Question Of The Week: Will I Lose My Points If I Cancel My Credit Card?
Our question of the week this week is common in this hobby: will I lose my points if I cancel my credit card? Will those points and miles in my account disappear if I close the credit card I used to earn them? Here are the various situations to consider and the answers to what happens.
The Question
Our question comes from KD in our Facebook group:
Great question!
KD’s question is specifically about American Express and Membership Rewards. These are points you earn that are from the bank who also issued the credit card. They came from the same place. However, the question can also reply to what we call “co-branded cards” or “third-party credit cards”, like a Hilton credit card issued by American Express. Let’s look at the 2 types of situations.
Bank Points / In-House Points
With in-house points, you should be more careful. KD has the Business Platinum Card from American Express and the Blue Business Plus Card. Those points go into the same account, so closing 1 isn’t a problem. However, if KD would close all Membership Rewards-earning cards with American Express, then the points would be in jeopardy.
Depending on the bank, you typically have 30 days to do something with your points. That could be cashing them out, transferring to an airline or hotel program, etc.
Answer: if you close all cards with the bank that can earn their in-house points, your points are in jeopardy. Make sure you keep some type of card with them to keep your points alive.
Co-Branded / Third-Party Credit Cards
The situation is a bit simpler with co-branded credit cards. If you have a hotel points credit card from Chase or American Express, those points exist outside the bank. If you close that credit card, your points are yours. They’re already in your account. The same applies to airline programs. Closing your credit card won’t jeopardize your points. (Notable exception: if you break rules, such as closing your American Express card within 1 year of opening it, the bank could claw those points back)
Answer: third-party points are typically safe, unless you break some rules when closing the card.
Final Thoughts
This is a common question: will I lose my points if I cancel my credit card? Luckily, the answer is pretty straightforward. If the points exist in a program outside the bank, they’re generally safe. However, if the points are in the bank’s own program, make sure you have another card with them that will keep the points alive. If not, your points could be at risk, so have a plan for what to do with them.
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