Do You Lose Your Points If You Cancel Your Credit Card?

Unfortunately, many companies won’t let you keep rewards points or cash back once you close out your credit card. Unless you earn the rewards through a third party, you're likely to lose your points when you cancel your credit card.

Losing your hard-earned points is frustrating, but you do have options. Consider transferring them to another account or points program, or simply redeem them before closing out your credit card account.

The guide below explains all of this in more detail and walks you through options for using your points before cancelling your card.

Rewards programs in Canada

Credit card issuers and third-party companies set the terms and conditions of the best rewards programs in Canada – including whether or not you can keep your points after cancelling a credit card.

As a rule of thumb, if you only earn points by using a specific credit card, you probably won’t be able to keep them. However, if you earn points by using a credit card tied to a third-party point system, such as Aeroplan, then you likely can.

Credit card rewards programs

Credit card rewards programs are exclusive to certain banks, credit unions, and credit cards. For example, RBC owns Avion Rewards, Desjardins owns BONUSDOLLARS, and National Bank owns the À La Carte Rewards program. Cancelling your card generally closes your rewards account, as well, sending all your hard-earned points into the void.

In general, the only way to save them is to transfer them to another person’s account, convert them into third-party rewards points, or redeem them before cancelling your card – if the company allows it, that is. You’ll have to contact customer service or read the guide below to find out.

Be warned that you’ll lose any cash back you’ve earned but haven’t redeemed if you cancel a cash back credit card. If you can, cash out your rewards before cancelling. This might mean you have to wait until the card’s anniversary (if that’s when the issuer awards cash back).

Third-party rewards programs

Third-party rewards programs are free and award points when you buy certain goods or services or shop at certain stores. Think McDonald’s Rewards, the Marriott Bonvoy program, or Tims Rewards.

Because they aren’t tied to a specific card, you can safely cancel your credit card without losing your points. That’s not to say that credit card issuers don’t also manage third-party programs – some of the best third-party rewards programs in Canada belong to major banks.

How to cancel a credit card without losing your points

You may be able to hold onto your points even if your current rewards credit card isn’t working out. Before cancelling your card, try:

• Converting your points into rewards points for a different rewards program like Aeroplan, Hilton Honors, Delta SkyMiles, etc.
• Gifting/transferring your points to someone
• Redeeming your points for rewards
• Pooling your points with several family members
• Transferring your points to a new or existing credit card in your name from the same company

Not every rewards program will let you convert, gift, or transfer points, but it doesn’t hurt to ask. Some companies, like BMO Rewards, may even be able to reinstate your points if you change your mind and re-apply for a credit card.

Do you lose points if your credit card company cancels your card?

Cancelling your own credit card isn’t the only way to lose points. You could forfeit all your rewards permanently if:

• Your credit card company cancels your card for inactivity
• Your credit card company cancels your card for missing payments
• You’re caught churning or applying for multiple credit cards for the welcome bonuses

Third-party companies can also close your account if it’s inactive for 18 to 24 months (depending on the card) or if you break the rewards program’s terms and conditions. In both cases, your points are usually lost forever.

FAQ

What happens to my points if I cancel a credit card?

Typically, when you cancel your credit card you will lose the points, unless the points are with a third-party program. You can usually redeem, transfer, or gift your points before cancelling a card, so you don't lose them.

Can I cancel a credit card without losing my points?

If your credit card uses a third-party program, you'll likely be able to keep your points when you cancel your credit card. You may also be able to transfer or convert your points to a partner program.

Do I keep my Aeroplan points if I cancel my credit card?

Yes, Aeroplan is a third-party program and you can collect points without having a credit card attached to your account. However, if there is no account activity during an 18-month period, your points will expire.

Is it better to close a credit card or leave it open with zero balance?

This depends on the situation. Closing a credit card increases your credit utilization ratio, which can decrease your credit score. However, if you're struggling with spending and debt, it's a better idea to close the account.