Maria M., a reader of CreditCardsMojo.com asked us:  “Are my credit card rewards with [redacted] safe?”
Great question Maria!  We have done some research, and called and emailed some very smart people in the industry, and the answer is:  “Probably, but it depends”.

Let me explain:  there are three major categories of rewards

• Airline Miles
• Cash Back/Rebate
• Points and similar rewards

In case of Airline Miles, the issue might arise with the fate of the Airline for existing miles, and not with the credit card issuer, unless you are concerned with your ability to continue earning miles.

In the case of Cash Back/Rebate, and Point rewards, when a credit card issuer that is a bank is taken over by another bank, without filing for bankruptcy, operations continue and slowly are integrated into the acquirer’s operations, so the credit card holder should have a long notice of things coming down the pipeline.   When a credit card issuer files for bankruptcy, the issue gets a bit more complex, since depending on which state you live, which state the issuer has the charter, and the terms and conditions, you might risk losing something there.

While Cash Back / Rebate rewards  are probably safe, the general consensus here at CreditCardsMojo.com is that you should keep an eye on your balance, and have the credit card company send you a check as soon as you hit that threshold, so that you can save it, use it to pay some bills, or spend it and reward yourself!
For the points, why not enjoy them now? Week-end away, hotel stays, restaurant meals, magazine subscriptions are all welcome now that most people are on a budget.  Enjoy them, you’ve earned them!

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Photo Credits: Wm Jas (cc)