Key Points

• Most credit card issuers forfeit unredeemed rewards when you cancel your account unless you transfer or redeem them first.
• Transferable points programs like Chase Ultimate Rewards and Amex Membership Rewards require you to keep at least one transfer-capable card open to preserve transfer access.
• Downgrading to a no-annual-fee card is almost always smarter than canceling outright, protecting both your rewards and credit history.

Introduction

You've decided to cancel a credit card—maybe the annual fee no longer makes sense, or you've found better options. But what happens to the rewards you've worked so hard to earn? The answer depends on your card issuer, the type of rewards program, and most importantly, the actions you take before closing your account.

Here's the reality: most major credit card issuers will forfeit your unredeemed rewards when you cancel. That means if you have 50,000 Chase Ultimate Rewards points or 100,000 Amex Membership Rewards sitting in your account, they could disappear the moment you close your card—unless you know what to do first.

This guide walks you through exactly what happens to your rewards with each major issuer, how to protect your points before canceling, and why downgrading might be the smarter move in most situations.

The Quick Answer: What Happens to Your Rewards

When you cancel a credit card, your accumulated rewards typically fall into one of three categories:

Forfeited immediately: Most cash back programs and closed-loop points systems (rewards usable only with that issuer) disappear when you close the account. This includes cards like Capital One Quicksilver cash back, Discover cash back, and store-specific rewards cards.

Grace period provided: Some issuers give you 30-90 days to redeem rewards after cancellation. Bank of America, for example, typically provides 90 days to use unredeemed rewards, while Citi often gives 60 days depending on the card.

Preserved with conditions: Transferable points programs like Chase Ultimate Rewards, Amex Membership Rewards, Citi ThankYou Points, and Capital One miles can be preserved if you maintain at least one card in that ecosystem. Close all your cards, and the points vanish.

What Happens With Each Major Issuer

Chase Ultimate Rewards

Chase operates a pooled points system where all your Ultimate Rewards points live in a single account shared across your Chase cards. Here's what you need to know before canceling any Chase card:

If you close your only Chase card: All Ultimate Rewards points are forfeited immediately with no grace period. Chase doesn't mess around—those points disappear the moment the account closes.

If you have multiple Chase cards: Your points remain safe in your Ultimate Rewards account. However, your ability to transfer points to airline and hotel partners depends on having at least one premium card (Chase Sapphire Preferred, Chase Sapphire Reserve, or Ink Business Preferred) open. Close all your premium cards while keeping only a Freedom card, and you'll lose transfer access—your points will only be worth 1¢ each for cash back or gift cards.

Smart strategy: Before canceling your Sapphire card, downgrade to a Chase Freedom Unlimited or Freedom Flex instead. You'll keep your points, maintain your credit history, and eliminate the annual fee. If you later want transfer access back, you can always upgrade again.

American Express Membership Rewards

Amex Membership Rewards work similarly to Chase but with slightly different rules. Your points pool across all Amex cards that earn Membership Rewards:

If you close your only Membership Rewards card: Points forfeit immediately. Amex doesn't provide a grace period for closed accounts.

If you have multiple Membership Rewards cards: Your points remain intact as long as you keep at least one Membership Rewards-earning card open. This includes the no-annual-fee Blue Business Plus, making it an excellent "keeper" card to preserve points indefinitely.

Transfer partner access: Unlike Chase, Amex doesn't require you to keep a premium card open to maintain transfer access. Even with just the no-annual-fee Blue Business Plus, you can still transfer points to airline and hotel partners. This makes the Blue Business Plus one of the most strategic cards to never close.

Important exception: If you're under a retention offer that requires spending to earn bonus points, canceling before meeting that requirement means you forfeit those bonus points even if you have other Amex cards open.

Citi ThankYou Points

Citi's ThankYou Points program follows the same pooled model, but with some issuer-specific quirks:

If you close your only ThankYou card: You have 60 days from account closure to redeem your points. After that grace period, unredeemed points forfeit.

If you have multiple ThankYou cards: Points remain in your account. However, transfer partner access requires keeping at least one premium card open (Citi Strata Premier or Citi Premier). Downgrading or closing all premium cards while keeping only the Citi Custom Cash or Citi Rewards+ means you lose transfer capability—points become worth only 0.5-1¢ each for cash back or gift cards.

Strategic move: Keep the Citi Rewards+ as your "keeper" card if you close other ThankYou cards. Its unique feature of rounding every purchase up to the nearest 10 points means you're still earning at least a small amount, keeping your account active without annual fees.

Capital One Miles

Capital One takes a different approach—their miles don't technically "pool" across cards, but closing cards affects your rewards differently depending on the card type:

If you close a Venture or VentureOne card: You forfeit any unredeemed miles immediately. Capital One doesn't provide a grace period.

If you have multiple Capital One cards: Each card maintains separate miles balances. However, when booking travel through Capital One Travel, you can combine miles from multiple cards. The catch: once a card closes, those specific miles are gone—they don't transfer to your other Capital One cards.

Transfer partners: The Capital One Venture X and Venture Rewards cards offer airline transfer partners. Close these cards, and you lose transfer access for any remaining miles on that specific card.

Better option: Downgrade your Venture X to the no-annual-fee VentureOne to preserve miles and avoid the $395 annual fee while maintaining the ability to redeem those miles for travel.

Cash Back Programs (Chase, Discover, Bank of America)

Straight cash back programs typically have simpler rules, but they're often less forgiving:

Chase Freedom cards: Cash back rewards forfeit immediately upon closure unless you have another Ultimate Rewards-earning card. If you do, the "cash back" converts to Ultimate Rewards points in your shared account.

Discover it cards: You have 90 days from account closure to redeem your cash back. After that, unredeemed rewards forfeit. Discover will mail you a check for your remaining balance if you request redemption before closing.

Bank of America cards: You typically have 90 days to redeem rewards after cancellation. Bank of America will automatically convert remaining rewards to a statement credit or mail a check for cash back cards if you request it before the grace period ends.

Airline and Hotel Co-Branded Cards

Co-branded cards work differently because the rewards live in the airline or hotel loyalty program, not with your credit card issuer:

The good news: Closing a Southwest, United, Delta, Marriott, or Hyatt card doesn't affect the miles or points already in your loyalty account. Those points remain in your airline or hotel program regardless of your credit card status.

The catch: You'll lose card-specific benefits like free checked bags, priority boarding, anniversary free night certificates, or elite status. Many of these perks are worth more than the annual fee for frequent travelers.

Important consideration: Some airline and hotel programs have inactivity rules. For example, American Airlines AAdvantage miles expire after 24 months of no account activity. If your credit card was your primary way of earning miles, closing it could lead to account inactivity and eventual point expiration unless you book flights or use other earning methods.

Before You Cancel: Essential Steps to Protect Your Rewards

Step 1: Take Inventory of All Your Rewards

Log into each credit card account and write down your current rewards balance. Don't forget:

• Pending points that haven't posted yet (usually 1-2 billing cycles after spending)
• Points from recent purchases that haven't shown up yet
• Bonus categories that might be earning more than you realize
• Any retention offer bonuses you're working toward

Step 2: Check Your Transfer Partner Options

Before closing any card with transferable points, verify what airline and hotel partners are available and whether you can transfer points to preserve value:

Chase Ultimate Rewards: 14 transfer partners including United, Southwest, World of Hyatt, and Marriott (though Hyatt offers much better value). If you're sitting on a large balance, transfer to partners before downgrading if you'll lose transfer access.

Amex Membership Rewards: 21 transfer partners including Delta, Air Canada, British Airways, and Hilton. Consider transferring large balances to partners with long-term value before closing your last Membership Rewards card.

Citi ThankYou Points: 21 transfer partners including JetBlue, Air France/KLM, and Turkish Airlines. Turkish Miles&Smiles is particularly valuable for Star Alliance redemptions.

Step 3: Redeem or Transfer Before the Deadline

If you've decided to close your card and it's your only card in that rewards program, you have several options:

Best option - Transfer to partners: Move your points to airline or hotel loyalty programs where they'll remain safe. Focus on programs where you have upcoming travel plans or that offer the best long-term value. For example, World of Hyatt points never expire as long as you have account activity.

Good option - Book travel: Use points to book flights or hotels directly through your card's travel portal. While you might not get maximum value, it's better than forfeiting points entirely.

Acceptable option - Cash out: Redeem for statement credits, cash back, or gift cards. Yes, the redemption value is lower (typically 1¢ per point), but it's better than losing everything.

Worst option - Wait and see: Never assume you'll have time to deal with rewards after canceling. Many issuers forfeit points immediately with zero grace period.

Step 4: Consider Downgrading Instead of Canceling

In most cases, downgrading to a no-annual-fee card makes more sense than canceling outright. Here's why:

You keep your rewards: Points remain in your account when you downgrade, unlike canceling where they often forfeit.

You protect your credit score: Downgrading maintains your account age and credit limit, while canceling can hurt your credit score by reducing available credit and shortening average account age.

You maintain flexibility: You can always upgrade back to a premium card later if your situation changes, often without needing a hard credit inquiry.

Popular downgrade paths:

• Chase Sapphire Preferred/Reserve → Chase Freedom Unlimited or Chase Freedom Flex
• Amex Platinum → Amex Gold or Blue Business Plus
• Capital One Venture X → Capital One VentureOne
• Citi Premier → Citi Custom Cash or Citi Rewards+

When Canceling Actually Makes Sense

Despite the risks to your rewards, there are legitimate situations where canceling a card is the right move:

You're Over 5/24 and Want to Get Under

If you're trying to get back under Chase's 5/24 rule to qualify for Sapphire bonuses again, closing older cards can help—but only after you've been approved for other cards you want and have redeemed all rewards.

You Have Too Many Cards to Manage

If you're juggling 15+ credit cards and can't keep track of which benefits come with which card, simplifying your wallet makes sense. Just make sure to redeem or transfer all rewards first, then close strategically starting with newest cards to preserve average account age.

The Issuer Won't Let You Downgrade

Some issuers require you to hold a card for 12 months before downgrading. If you're within that window and genuinely can't afford the annual fee, canceling might be necessary—but try calling for a retention offer first to offset the cost.

You're Leaving the Country Permanently

If you're moving abroad permanently, maintaining U.S. credit cards becomes complicated. Transfer all points to airline and hotel programs that work internationally, cash out remaining rewards, then close accounts systematically.

Special Situations and Edge Cases

What If You Have a Large Points Balance?

If you're sitting on 200,000+ points in any program, think twice before closing any card in that ecosystem:

Keep a no-fee option open indefinitely: Cards like the Chase Freedom Unlimited, Amex Blue Business Plus, or Citi Rewards+ have no annual fee and preserve your entire points balance. There's literally no downside to keeping them open forever.

Transfer strategically: Move points to multiple airline and hotel partners to diversify your holdings. Don't put all 200,000 points into a single program—if that program devalues or you can't find availability, you've lost flexibility.

Consider the opportunity cost: If you're paying a $95-$695 annual fee just to keep points alive that you're not using, you're losing money. Either use the points for travel or transfer them somewhere safe, then downgrade.

What About Business Cards?

Business credit cards follow the same rewards rules as personal cards, with one important exception: closing a business card doesn't affect your 5/24 status with Chase since business cards don't appear on your personal credit report.

If you have both personal and business cards earning the same rewards (like personal and business Amex cards earning Membership Rewards), you only need to keep one card open to preserve all pooled points. Close the one with the higher annual fee if you're not using its benefits.

What If Your Card Was Closed by the Issuer?

If your credit card issuer closes your account due to inactivity, fraud, or credit concerns, the rules around rewards vary:

Chase: If Chase closes your account, you typically have 30 days to redeem Ultimate Rewards points before they forfeit. However, Chase can be strict about this—they often don't provide extensions.

American Express: Amex may close unused cards, but as long as you have another Membership Rewards card open, your points remain safe. If it was your only card, points typically forfeit immediately.

Other issuers: Policies vary, but most provide a short grace period (30-90 days) to redeem rewards. Contact the issuer immediately if your card was closed unexpectedly to understand your options.

Frequently Asked Questions

Do credit card points expire if I don't use my card?

As long as your account remains open, credit card points typically don't expire due to inactivity. However, the issuer may close your account if you don't use the card for an extended period (usually 12-24 months), which would then trigger point forfeiture.

Can I transfer my points to someone else before canceling?

Most issuers don't allow direct point transfers to other people's accounts. However, you can transfer points to airline and hotel programs, then book travel for others using those transferred points. Some programs like Chase Ultimate Rewards allow household members to pool points if they're both cardholders.

What happens to pending points when I cancel?

Pending points typically post to your account before closure is complete, but don't count on it. If you have large purchases that haven't yet posted, wait until the points show up in your account before requesting cancellation. Some issuers may forfeit pending points if you cancel mid-cycle.

Will I lose points I transferred to airlines or hotels if I close my card?

No. Once you transfer points to an airline or hotel loyalty program, those points belong to that program, not your credit card issuer. Closing your credit card has no effect on points already living in airline or hotel accounts.

Can I reopen a closed card and get my points back?

Typically no. Once an account closes and points forfeit, they're gone permanently. Some issuers might make exceptions in rare circumstances (like accidental closure), but don't count on it. Always redeem or transfer points before closing an account.

How long should I wait after getting a retention offer before canceling?

If you accept a retention offer that requires spending (like "spend $3,000 in 3 months, get 20,000 points"), you must complete the spending requirement before canceling. Most issuers will claw back retention bonuses if you cancel before meeting terms or within 90 days of receiving the bonus.

Making the Smart Choice

The decision to cancel a credit card shouldn't be taken lightly, especially when you have significant rewards at stake. Before you call to close any account, ask yourself these questions:

Have I redeemed or transferred all my rewards? This is non-negotiable. Never cancel with points still in your account unless you're certain they'll transfer to another card in the same program.

Would downgrading make more sense? In 95% of cases, yes. Downgrading preserves rewards, protects credit score, and maintains future upgrade options—all while eliminating annual fees.

Am I making this decision based on emotion or analysis? If you're frustrated with customer service or feel like you're not getting value, take a few days to run the numbers. Sometimes annual fees are actually worth it when you account for all benefits.

Do I have a backup plan for the benefits I'm losing? If your card provides trip delay insurance, rental car coverage, or other protections you use, make sure you have those covered elsewhere before canceling.

The bottom line: credit card rewards represent real value—sometimes thousands of dollars worth. Treat them with the same care you'd give to cash sitting in a checking account. Take the time to protect your rewards before closing any account, and you'll never have to wonder what happened to all those points you worked so hard to earn.

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