When you close a credit card, it’s typically a use-it-or-lose-it situation for rewards — and you may miss out on huge value if you don’t take action.
“Too many cardholders forget or don’t realize that when you close that account, you could lose all those unredeemed points or miles,” says Hillary Seiler, creator of “My Money Playbook” and NFL money coach. “Never assume those rewards will transfer automatically.” Here’s what to know about rewards when you close a credit card and how to get your rewards value before your account is closed.
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How Issuers Handle Rewards When You Close a Card
Issuer policies vary on what happens to rewards after you close an account, but you should expect to lose rewards immediately or soon after. In most cases, your rewards are forfeited upon account closure, but you could retain rewards if you have another card with the same issuer. Some issuers allow redemptions for a short time after account closure in qualifying circumstances.
David Shipper, strategic advisor for financial data company Datos Insights, says it’s a safe bet to redeem as many points as possible before closing an account. “There’s no going back,” he says.
— American Express: You will immediately forfeit any unredeemed Membership Rewards points. However, you can retain your points with another American Express card or checking account. New York cardholders have 90 days after account closure to redeem points.
— Chase: You’ll lose unused Chase Ultimate Rewards points if you close your Chase card account, but you can move your points over to another Chase card before account closure.
— Capital One: When you close your Capital One account, you’ll lose unredeemed rewards. Before closure, accounts not in good standing with Capital One may lose unredeemed rewards or have limited redemption options.
— Citi: If Citi closes your card for any reason other than inactivity, you’ll immediately lose the ThankYou points associated with that account. However, you can get up to 90 days from account closure to redeem your points if you close your account, Citi closes it for inactivity, or you have a Citi consumer checking account enrolled in ThankYou rewards.
There’s an exception for co-branded cards, though. When you earn co-branded rewards, such as hotel points or airline miles, your earnings are typically transferred to your airline or hotel loyalty program account with each statement. A credit card account closure shouldn’t affect your loyalty program account, though you should monitor inactivity expiration policies. For example, airline loyalty program points may expire after 24 months of inactivity.
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How to Save Your Rewards When Closing a Card
Don’t count on being able to redeem rewards after the account is closed. Instead, figure out how you’ll handle your rewards balance before closure. Depending on your account, your options may include:
— Redeeming cash back for statement credits, gift cards or merchandise
— Transferring points to travel partners
— Moving rewards to another card
— Transferring points to another cardholder if permitted
Small point balances may be best used for cash back, gift cards or merchandise. It’s also easy to move rewards to another card with the same points currency. For example, if you have two AmEx Membership Rewards cards, you can close one of the accounts and keep your points active with the other account.
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You may even have the flexibility to transfer points to a participating loyalty program. If you have a significant stash of points, it could be worth locking those away with a travel partner that can offer more time to redeem them.
“In many cases, points can be transferred to other loyalty programs within a network of loyalty partners,” says Len Covello, chief technology officer at global loyalty technology provider Engage People.
You can log in to your AmEx Membership Rewards, Chase Ultimate Rewards or Capital One account to transfer your points balance to participating airline and hotel loyalty programs. Most programs transfer points at a 1:1 ratio almost immediately or within a few business days.
[Read: Cash Back Credit Cards]
Other Considerations Before Closing a Card
Rewards aren’t the only factor to consider when you close a card. Some cards offer cardholder benefits, such as statement credits, which you should take advantage of to get more value from your card before you close it. For example, if you get a $15 Uber credit each month, make sure you’ve redeemed your statement credit before closing your account.
Not sure you want to close your card? You could always check for a retention offer to sweeten the deal. If you contact the credit card issuer, you might get an offer of bonus points or a fee waiver to encourage you to keep your card open. If the deal works for you, you can carry on, and you don’t need to transfer or redeem your points until you’re ready to use them.
“If you’re closing the card because of an annual fee, fraud or an upgrade to a new card, don’t just walk away,” says Seiler. “Ask them to waive the fee to keep you on board, transfer your points to the new card, or offer you a retention bonus to stick with your current one. It’s worth a call every single time. Don’t leave money on the table.”
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What Happens to Your Credit Card Rewards When You Close an Account? originally appeared on usnews.com
Update 05/11/26: This story was previously published at an earlier date and has been updated with new information.