Canceling a Credit Card? | Don’t Lose Your Points!

caption Hi there, it'' s Ernest from Trip Astute. In
this video, we'' re discussing what you should do before canceling your travel
credit card. (light chiming music) The end of the year is a great time to reflect on whether you'' re. getting the value you desire from your credit cards.
Often our costs. routines or travel objectives alter with life events, so it'' s healthy to re-evaluate.
whether you'' re getting the complete value from your travel charge card. In a.
previous video we explored why it'' s often worth paying a yearly fee on.
a card. I won'' t enter all the details, but I.
have some cards where it'' s worth paying the annual fee every year even if I.
wear'' t utilize the card, given that the yearly advantage is worth more than the fee.An.
example would be the Chase Hyatt and IHG cards which provide me a totally free night.
stay every year as part of my yearly cost. One thing I would caution versus is.
cancelling your card instantly after earning your opening reward. Doing so can.
harm your relationship with the provider, and absolutely jeopardize future.
applications with them. Rather, I would provide yourself a minimum of 10 months to.
evaluate whether the card is an excellent fit and whether you'' re getting worth from.
the card. So if you'' re thinking about cancelling your credit card, here are.
some fast things to consider. Number 1: Transfer or invest any remaining points.
This is a common error made by a great deal of folks. If you cancel your card, you'' ll. frequently lose the points connected with those cards.This is generally the case.
with cards associated with versatile point programs like Chase'' s Ultimate Rewards or. American Express' ' Membership Rewards. For these scenarios,.
I recommend moving your points to another card that earns the exact same type of.
points, transferring to a travel partner, or moving to a household member.
Moving to another card that makes the same points is truly simple. For.
example, here'' s a list of cards from the three major versatile points programs.
that can share points and will permit you to move their points within their.
particular household. For co-branded cards, which are essentially cards associated.
with a brand other than the company, like the Chase Hyatt or United card, the.
points are with the travel partner. In this case, you'' re normally safe to cancel. the card without losing your points. So even though you cancelled your card, the.
points are with the travel business, like Marriott or Southwest, so they won'' t. be lost.However, any charges that sanctuary'' t posted to a declaration may not make.
it to the travel partner when you cancel your card. Number 2: Ask the company for.
a retention deal. Sometimes it pays simply to ask whether you can have the yearly.
charge waived or offered a retention reward. This can be actually hit or miss out on, and I.
wouldn'' t do it unless you'' re seriously thinking about cancelling your card..
it'' s not unusual for issuers to provide rewards to keep card members from.
leaving. Number 3: Consider downgrading your.
card instead of cancelling.Since your credit history can frequently take a hit if you.
cancel a card, a better alternative is to downgrade your card to a free variation.
This can often be done with cards that earn the same kind of points..
a Chase Sapphire Preferred or Reserve card can be converted to a Chase Freedom.
or Freedom Unlimited with no yearly fee. Here are some examples of popular.
benefits cards and their no annual charge equivalents. You'' ll often lose some.
of the advantages and benefits that feature a premium card, but this approach will.
usually allow you to keep your points.Also, this method works if you'' re. restricted by an issuer'' s guidelines, such as Chase'' s 5/24 guideline, but wish to get one of.
their new cards. When I got my Chase Sapphire Reserve, I really did this. Because I.
already had a Sapphire Preferred, I downgraded it to the Freedom Unlimited.
considering that I desired the card anyway, and wanted to forfeit the new card opening.
Since I plan to keep the card for the long term, perk. Number 4: Dispose of.
your old card. Most plastic cards can be ruined in a shredder, but if your card.
is metal, you absolutely wish to send it back to the bank. Do not run it through.
the shredder because it will get stuck! Many companies can provide a pre-paid.
If you need to send out one in, return envelope. You can also drop them off with your.
Do you have any pointers for cancelling a credit.
card? If so, let us understand in the comment area below.We'' ve included referral.
links to some of the popular Chase cards. Journey Astute does get a commission.
if you use our links. It doesn'' t expense you anything additional, but it does assist us to.
continue producing content for this channel. If you enjoyed this.
video or discovered it beneficial, please strike the “” like”” button and consider subscribing.
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updates, and contests. Till next time, travel safe and travel smart. As found on YouTube – Creative Commons License.

Video Transcript:

(light chiming music) The end of the year is a great time to reflect on whether you'' re. American Express' ' Membership Rewards. In this case, you'' re normally safe to cancel. Even though you cancelled your card, the.
This can be truly hit or miss out on, and I.
wouldn'' t do it unless you'' re seriously considering thinking about your card.

License: Creative Commons