Canceling a credit card often brings relief from annual fees or overextended finances, but it can also create anxiety over losing hard-earned rewards. Understanding how your points or miles behave after account closure empowers you to make confident, well-informed decisions. Whether you hold a co-branded airline card or a flexible bank rewards card, knowing the rules inside out ensures you protect your balance and maximize every benefit you’ve accumulated.

In this guide, we explore the fate of points when you close your account, strategies to preserve them, and critical deadlines you must meet. Armed with this knowledge, you can redeem, transfer, or downgrade your card with complete peace of mind before clicking “cancel.”

First, a quick primer on the two main reward program types and how they differ in ownership and control.

Understanding Your Reward Program Type

Your credit card may participate in one of two broad reward ecosystems. Each handles points differently after card cancellation.

• Co-branded Credit Cards: Linked to an airline or hotel loyalty program, such as Delta SkyMiles or Marriott Bonvoy. Points post directly to your external loyalty account and are managed by that program.
• Bank Proprietary Programs: Flexible points cards like Chase Ultimate Rewards or American Express Membership Rewards. Points remain within the issuer’s portal until redeemed or transferred to partners.

Recognizing your card’s category is the first step to deciding whether you can safely close the account without forfeiting any rewards.

How Card Cancellation Impacts Your Rewards

When you close a co-branded card, any points already in your airline or hotel account remain safe under normal circumstances. These points are no longer linked to your credit card once posted. However, if you cancel before points transfer from the bank’s portal, you risk losing them.

By contrast, canceling a flexible points card often triggers immediate forfeiture of any remaining balance—unless you hold at least one other card in the same family. Without an open account tying to that rewards currency, you will forfeit any unredeemed points upon closure.

Even if you maintain another card, you might lose specific category bonuses and benefits tied to the canceled product. Always verify what perks remain available in your issuer’s ecosystem before making changes.

Strategies to Protect Your Rewards

Proactive planning can save your points and miles. Follow these proven tactics before requesting cancellation:

• Transfer all eligible points to airline or hotel partners—ensure they post before account closure.
• Redeem for statement credits or gift cards, converting points into tangible value.
• Downgrade to a no-fee card within the same issuer family to maintain your reward balance.
• Coordinate timing with annual fee reversal policies—some banks allow a refund if canceled within 30 days.

If you hold multiple cards earning the same proprietary points, keep one open. This approach preserves your currency and ensures you never lose the rewards you’ve worked to accumulate.

Key Deadlines and State-Specific Protections

Issuers typically enforce immediate point forfeiture upon account closure, but certain jurisdictions offer additional time to redeem. For example, New York State requires a 45-day notice of program changes and grants a 90-day redemption period post-closure.

Beyond state regulations, hotel and airline loyalty programs impose their own inactivity expiration. Inactivity can range from 12 to 24 months for most chains—and some, like Best Western, never expire if the account remains active. Although cancelling your card does not directly erase points in external loyalty accounts, losing cardholder benefits (e.g., annual free night certificates) can make maintaining program activity more challenging.

Review the table below for a summary of how points fare when you cancel various card types:

Final Thoughts and Next Steps

When deciding whether to cancel a credit card, consider both immediate financial relief and the long-term impact on your reward balances. With clear knowledge of program rules and a step-by-step plan, you can safeguard every point and mile you’ve earned.

Before hitting the cancel button, take a moment to:

1. Audit your point balances across all programs.
2. Choose a redemption or transfer strategy.
3. Confirm any state-specific protections that apply to you.

By following these guidelines, you’ll turn a potentially costly decision into an opportunity to reap maximum value from your credit card rewards. Empower yourself with information, plan ahead, and enjoy the benefits you’ve rightfully earned.