Do you lose points and miles if you cancel your credit card?

Generally speaking, what happens to your credit card rewards when you close your account depends on the type of card you have and the specific rules set out in the respective rewards program. With this in mind, you should read the fine print of your credit card program before taking steps to close a credit card account that has a rewards balance.

However, there are a few general rules of thumb to keep in mind if your goal is to keep your points balanced. There are also steps you can take to ensure you don’t lose the points and miles you’ve worked so hard to earn.

Curious what will happen to your points and miles if you quit your credit card? Read on to find out what to expect and how to avoid accidentally losing your Reward Points.

What happens to points and miles if you cancel your credit card?

Canceling a credit card without a plan for your rewards can be a big mistake. After all, most bonus cards with their own programs claim that your points are only valid while your account is open. If you close your account without using them, you will almost always lose them.

When it comes to credit cards that earn reward points through their specific programs (for example, Chase Ultimate Rewards cards, Amex Membership Rewards cards, Capital One cards, etc.), you usually have two options for saving your points if you close the card – you can use them until canceled or make sure you have another card in the same program that will keep them “alive”.

Generally speaking, paying off your rewards is the smartest way to avoid losing them when you’re ready to cancel your credit card. If you don’t know how to redeem them, cash back cards, credit statements, and gift cards can help. After all, just about anyone can benefit from a cash back or multiple gift cards to use at their favorite stores or restaurants.

How having another card in the same family can help

Sometimes having another card in the same family can help you if you don’t want to use your rewards. For example, let’s say you have a Chase Sapphire Reserve card and a reserve of 60,000 Chase Ultimate Rewards points, but you don’t want to pay the card’s annual fee for another year. At this point, you can redeem your rewards for cash back, statement credits, gift cards, or travel through Chase—up to 50% more—before closing your account. You can also transfer your Chase Points to one of Chase’s partner airlines or partner hotels at a 1:1 ratio before closing your card.

However, if you also have a Chase Freedom Unlimited card, you can close the Chase Sapphire Reserve card without losing all your points. However, you will no longer be able to transfer your points to partner airlines and hotels without a Chase Pass Card, and you will no longer receive the 50% bonus on travel bookings through the Chase Portal when you close your reservation.

For some rewards enthusiasts, it may even make sense to sign up for a new credit card before closing the old one.

For example, let’s say you have a Platinum Card® from American Express and a pool of American Express Membership Rewards points. You don’t want to pay the annual fee on this card for another year, so what do you do?

In this case, you can subscribe to the Amex EveryDay® Credit Card from American Express*, which allows users to earn Membership Rewards points at no annual fee. By opening a new free account, you can safely close your Amex Platinum without losing any of your rewards.

What happens to points and miles if you cancel your loyalty program credit card?

While some rewards credit cards earn points in their own programs, co-branded credit cards work differently. For example, if you have an airline credit card or a hotel credit card, the rewards you earn will be credited to your loyalty program account no matter what you choose to do with your credit card.

Let’s say you signed up for an American Airlines credit card and earned 60,000 miles in the first year. Whether or not your credit card account is open, your American AAdvantage miles will expire after 24 months of inactivity.

However, it is important to know and understand the policies of your favorite loyalty program as they all work differently. Delta SkyMiles and United MileagePlus miles don’t expire, so you don’t have to worry about losing them no matter what. Meanwhile, World of Hyatt points expire after 24 months of inactivity, and the same is true for Hilton Honors points.

How not to lose points and miles

If you want to keep your credit card rewards in good standing so you can use them when you’re ready, you have plenty of options to consider. The following tips may help you avoid losing rewards, depending on your situation:

• Keep a credit card from the same issuer that earns the same type of rewards.. As mentioned, sometimes using a different rewards credit card from the same issuer can keep your points in good standing. Be sure to read the terms and conditions of your credit card program to be sure.
• Subscribe to a bonus card in the same program without an annual fee. If you want to keep valuable reward points without having to pay an annual fee, consider enrolling a rewards credit card in the same program that doesn’t charge it.
• Earn loyalty points for relevant actions. If you have points in your frequent flyer program or hotel loyalty program, you can restart your rewards hours with qualifying activity. This can include anything from paid flights or hotel stays to using your program’s or nutrition program’s shopping portal.
• Use your rewards before canceling. You can also simply cash out your rewards before canceling. Look for simple options like gift cards and merchandise that can help you splurge on something fun.
• Transfer points to another person. Some programs, such as Citi ThankYou Points, allow you to transfer points to other members. Just remember that transferred points sometimes have their own expiration dates. For example, in the case of Citi Points, total points are only valid for 90 days after they are earned.
• Transfer your points to another program you will be using. If you have flexible travel points, consider transferring them to your favorite airline or hotel program before canceling your card.
• Donate your points to charity. Keep in mind that many credit card reward programs allow you to donate points or miles to charity, which can be a great gift. For example, the American Red Cross can accept miles from American Airlines, Delta Air Lines, Southwest Airlines, United Airlines, and many others.

bottom line

If you have Reward Points in your account but need to cancel your credit card, make sure you have a plan in place ahead of time. By using your points, transferring your rewards to another person, or having another credit card in the same program, you can avoid those hard-earned rewards being wasted.

*All American Express Amex EveryDay credit card information has been independently collected by CreditCards.com and has not been verified or approved by the issuer.

Holly Johnson is a financial expert and award-winning writer who is obsessed with frugality, budgeting, and travel. In addition to being the editor of The Simple Dollar, Johnson owns Club Thrifty and co-authored Zero Your Debt: Get Your Income Back and Build the Life You Love.