Protecting Rewards AND your APR

Yep, I'm afraid I've heard more than one grown man cry on my shoulder. I'm not talking about my brother after going through the latest loss of female companionship. (No names, but you know who you are!)

The guys who have cried on my shoulder are not barflies at the corner pub, but clients I have dealt with who have lost their rewards. Got rewards? Great, aren't they? We all love extra perks, right?

If so, this message is for you. DO EVERYTHING YOU CAN TO GET YOUR PAYMENTS IN ON TIME. Now, most of us are fairly conscientious, and if you're like me, you might even consider yourself a bit obsessive about bill paying. I paid rent and auto payments weeks early for years. My landlords always loved to see me and I usually received very prompt repairs, whenever necessary. Still continue that habit to this day, creating my lovely FICO score of 755. Not too shabby. And don't tell me yours is 1000 please. Anything over a 750 is excellent and it only goes up to 850.

If you don't what to have the conversation with me that begins, "I'm sorry your last payment was 7 days late," then pay your bill on time. Easier said then done? Even easier folks. PLEASE listen here. Attention cardholders with rewards, this is for YOU:

If you don't want to risk losing those rewards, take some steps to avoid losing them. Now I know about 99 percent of everyone is conscientious and makes every effort to get the paper check in the Pony Express (I mean the mail) before the due date, but things happen. I call that life folks. Even yours truly has seen a late payment or two in the last 10 years. But I have never forfeited rewards.

If you have a rewards account, consider these options:
- Arrange for an automatic electronic debit schedule (on a monthly basis) from your checking account using the Billpay option at your bank's website. This takes all of a minute and most sites will even allow you to create an email reminder to self.
- Consider working directly with your credit card company, or financial institution, and perhaps allow them to electronically debit the payment from your checking account. You can sometimes arrange a minimum payment on your account, the balance in full every month, or perhaps a specified dollar figure.
- Don't want to mess with Internet banking and don't want to authorize your credit card company to dip into your checking account? Then you may want to talk to someone at your bank and have them arrange an automatic debit on a certain day toward your account. I'd recommend shooting that out a week before the due date. If that's not a possibility, ask your credit card company if they can move your due date. Or, perhaps consider making two payments or more on the account. Been there, done that. Doing it now.

Things to think about. You don't want to put that new Harley Sportster on your rewards card and then miss your due date the following month by a day, perhaps forfeiting 15,000 points or miles (on a 2-fer card). I'd cry too, if I lost that. Just food for thought.-SH