Points Principles: What Happens to Your Points When You Close a Card?
Credit Card Myths

Points Principles: What Happens to Your Points When You Close a Card?

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Editor’s Note: Welcome to our Points Principles series, an ongoing series dedicated to explaining the basics behind the confusing world of frequent flyer miles and travel rewards points. Follow along as we lay out some of the building blocks to travel for nearly free. And check back to the Points Principles page to see what ground we’ve already covered. 

It’s a question that comes up for everybody who has ever opened a travel credit card: “What happens to my points and miles after I close a credit card?”

The answer? It depends. Exactly what happens to your points and miles depends on the specific credit card, and which hotel or points program it’s associated with.

If you’re closing a co-branded card – a partnership between an airline or hotel and a bank like Delta, American Airlines or Hilton – your points are safe no matter what you do with your card. But if the card in question is issued directly from a bank like Chase, American Express or Citi, you may need to have a plan for your points before you cancel.

Let’s dive in.


The Basics of Canceling a Co-Branded Credit Card

If you are canceling a co-branded airline card like the Delta SkyMiles Gold American Express Card or hotel cards like the Chase Marriott Bonvoy Boundless card, you don’t have to worry.

Your points should be safe and sound in your loyalty program account after you choose to close the account, generally speaking. Once the card-issuing bank – in these examples, American Express or Chase – deposit the points into either your Delta SkyMiles account or your Marriott Bonvoy account, they cannot claw the points back after you decide to close the credit card. They are yours to keep until you use them or they expire. In the case of Delta SkyMiles, they never expire, period.

what happens to my points 

And while we only used Delta and Marriott Bonvoy credit cards in this example, this same principle will hold true no matter the hotel or airline credit card you are referring to. Once they’re in your hotel or airline account, they are safe.


The Basics of Canceling a Flexible Points Credit Card

While there is no risk of losing your points when canceling a co-branded credit card, that’s not the case when referring to a flexible points credit card issued directly from a bank.

A few popular examples include the Chase Sapphire Preferred Card, Chase Sapphire Reserve, Capital One Venture Rewards Credit Card, Platinum Card from American Express, and the American Express Gold Card.

what happens to my points 

If you have points in your account and you decide to cancel flexible points cards like these, you may forfeit any and all remaining points in your account. But there’s a way around that: If you still have another card open that earns the same points, your points should be safe.

For example, let’s say you hold both the American Express Platinum and American Express Gold cards and decide to cancel the Gold card, you will not forfeit any points because you still have a card open that earns Amex Membership Rewards points in the Amex Platinum card.


Co-Branded Card Cancelation Considerations

Because losing your points should not be a deciding factor in whether or not to close a co-branded credit card, we always recommend weighing the annual fee against the benefits when deciding whether or not to keep the card open. That’s why we tell readers to think twice before canceling a card.

For example, I often fly with Delta, and having kids at home means we typically check a bag when we travel.

I carry the Delta SkyMiles Gold Card simply because it provides a free checked bag every time we travel. Considering that Delta  charges $30 each way to check a bag, we only have to take two round trips each year to come out ahead on the $99 annual fee. For that reason alone, we keep the card open.

The same can be said for the many hotel credit cards in my wallet – especially the World of Hyatt Credit Card. While I could cancel the card and my World of Hyatt points would be safe and sound, I keep it open for the annual free night it provides at hundreds of Hyatt properties around the world. Again, I have no problem getting three to four times more value than the annual fee costs ($95) out of this benefit.


Flexible Points Card Cancelation Considerations

Because you will lose any points left in your account upon canceling a flexible currency credit card, it’s important to have a game plan before canceling.

If you absolutely need to cancel the card, you can transfer many of these points to hotel and airline transfer partners. Once these points reach the loyalty account of the airline or hotel program, they will be safe and sound if you decide to cancel the card.

But remember that all of these points transfers are one way. This means that once you send them from Chase Ultimate Rewards to World of Hyatt for example, there is no going back. You can’t turn those Hyatt points back into Chase Ultimate Rewards points.

For this reason, it’s always a good idea to transfer the points to programs where you know you will use the points.


Bottom Line

Whether or not you will lose your points depends on the type of travel rewards credit card you are considering canceling. And if the card in question is a flexible points credit card issued directly from a bank, think twice. Any points left in your account upon cancelation will be forfeited.


Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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