How long to use banked points?

[jaurban]

We are looking at purchasing resale and see contracts that say e.g. Feb use year, 242 points currently available (200 + 42 banked from 2006) and 200 coming on Feb.1, 2008. (Example only, not from a listing). Does that mean that if we bought this we would have to use all 242 before 2/1/08 - or only 42?

Confused.

 

[Caskbill]

No, you would only have to use the 42 banked points because they cannot be banked again.

The current year points (Feb 2007 allocation) can either be used this use year (Feb 2007 thru Jan 2008), or they could be banked into the 2008 use year where they would have to be used between Feb 2008 and Jan 2009, or you could use some this year and bank the remainder.

Note the banking deadline is 6-months to bank 100% of points. Which means for a February contract they would have to be banked no later than the end of July this year.

You were just giving an example, but the capability to bank 100% of points will depend on the use year month you're looking at, as to that year's specific banking deadlines.

 

[jaurban]

Thank you. So, the value in the contract and use year for us will make a difference in looking at the point use of what is there now. I just don't want to buy and find out I really can't use what is there.