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Debunking credit card myths: Do you keep your points and miles when you cancel a credit card?

Feb. 03, 2022
6 min read
The more space you have on that credit card, the better off you'll be.
Debunking credit card myths: Do you keep your points and miles when you cancel a credit card?
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Editor’s note: This post has been updated with new information.


We talk about travel credit cards quite a bit here at TPG. Applying for and utilizing these cards strategically can unlock incredible travel experiences like premium-class flights or luxurious hotel rooms. However, there are a number of misconceptions out there when it comes to credit cards, so it's important to separate fact from fiction and debunk some of the most popular myths out there.

Today, we're looking at whether you can cancel a credit card and keep the rewards you've earned on it.

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Myth: I can always keep the points or miles I’ve earned when I cancel a card

During my time in this hobby, I’ve read many reports of inexperienced travelers being surprised when they cancel a credit card and suddenly see that they no longer have access to tens of thousands of points they had earned on the card. You may assume that a credit-card issuer is like a bank. You’d never expect Chase or Bank of America to simply keep your cash if you close a checking or savings account. Surely the same logic applies to credit card rewards, right?

Unfortunately, the answer to this question is “not necessarily.”

Generally speaking, you can divide your credit card rewards into two categories:

For the most part, you will not lose your points and miles when you cancel cards that fall into the first category of airline miles and hotel points. This is because they will typically post to your loyalty program account within a week or so of your statement closing. Once they are there, it can be challenging (or impossible) for the card issuer to claw them back if you cancel the card.

However, canceling a card in the second category, which earn rewards in an issuer's proprietary program, can easily result in a forfeiture of your points. This is due to the fact that these accounts (and their contents) are owned and controlled by the issuing bank. Once you no longer have an account associated with the given program, you not only won’t be able to earn more points; you may also see your account balance zeroed out. Before you panic, though, there are a few steps you can take to ensure that this does not happen.

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Related: What to do before you close a credit card

One easy way to prevent this from occurring is to redeem or transfer your points before canceling the card. However, there are also some other methods that can extend the life of these points, though some do carry restrictions of their own. Let’s take a quick look at the major programs to which this applies and some of those exceptions and workarounds.

(Photo by Isabelle Raphael / The Points Guy)

American Express Membership Rewards

Policy: Membership Rewards points are immediately forfeited when you cancel a card and don’t have another card that earns Membership Rewards points associated with that account.

Exceptions/workarounds: Per the program’s terms and conditions, you have a 30-day grace period in which to redeem your Membership Rewards points if you have at least one other (non-Membership Rewards) American Express card. However, if you cancel your only Amex card, your points will be immediately lost.

Capital One miles

Policy: When you close your account, you will lose any rewards you have not redeemed.

Exceptions/workarounds: Capital One offers tremendous flexibility when it comes to moving your rewards prior to canceling a card. If you have another card on your account that earns Capital One miles, you can log in and select the "Move Rewards" option from the rewards page. You can also move your miles to another Capital One cardholder — who doesn't even need to live at your same address. You do need to call to accomplish this, as there's no way to do this online, though.

Chase Ultimate Rewards

Policy: Ultimate Rewards points are forfeited when your account is closed, though the terms and conditions indicate that you'll have at least 30 days to redeem the points from the date of closure if your account is in good standing at the time.

Exceptions/workarounds: In addition to the 30-day grace period, if you, a spouse/domestic partner or business owner (for Ink business cards) has another card that accrues Ultimate Rewards points, you can transfer your points to their Ultimate Rewards account before closing your own. This is also a great way to convert cash-back points into full Ultimate Rewards points. Just note that you may need to call accomplish this.

Citi ThankYou Rewards

Policy: Citi ThankYou points are immediately forfeited if you cancel a card and don’t have another card that earns ThankYou points associated with your ThankYou Rewards account.

Exceptions/workarounds: First of all, it’s important to note that even if you have another card that earns ThankYou points, all points earned with the specific card you close will expire 60 days from the date of cancellation. So even if you combine them with those from another account that remains open, you should have a plan to redeem or transfer them to one of the program's airline or hotel partners. If you don't have another Citi ThankYou account open at the time of account closure, you will forfeit your points immediately.

ThankYou Rewards does allow you to share points with a friend or family member who is also a ThankYou member. However, you’re limited to 100,000 points per calendar year, and all shared points must be redeemed within 90 days.

Bottom line

Canceling a credit card may be worth it to avoid an annual fee if you no longer use the card, but it’s essential to know how that will affect the points or miles you’ve earned (but haven’t redeemed) on that card. While most airline- and hotel-specific cards won’t take back the points that have already posted to your account, many cards affiliated with a specific issuer won’t be as forgiving.

Redeeming those points before canceling is your best bet, but you also have a few additional strategies to keep them in your possession or share with other cardholders. Hopefully this post has given you some guidance on when this applies and how you can accomplish it!

Additional reporting by Madison Blancaflor.

Featured image by Getty Images/iStockphoto
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
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There's a lot to love about the Amex Gold card. It's been a fan favorite during the pandemic because of its fantastic rewards rate on restaurants (that includes takeout and delivery in the U.S.!) and U.S. supermarkets. If you're hitting the skies soon, you'll also earn bonus points on travel. Paired with up to $120 in Uber Cash (for U.S. Uber rides or Uber Eats orders) and up to $120 in annual dining statement credits at eligible partners, there's no reason that the foodie shouldn't add this card to their wallet. Enrollment required.

Pros

  • 4x on dining at restaurants and U.S. supermarkets (on the first $25,000 in purchases per calendar year; then 1x)
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  • Welcome bonus of 60,000 points after spending $4,000 in the first six months

Cons

  • Weak on travel outside of flights and everyday spending bonus categories
  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber/food credits
  • Few travel perks and protections
  • Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
  • Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S., and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
  • Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year.
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  • Choose the color that suits your style. Gold or Rose Gold.
  • No Foreign Transaction Fees.
  • Annual Fee is $250.
  • Terms Apply.
  • See Rates & Fees
Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for the well-traveled foodie
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

4XEarn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S.
4XEarn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
3XEarn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • Intro Offer
    Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

    60,000 bonus points
  • Annual Fee

    $250
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    670-850
    Excellent/Good

Why We Chose It

There's a lot to love about the Amex Gold card. It's been a fan favorite during the pandemic because of its fantastic rewards rate on restaurants (that includes takeout and delivery in the U.S.!) and U.S. supermarkets. If you're hitting the skies soon, you'll also earn bonus points on travel. Paired with up to $120 in Uber Cash (for U.S. Uber rides or Uber Eats orders) and up to $120 in annual dining statement credits at eligible partners, there's no reason that the foodie shouldn't add this card to their wallet. Enrollment required.

Pros

  • 4x on dining at restaurants and U.S. supermarkets (on the first $25,000 in purchases per calendar year; then 1x)
  • 3x on flights booked directly with the airline or with Amex Travel
  • Welcome bonus of 60,000 points after spending $4,000 in the first six months

Cons

  • Weak on travel outside of flights and everyday spending bonus categories
  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber/food credits
  • Few travel perks and protections
  • Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
  • Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S., and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
  • Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year.
  • $120 Dining Credit: Satisfy your cravings and earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Enrollment required.
  • Choose the color that suits your style. Gold or Rose Gold.
  • No Foreign Transaction Fees.
  • Annual Fee is $250.
  • Terms Apply.
  • See Rates & Fees