Hi all. I have a couple questions related to travel expenses.
1. What happens if I try to redeem an old travel expense that is higher than my current credit card balance?
2. If my billing cycle has closed already, and I am enrolled in auto-pay, will redeeming an old travel expense affect my auto pay deduction?
I have been searching all over trying to find an answer to these questions but I have not been able to find any answers yet. Thanks as always.
If you redeem for more than what your current balance is, you will temporarly go into a negative balance due on your credit card. That's not a problem. Assuming you use the card regularly, you will soon enough have new charges that will counter that. If for some reason you don't plan to use the card more, you can get a check for the negative credit balance.
This happens all the time in any credit card program; for example, when merchanise is returned, a refundable booking is cancelled, etc.
From my experience, the autopay will go for the amount of the statement balance that was stated on the closing date. The credit you earn after that date from redeeming a travel expense will be applied to the next statement.
Thanks for the reply. That was my suspicion, but I had not yet found confirmation in the T&C.
I have a travel expense that will expire in a few days. I might go ahead and use most of my miles to write it off and let my statement close in negative territory.
Hopefully with some more writing, I can build up my miles for my next trip, which is just around the corner.
This is a great question, BelfryBat. As long as you have the miles and the transaction is still on your rewards to redeem against, you will be able to redeem for the full amount. This will leave a credit balance on your account. Where a statement credit does not constitute a payment the repeated payment may still process. We would advise you to process a one-time cancellation of the payment. This will not cancel out any future repeat payments. We hope this information helps. Please let us know if you have any additional questions or concerns. Thank you. ^DJ
Thanks for the reply. I appreciate the confirmation of my suspicions.
I decided to redeem most of the expense. I'm enrolled in auto-pay so I don't have to worry about the late payment issue. The expense was going to expire in a few days so I wanted to go ahead and claim it while I could. I think I timed it just right.