Gigantic point amount on rewards card - what are potential consequences?
"I can't give you proper legal advice, but if I called their customer service and used half an hour of my time to wait and explain the situation in detail, and their official response was ""just use the points,"" I would do just that. Of course you would have stronger legal standing if you had recorded their answer, or had it in writing from them. But I don't think spending these points will come crashing down on you. And morally I see absolutely no problem with spending these points; it is not as if you are stealing from someone else. These points can usually be given away in any kind of crazy manner. Sometimes there are lotteries or events where they give away 100,000 points for new customers who open up an account on a specific weekend. Sometimes they give points to customers who want to terminate their contracts as an attempt to coax them into staying. They have given you a lot of points and don't really care. As a result you are probably staying their customer forever – and will most likely tell this story to many friends. This is free advertising for them. Heck, maybe they would even make a news story out of this some day, it could be good publicity. Everyone is essentially getting these points ""for free"" but in fact the company has a business case by improving their image and customer retention with these points. So you can spend these points with a sound mind morally. Legally you would have to contact a lawyer, but I think chances for legal repercussions are small if you have done your duty, informed them and their customer service basically said it's ok." I would behave exactly as I would expect it from others. If you were the one giving away too many points by accident you would be thankful if somebody notifies you about this error. You can write a letter or call them. I would not use the points (of course only not use the points which are added in error). Other options are possible but I would advise against them. It's just about fair play and the points are clearly not yours. If you want to maximize your expected benefits, at minimal risk of financial repercussions or sleepless nights, I would suggest the following. Send an email explaining the situation, and announce that you plan to use the points if they do not advise otherwise. Here is an example message: Dear sir/madam, I recently contacted your helpdesk to mention that I believe my points   balance is higher than it should be, and I was told that I could   consider the extra points a gift. I assume that settles it, but in   case I am mistaken please contact me within 4 weeks. My customer   number is xxxx. Kind regards, Note that it is no problem if they don't reply, but you may want to push for a (possibly automated) confirmation of receiving your message.  I would not be surprised if they still reduce your balance sometime in the future, but you should be reasonably covered if they try to reclaim any points that you already spent. Of course, as a 'good' person (or maybe a 'stupid' person), I should call them, (wait 30 minutes in the queue), and then try to explain the issue to the service desk. I actually did that, and the guy thought I am nuts to even call, and told me to 'just use them they are yours now'. I don't feel like calling again and again until I get someone that believes it, just to return them their points. Calling generally does not solve this problem. You would need to write a letter using certified mail and send some reminders. Hopefully they should notice it, if not you at least have evidence that you have communicated. I could just toss the card and forget about it. However, I had quite some points on it that really belong to me, so that feels like I pay for their fault. There is no need. You can continue to use the card as usual. Use them and play stupid. This is not a good idea. They are clearly not yours. Somewhere in Terms and Conditions you will find some fine print about notifying Bank/Financial Institution about the errors. Best course, after intimating informing them via letters, keep using your card as normal and use your points as normal. You would roughly know your points balance. "An ideal option for you would be to use as many or as few as you choose, but have all of them available to you. The service desk guy told you you can do exactly that. Problem, though: you have no proof that a representative of the company told you that. Get proof. Recording, written statement, whatever. If writing a letter, make it clear you expect a response. The time you spend ""being a good guy"" is not free, you should get something for it. No idea how to go about that - mentioning the service desk guy in a letter might give him trouble. Maybe suggest that you could allow your image to be used in a short advertising campaign, as thanks. But whatever you do get, enjoy it. Consequences? Any number of things can happen, from lifetime free meals to court cases, negative points and being banned, regardless of who is right, legally or morally. Someone in Management there might still choose to burden you with responsibility even if their own CEO declared you a saint and lifetime customer of honor. But you might never get to that bridge. For now, get proof, and use what points you know are yours anyway." "First IANAL! This is going to depend on the kind of points. If it's an internal point system that the business is doing on their own, then they may very well, give you that many ""extra"" points. They may really not care. Specially if the cost of the points is low enough. Remember that steak dinner that you paid $60 for only really cost them $2 and that they use $60 worth of points on it.  If the point system is tied to a bank or credit card, then it's far more likely that the ""just use them"" is not the proper answer. The company doing the reimbursing is giving the location $60 and using your points. The points have a much higher value.  With that said, your responsibility is to notify, and follow their rules. So notify them in writing, and use the rewards card as you normally would. If your being honest, then the worst that happens is that your point balance is a little negative (because you spent 100 points but really only had 98 after adjustment).  Most likely, if your being honest, they will just eat the few points over that you went on accident.  If you get an answer in writing to just keep the points, then I guess you know where your daughter's wedding reception will be. Let's hope it's a classy place. Of course, as a 'good' person (or maybe a 'stupid' person), I should call them, (wait 30 minutes in the queue), and then try to explain the issue to the service desk. I actually did that, and the guy thought I am nuts to even call, and told me to 'just use them they are yours now'. I don't feel like calling again and again until I get someone that believes it, just to return them their points. You will want to do this in writing. Email will work, but you really want a paper trail, either way. I could just toss the card and forget about it. However, I had quite some points on it that really belong to me, so that feels like I pay for their fault. There is no need to do this. It's like a bank error. Talk to them and they will give you an answer. In the mean time, do your best to only use the points you actually have. Use them and play stupid. It's not my duty to check their math, right? Probably nobody will ever care (let's keep religious considerations out here). What would be the consequences if they do realize their error some day in the far future? (I understand this borders on a legal question). Nope, don't do this. If you play dumb and spend 5000 points when you know you only have around 100, best case scenario you end up with -4900 points (effectively canceling the benefit of the card). You may also be banned form the program, the location, the network, etc. Worst case scenario they want the monetary value of the points and sue you for it, and the legal fees. It may even be considered fraud.  TL;DR Use your card, but be honest, and handle the mistake in writing." "Most likely scenario (A): You spend tons of time and effort talking to them, with the end result that they take away the extra points.  You feel screwed having to do their job for them - they've given you no benefit for looking out for them, and you're left with the points you've earned but maybe less desire to go back and use them. Most likely scenario (B): You just use the points, they eventually figure out the problem and fix it.  They send you a nasty letter, demanding some sort of compensation that they have no legal obligation to (because points are not money, you will have rendered existing points for service, and they have, per your existing phone call which can be substantiated in existence though not content through phone records, confirmed that they are yours) - they may go so far as to bar you from their premises.  If you don't use enough points to go ""negative"" before they fix it, you may avoid this. If they can deal with this competently from a customer service/PR standpoint, then in scenario (A) they may understand you quickly, and they may leave you with some extra points for your trouble.  In scenario (B), pretty much the same thing - they'll let you have the points you used and even leave you a little extra. I suggest in either case you only engage in written communication with them or, if your jurisdiction allows it, record voice conversations.  You need a record of what you've been told." "What would be the consequences if they do realize their error some day   in the far future? You've informed them of the error and they've informed you that nevertheless the points are yours and you should use them. So you have a couple of issues: have you made what your jurisdiction considers a reasonable effort to correct the mistake, and did the customer service rep actually have the authority to make such a large goodwill gesture as letting you keep all the points? The first is your legal responsibility (otherwise you're stealing), and you need to know specifically for your jurisdiction whether a phone call is sufficient. I can't tell you that. Maybe you should send them a letter, maybe you should wait until you've had written confirmation from them, maybe you're OK as you are. You might be able to get free advice from some body that helps with consumer issues (here in the UK you could ask Citizen's Advice). The second is beyond your ability to know for sure but it's not dishonest to work on the basis that what the company's proper representative tells you, is true. With the usual caveats that I'm not qualified to give legal advice: once told you've been clearly told that it's an intentional gift, I don't see any way you could be held to have done anything fraudulent if you then go about enjoying it. The worst case ""far future"" problem, I would expect, is that someone decides the gift was never legitimately made in the first place. In other words the company made two separate errors, first crediting the card and then telling you the erroneous points stand. In that case you might have to pay them back whatever you've spent on the card (beyond the points you're entitled to). To avoid this you'd need to establish what constitutes a binding gift in your jurisdiction, so that you can say ""no, the point balance was not erroneous and here's the legal reason why"", and pay them nothing. You might also need to consider any tax implications in receiving such a large gift, and of course before paying tax on it (if that's necessary) you'd probably want to bug them for confirmation in writing that it really is yours. If that written confirmation isn't forthcoming then so be it, they've rescinded the gift and I doubt you're inclined to take them to court demanding that they stand by the words of their rep. Use them and play stupid. It's not my duty to check their math, right?  That's potentially fraud or theft if you lie. You did notice, and even worse they have proof you noticed since you made the call. So never say you didn't notice. If you hadn't called them (yet), then you've been given something in error, and your jurisdiction will have an opinion on what your responsibilities are. So if you hadn't already called them, I would strongly suggest that you should call them or write to them about it to give them the opportunity to correct the error, or at least seek assurance that in your jurisdiction all errors in the customer's favour are final. Otherwise you're in the position of them accidentally handing you their wallet without realising, and you deciding to keep it without telling them. My guess is, that's unlikely to be a legally binding gift, and might legally be theft or fraud on your part."
"Or here's a better idea: don't have a credit card at all.  They offer no real benefits and plenty of dangers.  Don't take my word for it, though: ""I tell every student class I get, high school students, university   students, you know, they'd be better off if they never used credit   cards""   - Warren Buffet (Net worth: $44 billion) Before anyone says anything about using credit cards ""wisely"" and getting the rewards points, I can save 15% on many kinds of large purchases ($100+) using cash.  You won't find a reward system offering that level of incentive.  Two recent examples of cash discounts: After I bought my house I needed a lawnmower and a my wife wanted a new vacuum cleaner.  Went to Lowe's and found the ones we wanted.  They were $600 combined.  Found the manager, stuck five $100 bills in his hand and said ""this is what I have, and that is what I need.""  16.6% saved. Bought my daugher a bed recently. Queen box spring and mattress were on sale for $300 but it didn't come with the rails, which they wanted $50 extra for.  Went to the bank and got $320 in cash from the bank, walked in, set it in his hand and said, ""I need the bed box spring and rails, tax included.""  He replied, ""Sorry man, I can't.  I'm already taking a loss on..."" Then he stopped mid sentence, looked down at the cash again and said ""Hold on. Let me ask my manager."" Manager walks over, guy explains what I said, manager looks at the cash and says ""Make it happen""  14.3 % saved. As for purchasing a home, it is a myth that you need a credit score to obtain a mortgage for a home.  Lending institutions can do manual underwriting instead of just relying on your credit score.  It is a little tougher to do and banks usually have stricter requirements, but based on the information the OP has given in this and other questions, I think he can easily meet them." First and foremost you should do more research on credit cards and what everything means.  As expressed by others the balance transfer fee is not what you think it is.  Credit cards can be great, they can also quickly erode your credit score and your standing.  So understanding the basics is VERY important.   The credit card that is right for you should have the following criteria.  The first two points should be straight forward, you should not have to pay a CC company for the privilege to use their card.  They should pay you through perks and rewards.  It should also be a CC that can be used for what you need it for.  If you travel internationally a lot and the CC you choose only works within the US then what good is it? The third point is where you need to ask yourself what you do a lot and if a CC can offer rewards through travel miles, or cash back or other bonuses based on your lifestyle.  The transfer fee is not what you think it is, people who already are carrying debt on another credit card and would like to transfer that debt to another credit card would be interested in finding a fee or a low %.  People do this to get a batter rate or to get away from a bad credit card.  If one charges 28% and another charges 13%, well it makes sense to transfer existing debt over to the 13% provided they don't crush you on fees.  Since you have no credit card debt (assumption based on the fact you want to build your credit), you should ask yourself for what purpose and how often do you plan to use the credit card.  Would this card be just for emergencies, and wont be used on daily purchases then a credit card that offers 3% cash back on gasoline purchases is not for you.  If you however love to travel and plan to use your credit card for a lot of purchases OR have a few large purchases (insurance, tuition etc.) then get a credit card that provides rewards like miles.  It really comes down to you and your situation. There are numerous websites dedicated to the best credit card for any situation.   The final thing I will say is what I mentioned at the beginning, its important, CC's can be a tool to establish and improve your credit worthiness, they can also be a tool to destroy your credit worthiness, so be careful and make smart choices on what you use your card for.  A credit score is like a mountain, it requires a slow and steady discipline to reach the top, but one misstep and that credit score can tumble quickly. There are lots of things to consider in addition to your questions.  The rules changed in the US recently. I think you mean you will save more money. Your interest rate isn't likely to go up, but your principle will, so you will earn more interest income than before.   I would wager it won't be a significant amount however. You can certainly earn a reward, either cash back, points, miles or something else. BUT the sticking point with earning things with your card is harder than before.  Due to rules changes, merchants can now recuperate the fees they pay for accepting your credit card.  Rewards cards have a higher fee than non-rewards cards (because banks aren't in charities).  So now, depending on the merchant's choice, you could see a higher cost paying with a credit card (or a debit card) and that cost could wipe out your reward. And if your card has a fee, it has always been true that you need to evaluate the annual fee to confirm the benefit is more than paying for the fee. Additional advantages to credit cards "The following is based on my Experian credit scoring feedback and experience here in the UK over many years.  (And for further information I currently hold a credit score of 999, the highest possible, with 6 credit cards.)  Now I'm assuming that while there may be some differences in particulars in your case due to the difference in locality nevertheless the below should hopefully provide some broad guidelines and reasonable conclusion in your situation: Having a large number of active credit accounts may be seen as a negative.  However having a large number of settled accounts should on the contrary have a positive effect on your score.  As you keep your accounts mostly settled, I think having another card will not be to your detriment and should in time be beneficial. A large total credit balance outstanding may count against you.  (But see the next point.)   Having your total outstanding debt on all credit accounts be a smaller proportion of your total available credit, counts in your favour.  This means having more cards for the same amount of credit in use, is net-net in your favour.  It also has the effect of making even larger outstanding credit balances (as in point 2) to be a lower percentage of your total available credit, and consequently will indicate lower risk to lenders.   It appears from my experience the higher the highest credit limit on a single card you are issued (and are managing responsibly e.g. either paid off or used responsibly) the better. Needless to say, any late payments count against you.  The best thing to do then is to set up a direct debit for the minimum amount to be paid like clockwork every month.  Lenders really like consistent payers. :) New credit accounts initially will count against you for a while.  But as the accounts age and are managed responsibly or settled they will eventually count in your favour and increase your score. Making many credit applications in a short space of time may count against you as you may be seen to be credit reliant.  Conclusion: On balance I would say get the other card.  Your credit score might be slightly lower for a couple of months but eventually it will be to your benefit as per the above.    Having another card also means more flexibility and more more options if you do end up with a credit balance that you want to finance and pay off over a period as cheaply as possible.   In the UK the credit card companies are falling over themselves trying to offer one ""interest free"" or 0% ""balance transfer"" offers.  Of course they're not truly 0% since you typically have to pay a ""transfer fee"" of a couple of percent. Still, this can be quite cheap credit, much much cheaper than the headline APR rates actually associated with the cards.  The catch is that any additional spending on such cards are paid off first (and attract interest at the normal rate until paid off).  Usually also if you miss a payment the interest rate reverts to the normal rate.  But these pitfalls are easily avoided (pay by direct debit and don't use card you've got a special deal on for day to day expenses.) So, having more cards available is then very useful because you then have choice.  You can roll expensive debts to the cheapest lender at your disposal for as long as they'll offer, and then simply not use that card for any purchases (while paying off the balance as cheaply as possible), meanwhile using another card for day to day expenses." The author sounds like a raging corporate apologist and so do most of the commenters here on reddit, which really surprises me.    If Target staff allowed customers to purchase gift cards as part of this promotion, then isn't it Target's fault for not training their staff properly with regard to how to handle this promotion?   (IANAL) "A ""balance transfer"" is paying one credit card with another.  You probably get offers in the mail to do this all of the time.  As other posters have noted, however, this usually comes with finance fees rather than the rewards that you get for normal purchases because it's written into your credit card agreement as a different class of transaction with different rules. I'm not sure if it's urban legend or true, but I have heard stories that suggest there were some ""loop holes"" in the earliest credit card reward plans that allowed for something like what you want.  I doubt that any plan ever allowed exactly what you've written, but I've heard stories about people buying gift cards from merchants and then using the gift cards to pay their bill.  This loop hole (if it ever existed) is closed now, but it would have allowed for essentially infinite generation of rewards at no cost to the cardholder.  The banks and credit card companies have a lot of years of experience at this sort of thing now, so the threshold for you finding something that works and conforms with the cardholder agreement is pretty small." There is another drawback, and this is why I keep a low-limit card for online purchases and another for carrying in risky/unfamiliar situations (e.g. travelling) a small limit acts as as damage limitation in the event of theft. In theory you may not be liable if your card is stolen and used.  In practice you may be out of pocket for a considerable amount of time, and trying to spend large sums on an overlimit card will soon trip it up (especially if those large sums are out of the ordinary) "What's going on here is that Amazon/visa thinks that the money they will earn on average from irresponsible credit card users is more value than 50$ each. This is the same logic that is behind the cash back or airplane point bonuses many credit cards offer, or the ""apply and get a free 2-liter of soda"" that some stores offer. I would need more information about the card to say whether or not you should apply (What are the fees, if any? What is the interest rate? etc)."