Chase Sapphire Reserve℠

How Can I Avoid Losing My Points When Closing a Card?

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

TPG reader David sent me a message on Facebook to ask about transferring points:

“I was thinking of closing my ThankYou Premier and Amex Premier Rewards Gold cards, but I’m not sure what to do with the points. My initial thought was to transfer to Singapore Airlines, but I don’t have a specific redemption in mind. Where should I park my rewards for future use?”

One of the most important steps to take before canceling a credit card is to make sure your rewards won’t be lost in the process. That’s generally not a problem with co-branded airline and hotel cards, but points linked to bank-sponsored programs (like Citi ThankYou Rewards and Amex Membership Rewards) will disappear with your account unless you find another place to keep them.

As David suggested, one solution is to transfer those points to a travel partner, but which one you choose depends on your location, travel plans and other factors. Travel rewards make a poor long-term investment, so your best options are programs you’re likely to use in the near future. For example, if you routinely fly with American Airlines, then transferring your Membership Rewards points to British Airways is a decent option, since you can redeem Avios for flights on American (as well as on other Oneworld partners).

Another important consideration is the expiration policy, which varies widely from one frequent flyer program to another. Delta SkyMiles don’t expire, so that’s a fairly safe destination for your Amex points. The same goes for JetBlue’s TrueBlue program, though the transfer ratio is less favorable. On the other hand, Singapore Airlines miles expire after three years regardless of whether there’s activity in your account. Without a specific redemption in mind (even in the long term), transferring to KrisFlyer isn’t a great option.

Finally, there are some programs to avoid even if they fit with your travel plans, since they don’t offer good value for your transferable points. For example, both Citi and Amex transfer to Hilton HHonors at a ratio of 2:3. However, HHonors points are worth only about 0.5 cents apiece on average, so you can expect to get around 0.75 cents of value in return for each point you transfer. Given that you can redeem ThankYou points directly for travel at a rate of 1.25 cents apiece, you’d be sacrificing a lot of value by transferring to Hilton.

There;s
There’s plenty to like about Hilton HHonors, but it’s not a great option for parking rewards.

If you’re concerned about paying annual fees, another option is to downgrade your card instead of canceling it altogether. As the Amex Premier Rewards Gold card is a charge card rather than a credit card, your downgrade options in this case are limited. You could downgrade to the Amex Green card, dropping the annual fee to $95, or you could sign up for the Amex EveryDay Credit Card (linked to the same Membership Rewards account) — it’s one of the best no-fee cards out there, and still allows you to transfer points to Membership Rewards airline and hotel partners.

Meanwhile, with Citi, you can downgrade the Citi ThankYou Premier Card to the Citi ThankYou Preferred Card. You’ll lose the ability to transfer points, but you can still share them freely with other ThankYou Rewards members. If your travel companion has the ThankYou Premier or the Citi Prestige Card, you’d effectively be able to transfer points to travel partners when the time suits you. If not, at least you’d keep your ThankYou points alive without having to transfer them prematurely.

For more information about closing cards and maximizing points transfers, check out these posts:

If you have any other questions, please tweet me @thepointsguy, message me on Facebook or send me an email at info@thepointsguy.com.

The Amex EveryDay® Credit Card from American Express

Apply Now
  • Earn 10,000 Membership Rewards® points after you use your new Card to make $1,000 in purchases in your first 3 months.
  • Use your Card 20 or more times on purchases in a billing period and earn 20% more points on those purchases less returns and credits. Terms and limitations apply.
  • 2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x); 1x points on other purchases. Terms and limitations apply.
  • You can use Membership Rewards® Pay with Points to pay for all or part of your flight, hotel booked and paid in advance, vacation or cruise booking.
  • No annual fee. Plus, 0% intro APR on purchases and balance transfers for 12 months, then a variable rate, currently 13.24% to 23.24%, based on your creditworthiness and other factors.
  • Terms and Conditions apply.
  • See Rates & Fees
Intro APR Regular APR Annual Fee Foreign Transaction Fee Credit Rating
0% for 12 months 13.24%-23.24% Variable $0 0% Excellent Credit