Closing Co-Branded Cards
We see a lot of confusion when discussing certain kinds of cards in the points and miles hobby – specifically, co-branded credit cards. In this article we'll answer some key questions: Why are they called ‘co-branded cards'? When do I get my points? And perhaps most importantly, will I lose my points or miles when closing co-branded credit cards? This is a question that comes up almost daily in our Facebook group. Unfortunately, it doesn’t help that bank representatives give bad or wrong information almost daily as well. So let's break it down.
What Are Co-Branded Credit Cards?
We use the term co-branded credit cards to refer to any credit cards that are associated with a specific brand, rather than the credit card issuer (bank or financial institution) itself. These cards do not have points or miles that are a transferable currency so they stay with the program you earn them in. Airline and hotel brands are the most common co-branded card partners that we discuss.
Examples of Co-branded Credit Cards:
- Hyatt credit cards issued by Chase
- IHG credit cards issued by Chase
- Marriott credit cards issued by Chase or American Express
- United credit cards issued by Chase
- Southwest credit cards issued by Chase
- And more…
How Do The Points Work?
When you spend on your co-branded cards, those points or miles get sent to your brand-specific loyalty account after each statement. This generally takes anywhere from 1 to 3 days after the statement date. They then are part of that loyalty program and use them by booking with that program. So if you have American Airlines (AA) Miles, you can only use them on the AA website. Or if you have Hyatt points, you can use them on the Hyatt website.
Will I Lose My Points and Miles if I Close My Card?
It is important to know that these points are sent to your loyalty account monthly as noted above. This means that means the points now fall under the rules of the loyalty program, not the credit card. So while yes you can lose them, that falls into a different category and has nothing to do with your credit card. We cover all the hotel and airline expiration date policies as well.
Unfortunately, representatives tell customers all the time that they will lose their points when you are trying to cancel a card. This is NOT TRUE. I know people do not believe us when we say this but representatives are wrong and give a lot of bad information frequently.
There is a caveat to this: if you close the Citi AA business card you may lose the ability to access and transfer miles from your AAdvantage Business Account. The best practice then is to move the miles to your personal AAdvantage account before closing the business card.
Co-Branded Credit Cards: ToP Thoughts
Earning airline miles or hotel points directly can be a valuable part of your strategy once to have once you have moved beyond transferable currency earning. And earning them through a co-branded card can be a great way to continue to earn them quickly. Understanding when the points and miles post and the rules behind them can help you as you move forward. Have you thought you would lose your points before? Come and share your thoughts in the ToP Facebook Group.
