Getting rid of a credit card - Revision history

Editor at 22:05, 5 July 2021

2021-07-05T22:05:50Z

Editor: Editor moved page Getting Rid of a Credit Card to Getting rid of a credit card without leaving a redirect

2021-02-19T04:41:57Z

Editor moved page Getting Rid of a Credit Card to Getting rid of a credit card without leaving a redirect

Editor: /* Other guidelines for getting rid of your card */

2021-02-15T23:12:41Z

‎Other guidelines for getting rid of your card

Editor: /* Don't lose your points */

2021-02-15T23:09:25Z

‎Don't lose your points

Editor: /* Other guidelines for getting rid of your card */

2021-02-15T23:06:25Z

‎Other guidelines for getting rid of your card

Editor at 19:49, 12 February 2021

2021-02-12T19:49:34Z

Editor: /* Consider "product changing" your card instead of cancelling it */

2021-01-31T23:21:16Z

‎Consider "product changing" your card instead of cancelling it

Editor at 23:20, 31 January 2021

2021-01-31T23:20:17Z

Show changes

Editor: /* Don't lose your points */

2020-04-30T20:06:38Z

‎Don't lose your points

Editor at 17:58, 28 April 2020

2020-04-28T17:58:25Z

Show changes

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 <li>'''Citibank ThankYou Points'''. Citibank is the most problematic program. While you can combine your points into a single account, each point is still associated with the card (or banking account) that earned it. If you cancel your card, any points that you earned from that card will expire 60 days later. You can transfer them to another account holder instead, but that only extends the deadline to 90 days.</li>
-You can, however, downgrade the card and hold onto the points. The ThankYou Rewards+ card is a good no-annual-fee option. Converting the card will let you keep the points you earned, but you WON’T be able to transfer them to hotel or airline partners. If you want to continue to be able to transfer your points, you’ll need to hold onto (or convert into) the Premier or Prestige cards and continue paying an annual fee.
+You can, however, downgrade the card and hold onto the points. The ThankYou Rewards+ Card and Custom Cash Card are good no-annual-fee options. Converting the card will let you keep the points you earned, but you WON’T be able to transfer them to hotel or airline partners. If you want to continue to be able to transfer your points, you’ll need to hold onto (or convert into) the Premier (or Prestige) Card and continue paying an annual fee.
-While the points from the Double Cash Card can be converted into ThankYou points, it isn't considered a ThankYou points card. If you downgrade a Premier or Prestige Card to the Double Cash card, your points will still expire.
+While the points from the Double Cash Card can be converted into ThankYou points, it isn't considered a ThankYou points card. If you downgrade a Premier (or Prestige) Card to the Double Cash card, your points will still expire.
 <li>'''Bank of America Points'''. You'll lose your points if you cancel your card. However, points can be freely transferred to another rewards card or to a friend or family member. If you have the Premium Rewards card, points can be transferred out as cash.</li>
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 <li>'''You can never product change between a personal and a business card''', in either direction, even if they are both in the same family.</li>
-<li>'''Many banks limit you to product changes within the same family, but a few banks will let you product change to any of their cards'''. For example, with Chase you can only convert one of the Southwest Airlines cards to a different Southwest Airlines credit card, but with Citibank you could convert an American Airlines card to a Citi Prestige card.</li>
+<li>'''Many banks limit you to product changes within the same family, but a few banks will let you product change to any of their cards'''. For example, with Chase you can only convert one of the Southwest Airlines cards to a different Southwest Airlines credit card, but with Citibank you could convert an American Airlines card to a Citi Premier Card.</li>
 </ul>

← Older revision		Revision as of 23:12, 15 February 2021
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	<li>(advanced) '''Lower your credit limit on your Bank of America cards before you cancel them'''. According to [//www.doctorofcredit.com/tip-reduce-credit-limits-on-bank-of-america-cards-before-cancelling/ Doctor of Credit], there is a glitch in Bank of America's system where a cancelled credit card will still count against your overall credit limit for another year. If you lower your credit limit before you cancel, you will have more credit capacity at BOA to get a new card.</li>		<li>(advanced) '''Lower your credit limit on your Bank of America cards before you cancel them'''. According to [//www.doctorofcredit.com/tip-reduce-credit-limits-on-bank-of-america-cards-before-cancelling/ Doctor of Credit], there is a glitch in Bank of America's system where a cancelled credit card will still count against your overall credit limit for another year. If you lower your credit limit before you cancel, you will have more credit capacity at BOA to get a new card.</li>
		+
		+	<li>(advanced) '''Consider transferring your credit limit to another card from the same bank'''. Usually you increase the credit limit of another card by a significant fraction of the limit of the card you are about to close. This keeps your credit utilization low. On the other hand, if your credit limit is high, you may want to lower your overall credit to make it more likely to be approved for other cards.</li>
	</ul>		</ul>

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 <ul class="bulletlist">
-<li>'''If your credit card earns frequent flyer miles or hotel points, you don’t need to worry'''. The points are deposited directly into the airline or hotel's loyalty program. Cancelling the credit card won't have any effect on your existing points (or certificates). </li>
+<li>'''You want to make sure all your purchases have had a chance to post and qualify for rewards'''. In some cases that means that you need to wait for your your statement to close. Try to plan ahead of time, so that you don't need to choose between missing out on some points and keeping the card open past the deadline.</li>
 Like with any other airline or hotel points, you just need to make sure to keep your airline or hotel account active. Without the credit card, there is an increased risk that you'll go a long time without earning any points, so make sure to keep an eye on your loyalty accounts. {{Link|point expiration}}.

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 <ul class="checklist">
-<li>'''Download your statements'''. While you usually can still access any closed accounts, it isn't always possible on every bank's website. To be sure you have any records you need, download your statements before you cancel.</li>
+<li>'''Download your statements'''. While you usually can still access any closed accounts, it isn't always possible on every bank's website. To be sure you have any records you need, download your statements before you cancel. We like to keep a separate folder for each year and add the name of the card to the beginning of the filename (if it isn't there already). If we have more than one copy of a card in the household, we add an extra identifier to the statements to make sure each card's statements are grouped together. </li>
 <li>'''Try to avoid cancelling your “oldest” credit cards'''. The duration of your longest-held account plays a significant role in your credit report. Try to avoid cancelling this card, unless you have another card that you’ve had for a similar length of time. If your oldest card has an annual fee, which you no longer want to pay, you can usually “downgrade” it to a different no-annual-fee card and still keep the account open. Just call in and talk to a customer service representative.</li>

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 {{seo|description=Step by Step checklist for cancelling a credit card. How to make sure you don't lose your points.}}
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← Older revision	Revision as of 04:41, 19 February 2021
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 <ul>
-<li>'''In many cases, it can insure you keep your remaining award points'''. As discussed above, as long as you have at least one card in most bank-run rewards programs, you'll maintain access to your points. Rather than cancelling your last card, you can convert it to a free or less-expensive one and you won't need to take any alternative steps to take care of your points. Even with Citibank's ThankYou program, if you convert a ThankYou card to another ThankYou card, you won't lose access to that card's points.</li>
+<li>'''In many cases, it can ensure you keep your remaining award points'''. As discussed above, as long as you have at least one card in most bank-run rewards programs, you'll maintain access to your points. Rather than cancelling your last card, you can convert it to a free or less-expensive one and you won't need to take any alternative steps to take care of your points. Even with Citibank's ThankYou program, if you convert a ThankYou card to another ThankYou card, you won't lose access to that card's points.</li>
 <li>'''It is often the best way to get a card that has a low signup bonus'''. There is an opportunity cost to every card you sign up for. If a card you want has a low signup bonus, you may be better off getting a related card with a better bonus. At the end of the initial year, you can convert it to the card you wanted for the long run. For example, if you wanted the Bank of America Cash Rewards, rather than getting it and its $200 bonus, you could sign up for the Bank of America Premium Rewards card with a $500 bonus, and then convert it to the Cash Rewards card after a year.</li>

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 <li>'''If the card earns cash back, make sure to cash out before you cancel'''. With most cashback credit cards, you need to take a specific action to receive the value of your accumulated balance.</li>
-<li>'''If the card has points that only provide good value when used to purchase travel, try to use them for a reservation before you cancel'''. It is best to use them at your first opportunity during the year, so you won't have a significant balance when it is time to cancel your card. If not, you hopefully will have an opportunity to use them to book a future trip, even one that is happening after you cancel your card. Otherwise, you might be able to take advantage of some of the other options listed below.</li>
+<li>'''If the points can be used to "erase" a travel purchase, you can easily make a refundable reservation'''. You'll need to find a prepaid, but refundable, reservation so that the charge immediately shows up on your statement. Among other possibilities, some hotel reservations and most AirBnB reservations work this way and you can freely cancel any US-based flight in the first 24 hours.  After you apply the points to the charge, simply cancel the reservation.</li>
-With points that can be used to "erase" travel purchases, you can sometimes "cash-out" your points by making a prepaid (but refundable) reservation and then cancelling it.  Since Southwest Airlines doesn't charge fees to refund your reservation to your Southwest account, you can also often convert points into a Southwest credit.
+<li>'''If the points only provide good value when used to purchase travel through the bank's website, try to use them for a reservation before you cancel'''. It is best to use them at your first opportunity during the year, so you won't have a significant balance when it is time to cancel your card. If not, you hopefully will have an opportunity to use them to book a future trip, even one that is happening after you cancel your card. Otherwise, you might be able to take advantage of some of the other options listed below.</li>
 <li>'''If the credit card earns points as part of the credit card company’s own rewards program, you'll need to be more careful'''. If you simply cancel your card, you could lose any remaining points. There are four basic approaches you can take, although not all of them are available for every card.</li>