Do I Keep My Rewards When I Close a Credit Card Account?
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. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Update: Some offers mentioned below are no longer available – View the current offers here
TPG reader Steven sent me a message on Facebook to ask about holding on to credit card rewards:
“If I cancel my Delta card, will I get to keep the miles I’ve earned?”
Earning points and miles is fun, but the whole point of earning them is to use them, so it’s natural to be wary of anything that might put your rewards at risk. This is one of the most common questions I get, probably because credit card issuers themselves offer mixed signals. The short answer is that you usually get to keep your rewards after canceling a card, but there are some important exceptions.
The points and miles you earn from an airline, hotel or other co-branded card are generally safe even if you close your credit account. For example, rewards from the Gold Delta SkyMiles Credit Card from American Express are ultimately administered by Delta, and your relationship with Amex generally doesn’t come into play. Once the miles are in your SkyMiles account, they’re yours (though card issuers may claw back rewards earned from purchases that are later returned or refunded).
The story is different for rewards from credit card loyalty programs, such as Chase Ultimate Rewards points or Barclaycard Arrival miles. Those rewards can be forfeited if you cancel your card, so it’s important to transfer or redeem them before closing your account. In some cases, you can simply transfer those points to a different account in the same program. For example, you can combine points from the Chase Sapphire Preferred Card and Ink Plus Business Card; just make sure to do it before you close the account in question.
A lot of people get confused about this because credit card phone reps routinely suggest that closing your account will put your rewards in jeopardy, even for co-branded cards. What they may mean is that points earned that haven’t yet appeared in your frequent-flyer or hotel account may be lost. Also, canceling your card could lead to an extended period of inactivity in your loyalty account (because you’re no longer earning on the card), and that could cause your points or miles to expire. However, that’s an indirect result — canceling the card itself is not the issue, and there are plenty of other ways to keep rewards from expiring.
For more on protecting your credit card rewards, check out these posts:
- Ten Commandments for Travel Rewards Credit Cards
- 8 Questions (and Answers) about Travel Rewards Cards
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.