Question: What Happens to My Status if I Close a Credit Card?
Many credit cards offer elite status as a perk, so what happens to that status if you close a credit card? Or what if you downgrade that card to something else? Our question this week looks at what happens to your status if you close the credit card that gave you this status in the first place.
The Question
Our question of the week comes from Larissa in our Facebook group:
Didn’t get a retention offer on my Bonvoy Brilliant, so I’m downgrading or canceling. Will I loose my gold status immediately?
Thanks!
Credit Cards that Offer Elite Status
Before we get into the “what happens” part, let’s look at some credit cards that offer elite status automatically, just by having them in your wallet. Rather than listing all of them (it’s long!), here are some resources you can check out:
- Credit cards that offer elite status as a perk (covers car rental programs and hotels)
- How to get rental car elite status with several programs for free (covers credit cards with status and then status matching)
- While there are several airline credit cards that offer lounge memberships and priority boarding, none actually offer real status (not just imitation via perks) except the Chase Aeroplan Card (read our review here). It offers Aeroplan 25K status, which is the lowest of 5 tiers).
Effects on Status if You Close The Credit Card
And now to the main point: here’s what you can expect to happen.
Once you close a card, ancillary benefits tied to it will go away immediately. Look at my experience trying to use a Delta Sky Club guest pass the day after I had canceled my Delta SkyMiles Reserve Business card. Amex immediately notified Delta, who canceled the guest passes immediately.
Obviously, that’s extremely fast. American Express and Delta have an intimate partnership. Will it be that fast with your car rental status at Avis due to having the Platinum Card from American Express? Likely not, but I also wouldn’t plan on getting benefits in the gray area, since it might not work out. Consider it a ‘happy if you do’, but assume it won’t happen if you have a rental in the days immediately after closing a card.
On the other side, there is Marriott. Personal and small business co-branded cards from American Express and Chase offer a perk of 15 elite night credits per year, simply by having the card. These are deposited into your account as soon as you open the card and then again in January of each subsequent year. This continues as long as you have the card. From personal experience (and from others’, as well), I know that Marriott does not take these credits away if you close the card later in the year. Thus, you should keep those 15 night credits which help you on your path toward Marriott Bonvoy status.
And then there’s the temporary stuff during the pandemic. You can check out this list covering the many changes regarding status extensions for various programs. For Larissa’s question in particular, her Marriott status is safe if she decides to close her credit card. Bonvoy status is extended through February 2023.
Final Thoughts
Weighing the perks and benefits from your credit card is an important decision in whether you want to downgrade or close a credit card. If you don’t get a retention offer (see our current data points on retention offers here) consider things like lost benefits to decide which path makes the most sense for you. Luckily, you might have some time before you feel the effects on losing status, since many programs have extended status temporarily.
Have a question? Ask in our Facebook group or email me at ryan[at]milestomemories.com
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I had a card that granted rental car status. After canceling the card, the status never went away. It’s still there today. Ha.
Sometimes you get lucky! When I was in the army, banks waived all of my credit card fees. Legally, you have to tell them when you get out of the military. I got out over 7 years ago. Barclays is still not charging me an annual fee on a card I had back then. I sent them the paperwork, but I don’t feel like it’s my responsibility to tell them “please charge me”.
Great topic. As a do, I closed my Chase United business card a couple of weeks ago. It took about two days for my free passes and Mileage Plus X bonus to disappear.
Great – thanks for sharing.