This rule will be put into effect one year after it’s signed into law and could make it easier for a consumer to try out a new card for a year, cancel it and retain the ability to use any earnings within the grace period. Currently, there is no standardized law specifying how long a cardholder has to use any accumulated rewards once they close their account.
If the law is adopted in other states, it could add an additional layer of consumer protection from issuers who try to claw back rewards without merit, simply because savvy cardholders have found ways to maximize potentially lucrative rewards programs. This past spring, reports surfaced of several American Airlines cardholders who had their accounts shut down and their rewards forfeited due to suspected fraudulent activity intended to keep their rewards balance active. Chase’s infamouswas created to discourage the practice of churning credit card bonuses.
has an option to convert your earnings into Citi ThankYou points so you can move your points to another ThankYou points-earning card. Check the terms and conditions of your specific card. Cards that earn an issuer’s specific currency, like Chase Ultimate Rewards or American Express Membership Rewards can be linked which means that you’ll likely retain your overall point balance if you close one of your cards, as long as you have another that earns the same type of points.
, know that you’ll likely have to keep it for at least a year or you won’t be eligible for that points bonanza.The rewards earned on these cards are deposited in your loyalty account for that program and shouldn’t be affected by a card closure, unless you violated the terms of any welcome bonus you received or the loyalty program’s rules. However, the airline or hotel program’s point expiration policy will apply.