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

16.02.2024 - 21:45 / thepointsguy.com

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 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.

Here's what you need to know if you're considering canceling a credit card but aren't sure what will happen to the rewards you've earned on it.

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:

Let's take a look at how easy it is to hold on to each of these types of rewards.

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, since they will typically post to your loyalty program account within a week or so of your statement closing.

Once they are there, it becomes incredibly difficult for the card issuer to try to take them back if you cancel the card.

Related: What to do before you close a credit card

However, canceling a card in the second category, which earns rewards within an issuer's proprietary program, may result in a forfeiture of your points. That's because these accounts (and their content) are owned and controlled by the issuing bank.

One exception to the above: If you live in New York state, you'll now have a bit of a grace period when trying to redeem rewards on a canceled card.

As of December 2023, New York law states that "credit card issuers have 45 days to provide notice to cardholders when any existing credit card account or rewards program is canceled or closed or modified in a way that is less favorable to the consumer."

Additionally, "consumers have 90 days to redeem their accrued points or rewards." In other words, you'll receive a 90-day grace period after your account has been closed to redeem any points or miles you might have.

Here are some policies to keep in mind depending on the issuer:

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