Can I Transfer My Benefits to Another Card?

When You Should Consider Transferring Rewards

Many credit card companies offer excellent rewards and bonus programs to incentivize cardholders to apply for their credit cards. For many credit card owners, this means that they can acquire an abundance of points in just a short period of time. 

However, cardholders are sometimes placed in the tricky situation of having plenty of rewards points on an account that they are looking to close soon. If you are closing your account for any reason, you could lose all of your points. Here’s some information that could help you retain those points, even if you are closing your card account. 

Closing Your Account

Switching cards is the most common situation that can lead to losing all of your points.  There are a couple of steps that you should follow in order to successfully close a card account and possibly save all of your points. 

1. Discuss any remaining fees with your credit card issuer. Most people assume that if their statement balance has been paid in full that they have fully paid off their credit card fees. However, cardholders need to inquire about their payoff amount, since this includes interest and other charges.
2. If possible, redeem the points you have accumulated. We will discuss other options further down in this article, but the best option is to redeem your points if possible prior to closing your account. This is the most likely way to be able to redeem your points for their full value instead of a limited amount. 
3. It is also important to update your automatic payment settings. If you are opening a new account, switch your automatic payment settings to your new account in order to avoid any unnecessary late fees.
4. Double-check that your balance is paid in full to ensure that you will not have to pay additional interest charges or late fees.
5. Finally, you can close your account and dispose of your card.

When You Should Close Your Account

There are a variety of different factors that could influence your decision to close your account. Many times cardholders use a certain card to help build their credit and then try to upgrade to a card with more rewards. 

If you already have a strong rewards program, you might even consider switching to a simpler rewards program with a lower annual fee. Whatever the reason, there is something every cardholder should consider before closing their account. 

If you have a sign-up bonus with the card you currently use, you definitely should not close your account within the first year of opening. By keeping your account open for at least a year, you ensure that you receive the sign-up bonus. This is especially important for cards with extremely generous sign-up bonuses. 

Transferring Your Rewards Points

As previously stated, the most efficient way to maximize your rewards points is to redeem them in full before closing your account. Do you have a dream vacation in mind you have always wanted to take but never could? Now might be your chance.

However, sometimes that isn’t always possible, as closing your credit card account could be a time-sensitive issue. If that is the case, many cards actually have options to transfer points elsewhere. Here are some of the possible options for transferring benefits that you could consider. 

Co-Branded Travel Cards 

If you have a co-branded travel card, these cards typically automatically transfer rewards earned from your credit card to a loyalty program on a monthly basis. This means that your points will not be tied to your credit card, and you can close your account with peace of mind that your rewards will not be lost.

Transferring to a Similar Rewards Card 

Some card issuers will actually allow you to transfer your rewards to another card with a similar rewards program or to the hotel or airline loyalty program associated with your card. 

Since different banks offer different policies on transferring rewards, it is crucial that the cardholder inquires what their banks’ specific policy is before deciding on the timing of closing their account.

Transferring Points Within a Bank

In many cases, if you close your account and open another card from the same bank, they will allow you to transfer some, if not all, of your reward points. This can be a strong incentive for cardholders to remain loyal customers to their bank of choice, but there are other incentives you should consider as well.

In some scenarios, if you keep your same bank issuer, you do not even have to pay for the application fee of a new card. Additionally, if you are transferring within a bank, the bank already has extensive information on your credit history. This means that often your bank will not do a hard check on your credit score. This is extremely beneficial to cardholders since hard checks on their credit score can actually lower it in the process.

Trading in an old card for a new one at the same bank can also allow cardholders to swap for a card with no, or a lower, annual fee. 

In general, it is extremely important to have a conversation with your card issuer about the state of your rewards points. In most cases, card issuers value customer loyalty and will be flexible on whether or not you can transfer some of your points to your new card. 

This is a win-win situation; the bank gets to keep a loyal customer, and you get to keep your rewards. However, it is important to note that banks will be less incentivized to keep you as a customer if you have a bad payment history, so always ensure sure that you are being an excellent customer.

Bottom Line

Ultimately, the ability to transfer your rewards to a new card varies by each bank. Even if you are pretty sure of your bank’s policies, it is still a good idea to inquire with the bank issuer to double-check and ensure that there are no surprises. 

If you can, we still recommend that you redeem your points in full before closing your account, since this is the only way to ensure you are able to keep all of your points. 

Otherwise, your best bet is to open a new card with the same bank. This improves your chances of being able to keep some, if not all, of your reward points. New banks are less inclined to do you any favors, but your current bank can be flexible if you are one of their loyal customers.