Canceling a credit card might seem like a simple task, but if you’ve accumulated a stash of points and miles, closing the wrong card at the wrong time could mean losing valuable rewards.
Whether you’re trimming your wallet, avoiding an annual fee, or switching to a better card, it’s crucial to understand how canceling can affect your rewards — and more importantly, how to protect or recover them.
This guide walks you through everything you need to know about safeguarding your points and miles before canceling a credit card.
Why Canceling a Card Can Put Your Rewards at Risk
Not all rewards programs treat points and miles the same.
In some cases:
- Rewards are tied directly to the credit card account.
- Closing the card can cause you to lose any unused points or miles immediately.
- Transferring or redeeming rewards before cancellation is essential to avoid forfeiture.
Understanding how your specific card and rewards program work is key to making the right moves.
Different Types of Credit Card Rewards Programs
Let’s look at the three main types of rewards programs — each with different rules regarding cancellations:
1. Issuer-Based Programs
Rewards are managed by the credit card issuer and are often lost upon account closure unless specific actions are taken.
Examples:
- Chase Ultimate Rewards®
- Citi ThankYou® Points
- American Express Membership Rewards®
2. Co-Branded Cards
These cards are linked to a specific airline, hotel, or retailer, and points are typically transferred out of the card issuer’s control as you earn them.
Examples:
- Delta SkyMiles® American Express® Cards
- Marriott Bonvoy® Credit Cards
- Hilton Honors American Express® Cards
Good news:
With co-branded cards, your rewards are generally safe because they reside with the airline or hotel loyalty program, not your credit card issuer.
3. Cash Back Cards
Cash back rewards might expire if you close the card without redeeming them.
Some issuers require you to redeem before canceling, while others automatically issue a statement credit or check.
Examples:
- Citi® Double Cash Card
- Chase Freedom Flex℠
- Discover it® Cash Back
How to Recover or Protect Points and Miles Before Canceling
Now that you know your rewards type, here’s a step-by-step guide to protecting your points and miles:
Step 1: Review Your Card’s Terms and Conditions
Every card is different.
Before you initiate cancellation, check:
- The official rewards program rules
- The expiration or forfeiture policies related to account closure
- Transfer options for points
This information is often found in your card’s benefits guide or online account portal.
Step 2: Redeem Your Rewards
If the rewards are tied to your card and would vanish upon closure, redeem them before canceling.
Options include:
- Cash back statement credits
- Travel bookings through the card’s portal
- Gift cards
- Merchandise (although this usually offers the worst redemption value)
Pro Tip:
Cash or travel redemptions typically offer better value than merchandise or gift cards.
Step 3: Transfer Your Points
Some issuer-based points programs allow you to transfer points to other loyalty programs — preserving your rewards even after canceling.
Examples:
- Chase Ultimate Rewards® points can be transferred to airline and hotel partners like United MileagePlus® or World of Hyatt®.
- American Express Membership Rewards® can be transferred to Delta SkyMiles®, Hilton Honors®, and more.
Important:
- Transfers are permanent and typically cannot be reversed.
- Once transferred, points are subject to the expiration rules of the airline or hotel program.
Step 4: Product Change Instead of Canceling
In many cases, you can downgrade to a no-annual-fee card instead of outright canceling.
Benefits of product changing:
- Preserve your account history (which benefits your credit score).
- Keep your points alive.
- Continue earning rewards, albeit at a lower rate.
Example:
Downgrading from a Chase Sapphire Preferred® Card to a Chase Freedom Unlimited® allows you to retain your Ultimate Rewards® points without paying an annual fee.
Step 5: Combine or Pool Points
Some programs allow you to combine points across accounts or family members.
Examples:
- Chase Ultimate Rewards® points can be combined with another Chase card under your name (or a household member’s).
- Citi ThankYou® points can be shared with other ThankYou® members (with some restrictions).
Combining points before closing an account ensures that you keep your rewards active and usable.
Special Considerations by Issuer
Different credit card companies have slightly different policies. Here’s a quick look:
Chase
- If you cancel a card like the Chase Sapphire Preferred®, you’ll lose any unredeemed Ultimate Rewards® points unless you transfer them to another Chase card or to a travel partner.
- Downgrade options are available to keep points alive.
American Express
- Points earned through Membership Rewards® are forfeited if all cards linked to your Membership Rewards® account are closed.
- Having even one other Membership Rewards®-earning card open protects your points.
Citi
- ThankYou® Points may expire immediately upon account closure unless transferred or redeemed.
- Points transferred to partners are subject to the partner’s expiration rules.
Capital One
- Capital One miles (e.g., from the Venture Rewards Card) are generally safe as long as your account is active.
- If you cancel, redeem or transfer miles beforehand.
What Happens If You Forget to Act Before Canceling?
If you cancel a card without redeeming or transferring your points:
- You’ll likely forfeit any remaining points immediately.
- Recovery is rare — most issuers treat forfeiture as final.
- If you act quickly (sometimes within 30 days), you might convince customer service to reinstate the card or points, but there are no guarantees.
Tip:
Always handle your points before you officially close the account to avoid this headache.
Final Tips for Managing Points When Canceling a Credit Card
- Don’t rush: Make a full plan before calling to cancel.
- Use or transfer points at least two weeks before canceling to allow for any processing time.
- Keep written confirmation of any point transfers or redemptions.
- Ask customer service about options when calling — they might offer incentives to keep your account open or suggest a product change.
Conclusion
Canceling a credit card doesn’t have to mean losing valuable points or miles — but only if you take the right steps first.
By understanding your card’s reward rules, redeeming or transferring wisely, considering a product downgrade, and planning ahead, you can maximize your hard-earned rewards even as you close out accounts.
Treat your points like cash — protect them with the same level of care — and you’ll ensure that no rewards go to waste when making changes to your credit card portfolio.