts active.
2. Using the Wrong Card for the Wrong Purchase
Not all purchases earn the same rewards. Many cards offer bonus categories like 3x on dining or 2x on travel, but only 1x on everything else. If you’re not using the optimal card for each type of spending, you’re leaving rewards on the table.
✅ How to avoid:
- Make a small cheat sheet of your cards and their bonus categories.
- Keep it in your wallet or saved on your phone.
3. Not Meeting Minimum Spend for Sign-Up Bonuses
A sign-up bonus can be the fastest way to earn thousands of points or miles. But these typically require spending a certain amount in the first 3-6 months. If you fall short, you miss out on a huge boost.
✅ How to avoid:
- Time your new card with upcoming expenses (like insurance payments or home improvements) to easily meet the minimum.
4. Redeeming Points for Low-Value Options
Many programs let you redeem points for gift cards or statement credits, but often at poor rates (like $0.005 per point instead of $0.01 or more). Flights or hotel stays usually offer much better value.
✅ How to avoid:
- Calculate the cents-per-point value before redeeming. Aim for at least $0.01 per point or mile.
5. Ignoring Transfer Partners
Some of the best value comes from transferring credit card points to airline or hotel partners. If you only use your points within the credit card’s travel portal, you might be missing out on significant upgrades.
✅ How to avoid:
- Learn which transfer partners give the best value for the trips you want.
6. Paying Interest or Fees That Wipe Out Rewards
If you carry a balance and pay high interest, the rewards you earn are quickly erased. Likewise, foreign transaction fees can eat into your rewards when traveling.
✅ How to avoid:
- Always pay your balance in full each month.
- Use cards with no foreign transaction fees when abroad.

7. Not Keeping Track of Multiple Programs
If you have several credit cards and loyalty accounts, it’s easy to forget where you’ve accumulated points — or lose them due to inactivity.
✅ How to avoid:
- Use a free tool or spreadsheet to track your balances and expiration dates.
8. Not Combining Household Points
Many programs allow you to pool points with a spouse or family member. If you’re not taking advantage of this, you could be wasting opportunities to reach high-value redemptions sooner.
✅ How to avoid:
- Check if your airline or hotel program allows free transfers or pooling.
9. Missing Out on Promotions
Card issuers and loyalty programs often run limited-time promotions — like 5x on grocery stores or 50% more value when booking through their portal.
✅ How to avoid:
- Sign up for email alerts and review promotional emails instead of deleting them automatically.
10. Closing a Card Without Redeeming Rewards
When you close a credit card, you often forfeit the points tied to that account. This is common with bank points (like Chase Ultimate Rewards or Amex Membership Rewards) that aren’t automatically in an airline or hotel program.
✅ How to avoid:
- Redeem or transfer your points before closing the card.
- Consider downgrading instead of closing to keep points intact.
Don’t Let Small Mistakes Cost You Big Rewards
Maximizing your credit card points and miles takes some planning and awareness. By steering clear of these common mistakes, you’ll protect the rewards you’ve worked hard to earn — and turn everyday spending into unforgettable experiences.