The 33-year-old believes that it can be difficult to shake off the tag of failures as the Baggies head into their final five games just three points above the relegation zone.
"If you're moving on at the end of the season, if you're going back to your own club, if you're out of contract or even if you're retiring, relegation is no good to anyone," Reid told members of the media.
"No matter what your agenda or your thinking is going into the summer, relegation is not going to look good on the CV.
"Staying in the league is going to help your personal contract situation and your future."
West Brom take on Manchester City in their next fixture on Monday night.