How long do you hold on to rewards for? (I'm a hoarder)

[Openwater]

So I was looking at the Penfed rewards and came across that I thought the rewards expired in 5 years. Turns out they might not, but it was brought up that 5 years is a long time to hold on to rewards.  So I questioned myself as I have horded points for a long time. My AMEX blue cash is my example, and I've horded those dollars since I got the card in 3/15. So I have almost $2K in rewards. 

It's kind of my savings for a big trip I want to take in a few years. Its it weird that I'm a rewards hoarder? Does anyone else hoarder their rewards, or is the norm to use them as you get them?

[Apple507]

I usually just get a statement credit for cash rewards and I don't hold them long. However, I am holding onto 200,000 Marriott bonvoy points to use once this pandemic is over and we can actually take a vacation.

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@Openwater wrote:

So I was looking at the Penfed rewards and came across that I thought the rewards expired in 5 years. Turns out they might not, but it was brought up that 5 years is a long time to hold on to rewards.  So I questioned myself as I have horded points for a long time. My AMEX blue cash is my example, and I've horded those dollars since I got the card in 3/15. So I have almost $2K in rewards. 

It's kind of my savings for a big trip I want to take in a few years. Its it weird that I'm a rewards hoarder? Does anyone else hoarder their rewards, or is the norm to use them as you get them?

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[wasCB14]

Travel redemptions can be trickier decisions, but there's no reason to let the cash sit there when it could be earning interest (or paying down interest-bearing debt) elsehwhere. You can always have a separate account just for travel money.

[Remedios]

Worst place for rewards is your account (I'm guilty of that), because they aren't "yours" untill redeemed. 

Try keeping in mind that lender can close your account at any time, for any reason, in which case your rewards might be forfeited. 

[wasCB14]

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@Remedios wrote:

Worst place for rewards is your account (I'm guilty of that), because they aren't "yours" untill redeemed. 

Try keeping in mind that lender can close your account at any time, for any reason, in which case your rewards might be forfeited. 

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Yes...lots of weaselese through which they can withhold the funds.

[RSX]

sometimes i hold onto mine for 2 full days before i redeem them...... - but usually it is on the same day i see them appear

i have the philosophy that i didnt really EARN them, and that they are a bonus that can be taken away - so i might as well get my use out of them right away

i have heard of some people losing theirs due to an account closure/AA - so why take the chance?

[K-in-Boston]

Agree that for cash rewards, I would get them out and at least put them in an account that you own as soon as possible.

For travel rewards, I tend to earn them and burn them.  That doesn't mean I don't have some rather significant balances, but at least with travel rewards there is usually an eventual big reward that may make any risk of devaluation or forfeiture a good gamble.

Coincidentally, I just posted an article yesterday where Amex's CFO was discussing cardmembers hoarding their travel rewards.

https://ficoforums.myfico.com/t5/Credit-in-the-News/Amex-Cardholders-Stockpiling-Points-and-Miles/m-...

[simplynoir]

Just depends on the amount of points/miles being saved and the risk tolerance - however small - on a possible account situation where you might not have access to them anymore. Cashback if redemptions options are not an issue (i.e. $25 minimum redemptions and so on) I'd take it out asap and put in a savings account, If you're hoarding a points equivalent award currency that you can redeem at 1cpp like URs I'd consider that as well. Any others I'd take inventory and look to use them sooner rather than later

[Remedios]

I view rewards that sit in my account same way I look at my kids... beautiful, costing me money, useless for the most part because they do nothing. 

[SanDiegoCredit]

I liquidate monthly. I'm a cash back guy and I've read my card member agreements. Several which state that you the customer, do not have property rights to the points. They are lost during account closure.  So cash them out and deposit them just to be safe and hopefully you'll earn interest on your deposits.