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Do you retain your factors and miles whenever you cancel a bank card?


We discuss journey bank cards fairly a bit right here at TPG. Making use of for and using these playing cards strategically can unlock unbelievable journey experiences like premium-class flights or luxurious resort rooms.

Nonetheless, there are a variety of misconceptions in terms of bank cards, so it is necessary to separate truth from fiction and debunk a number of the hottest myths on the market.

Here is what it’s essential to know in case you’re contemplating canceling a bank card however aren’t positive what is going to occur to the rewards you’ve got earned on it.

Factors and miles: Fast breakdown

Chances are you’ll assume {that a} bank card issuer is sort of a financial institution. You’d by no means count on Chase or Financial institution of America to easily maintain your money in case you shut a checking or financial savings account. Certainly the identical logic applies to bank card rewards, proper?

Sadly, the reply to this query is “not essentially.”

Usually talking, you possibly can divide your bank card rewards into two classes:

Let’s check out how simple it’s to carry on to every of most of these rewards.

Do you retain your factors and miles whenever you cancel a bank card?

For essentially the most half, you’ll not lose your factors and miles whenever you cancel playing cards that fall into the primary class of airline miles and resort factors, since they may usually put up to your loyalty program account inside every week or so of your assertion closing.

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As soon as they’re there, it turns into extremely troublesome for the cardboard issuer to attempt to take them again in case you cancel the cardboard.

Associated: What to do earlier than you shut a bank card

ISABELLE RAPHAEL/THE POINTS GUY

Nonetheless, canceling a card within the second class, which earns rewards inside an issuer’s proprietary program, might end in a forfeiture of your factors. That is as a result of these accounts (and their content material) are owned and managed by the issuing financial institution.

Exception: New York state regulation

One exception to the above: Should you stay in New York state, you will now have a little bit of a grace interval when attempting to redeem rewards on a canceled card.

As of December 2023, New York regulation states that “bank card issuers have 45 days to supply discover to cardholders when any current bank card account or rewards program is canceled or closed or modified in a manner that’s much less favorable to the buyer.”

Moreover, “shoppers have 90 days to redeem their accrued factors or rewards.” In different phrases, you will obtain a 90-day grace interval after your account has been closed to redeem any factors or miles you may need.

Factors and miles insurance policies by issuer

Listed here are some insurance policies to remember relying on the issuer:

American Categorical Membership Rewards

Coverage: Membership Rewards factors are instantly forfeited whenever you cancel a card and do not have one other card that earns Membership Rewards factors related to that account.

Exceptions/workarounds: Per this system’s phrases and circumstances, you’ve a 30-day grace interval during which to redeem your Membership Rewards factors when you have at the least one different (non-Membership Rewards) American Categorical card. Nonetheless, in case you cancel your solely Amex card, your factors shall be instantly misplaced.

Capital One miles

Coverage: While you shut your account, you’ll lose any rewards you haven’t redeemed.

Exceptions/workarounds: Capital One gives large flexibility in terms of shifting your rewards previous to canceling a card. In case you have one other card in your account that earns Capital One miles, you possibly can log in and choose the “Transfer Rewards” possibility from the rewards web page.

You may also transfer your miles to a different Capital One cardholder — who does not even have to stay at your identical deal with. You do have to name to perform this, as there isn’t any manner to do that on-line, although.

Chase Final Rewards

Coverage: Final Rewards factors are forfeited when your account is closed, although the phrases and circumstances point out that you will have at the least 30 days to redeem the factors from the date of closure in case your account is in good standing on the time.

Exceptions/workarounds: Along with the 30-day grace interval, in case you, a partner/home companion or enterprise proprietor (for Ink enterprise playing cards) have one other card that accrues Final Rewards factors, you possibly can switch your factors to their Final Rewards account earlier than closing your individual.

That is additionally an effective way to transform cash-back factors into full Final Rewards factors. Simply be aware that you could be have to name to perform this.

Citi ThankYou Rewards

Coverage: Citi ThankYou factors are forfeited 90 days after you cancel a card if you do not have one other card that earns ThankYou factors related together with your ThankYou Rewards account.

Exceptions/workarounds: Should you mix your rewards with these from one other account that continues to be open, it’s best to be capable to redeem or switch them to one of many program’s airline or resort companions. If you do not have one other Citi ThankYou account open on the time of account closure, you’ll forfeit your factors after 90 days.

ThankYou Rewards additionally means that you can share factors with a pal or member of the family who can also be a ThankYou member. Nonetheless, you are restricted to 100,000 factors per calendar yr, and all shared factors have to be redeemed inside 90 days.

Backside line

Canceling a bank card could also be value it to keep away from an annual price in case you now not use the cardboard, but it surely’s important to understand how that may have an effect on the factors or miles you’ve got earned (however have not redeemed) on that card. Whereas most airline- and hotel-specific playing cards will not take again the factors which have already posted to your account, many playing cards affiliated with a selected issuer will not be as forgiving.

Redeeming these factors earlier than canceling is your greatest guess, however you even have a couple of further methods to maintain them in your possession or share with different cardholders.



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