What happens to credit cards after a cardholder dies?
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.
Death isn’t an easy topic, but you should know what happens to credit card debt, authorized users and rewards after someone dies. Today we’ll supply answers and discuss what a cardholder can do to ease the process for their survivors.
What happens to credit card debt after death?
Credit card debt doesn’t disappear when a cardholder dies — it is paid off through their estate (which consists of everything owned at the time of death). If the estate’s assets aren’t enough to pay all debt, some creditors may not get paid.
Even if the estate’s assets aren’t enough to pay off all credit card balances, authorized users and family members generally aren’t responsible unless one of the following situations applies:
- You co-signed the credit card account with the deceased
- The account is a joint credit card account that you shared with the deceased
- You’re the surviving spouse, live in a community property state and the debt was acquired during marriage
- You’re the surviving spouse and state law requires that you pay for the debt
- You were legally responsible for administering the estate and didn’t comply with certain probate laws
Related reading: 5 things to understand about credit before applying for cards
What steps should be taken when a credit cardholder dies?
Our friends at Bankrate and creditcards.com (two companies also owned by The Points Guy’s parent company, Red Ventures) suggest taking the following steps once a credit cardholder dies if you are the estate executor (named in the will):
- Organize the financial accounts of the deceased, request a copy of his/her credit report and monitor their incoming mail.
- Prevent further credit card usage by stopping recurring payments and safely storing or destroying all cards (including authorized-user cards).
- Get multiple copies of the death certificate from the county where the deceased lived.
- Notify credit card companies of the death by calling the number on the back of each card and following the representative’s instructions.
- Contact the three credit card bureaus to request a credit freeze for the deceased and flag their credit report as “deceased.”
- Distribute payment to creditors in the right way, in order and at the right time.
Related reading: 5 ways to use credit cards responsibly
Steps to take before death
You can help make things easier for your estate executor by not carrying debt on your cards and checking your credit report regularly. If you don’t want to share your account log-in information with your spouse or executor, it may be useful to at least share a list of your current credit card accounts, including the authorized users and recurring charges on each account. This list will help your survivors contact the credit card companies and authorized users, as well as cancel or make other arrangements for recurring charges.
Related reading: 3 ways to pay off credit card debt
Can authorized users or a spouse use an account after the primary cardholder dies?
No. As soon as someone dies their credit card accounts become invalid. Using the credit card account of someone who has died — even as an authorized user or spouse, or for legitimate expenses of the deceased — is credit card fraud. As discussed in the previous section, after the primary cardholder dies, the surviving spouse or estate executor should notify relevant credit card companies and close the accounts.
Joint credit card accounts can continue to be used without any issues. But on traditional credit card accounts with a primary cardholder, authorized users or the spouse cannot take over the account, change the name on the account or otherwise continue to use the account after the primary cardholder dies.
Related reading: Everything you need to know about authorized users
Steps to take before death
With some couples, one person is the primary cardholder on all credit card accounts. Although their partner may be an authorized user on some or all of these accounts, this will leave a survivor without any active credit card accounts if the primary cardholder dies. So it’s generally a good idea for each member of a couple to have at least one credit card for which they are the primary cardholder — or for the couple to have a joint credit card account that they share.
Related reading: Two-player mode: Credit card strategies for couples
What happens to credit card rewards after death?
Most credit card rewards programs specify in their terms and conditions what happens to the accumulated points if the primary account holder dies. Here are the rules of many of the major credit card rewards programs:
American Express Membership Rewards: If we cancel your linked card account in the event of your death, your executor or personal representative may request to use the points in your program account in a one-time redemption by calling us.
Related reading: Choosing the best American Express credit card for you
Bank of America Premium Rewards: If the card account is closed in connection with a death or incapacity of the card account owner, points eligible for redemption may be redeemed if an authorized representative of the estate, as determined by us, requests points redemption within 57 days of an account closure. Whether points are eligible for redemption depends on the final status of the account, is subject to the account being closed and paid in full, and is in our sole discretion. Rewards will only be issued upon request and in the name of the deceased primary cardholder. In the event redemptions are mailed, they are sent in the name of the deceased primary cardholder and to the address we have in our system of record for that person.
Related reading: The best Bank of America credit cards
Capital One Rewards: Your rewards are yours for the life of the account — they will not expire. But if your account is closed, you will lose any rewards you have not redeemed.
Related reading: The best Capital One credit cards
Chase Ultimate Rewards: Points earned are not the property of the cardholder and are not transferable, have no cash value, and cannot be used as payment of any obligation to us or our affiliates, except to the extent specifically enumerated in the redemption rules. Any points accrued shall be permanently forfeited if your account has been closed, or upon the cardholder’s death.
Related reading: Maximize your wallet with the perfect quartet of Chase credit cards
Citi ThankYou: You will lose your points upon your death, and your estate, successors and assigns have no property rights or other legal interests in such points, except under this circumstance:
If we receive a written request within one year of your death from the executor or administrator of your estate, along with evidence satisfactory to us of your death and the identity and appointment of the executor or administrator, we can allow points remaining in your ThankYou account to be redeemed for Cash Rewards. Contact the ThankYou Service Center at 1-800-842-6596 for more information.
Related reading: The best Citi credit cards
Discover Rewards: We will credit your account with your Cashback Bonus balance if your account is closed or if you have not used it within 18 months.
Related reading: Your ultimate guide to Discover cards
Wells Fargo Go Far Rewards: If you close your credit card account, or if it is closed for any reason, you will forfeit your points and any pending points the day your credit card account is closed.
Related reading: Don’t overlook Wells Fargo credit cards
Although the official stances of many credit card rewards programs are bleak, some programs may provide better options in practice for at least some cardholders. For example, creditcards.com found that Chase may redeem the available points for their cash equivalent (1 cent per point), subtract any balance on the account and mail a check to the estate once the death of a cardholder is confirmed.
If the credit card of the deceased earned airline miles or hotel points instead, the executor should check the policy of the individual program since the points or miles will be in the airline or hotel loyalty account and not with the credit card issuer. See the article listed below for more details.
Related reading: What happens to your points and miles after you die?
Steps to take before death
It’s best to avoid hoarding points and miles since programs can devalue their rewards, programs can shut down and your survivors may not be able to transfer or cash out your rewards after your death. If you are sitting on a large stash of rewards, consider booking a trip with your loved ones using these rewards or at least determine whether the rewards could be transferred or otherwise cashed out upon your death.
Further reading: Why points and miles are a bad long-term investment
- Talking to your reluctant spouse about miles and points
- The top no-annual-fee credit cards with a 0% intro APR
- The best balance transfer credit cards
- The best travel credit cards
- 12 major mistakes people make with travel rewards credit cards
- Common credit card mistakes and how to avoid them
- How credit scores work
- 5 ways to improve your credit score
- How important is my credit utilization ratio?
- Credit cards with the greatest value for authorized users
- Best luxury cards based on annual fee and authorized user fees
Featured image by Isabelle Raphael/The Points Guy.
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
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 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 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, 60,000 points are worth $750 toward travel
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.