Million Mile Secrets reader, Reggie, commented:
My Citi ThankYou Premier card annual fee is coming due soon. I already used Citi ThankYou Points earned on this card to book flights. If I cancel the card, will my flights get canceled?
Great question, Reggie!
There will be no changes to Reggie’s scheduled flights if he cancels the Citi ThankYou Premier card.
When Reggie booked flights through the Citi travel portal, he essentially paid with a cash equivalent.
If he needs to change or cancel the booked flights in the future, he’ll deal directly with the airlines. So it won’t matter if his Citi card is active.
When You Redeem Credit Card Points for Airfare, You Can Take-Off as Planned! Even If You Cancel Your Card, There Will Be No Changes to Your Scheduled Flights!
I’ll explain why booking through credit card travel portals can be a good idea. And what Reggie should consider before canceling his Citi card!
Use Credit Card Points for Flights Through Bank Travel Portals
Link: Book International Flights With Citi ThankYou Points!
Link: How to Get $500 Worth of Travel With NO Blackout Dates
Link: Save Points (and Money) Using the Chase Ultimate Rewards Travel Portal
Major banks like AMEX, Chase, and Citi have credit cards that earn flexible points. Usually, you’ll get the most Big Travel by transferring these flexible points directly to airline and hotel partners.
But sometimes, it makes sense to redeem credit card points through the bank’s travel portal, like with Citi. This can be a good deal if you:
- Don’t have enough miles to book a regular award flight
- Use fewer points than a regular award flight
- Want the flexibility of NO blackout dates
- Want to earn elite qualifying miles toward airline status
For example, I searched last-minute holiday flights from San Francisco to New York (JFK) on the Citi travel portal. And you can use Citi ThankYou points for flights that might otherwise be blacked-out for award travel.
Use Citi ThankYou Points to Book Last Minute Holiday Flights Through the Citi Travel Portal Without Thinking About Blackout Dates!
And folks like Reggie can get a better deal booking flights this way. Because rewards points on certain credit cards are worth more through bank travel portals.
For example, when booking flights through the Citi travel portal, Citi ThankYou points are worth:
- 1.25 cents each with the Citi ThankYou® Premier Card
- 1.33 cents each with the Citi Prestige® Card for all airlines except American Airlines
- 1.6 cents each with the Citi Prestige® Card for American Airlines flights
Note: Beginning July 23, 2017, Citi ThankYou points with the Citi Prestige card will be worth 1.25 cents each toward flights.
Booking American Airlines Flights Through the Citi Travel Portal Is a Great Deal for Folks With Citi Prestige. But This Will Change Starting July 23, 2017!
And other banks offer similar bonuses. For example, with the Chase Sapphire Reserve, your Chase Ultimate Rewards points are worth 1.5 cents each when you book travel through the Chase travel portal.
Using points to book through bank travel portals is basically the same as paying with cash. This means you can use credit card rewards points, then cancel the credit card. And nothing will happen to your flight plans.
Keep in mind, there’s no scenario where you can get your credit card points back. If you booked a flight but plans changed, you’ll be subject to each airlines’ policy for changing or canceling paid airfare. You’ll likely have to pay a fee to change your flight or request a credit for future travel.
3 Things to Consider Before Canceling a Credit Card
Link: How to Get Your Annual Fee Waived
Link: New Citi Rules Restrict Sign-Up Bonuses to Once per “Brand” Every 24 Months
Link: When Should You Cancel Your Credit Cards?
Reggie plans to cancel his Citi ThankYou Premier card because the annual fee will hit soon.
But before he does, there are things to consider.
1. Retention Bonus
First, Reggie can call the bank to see if they’ll consider waiving the annual fee.
If not, he can see if they’re offering a retention bonus. Sometimes getting extra bonus points makes it worth keeping the card open another year.
Folks interested in retention offers should check the FlyerTalk thread to see what others got on the same card.
Before Canceling a Card, Contact the Bank to See If You Can Get a Retention Offer! Sometimes They’ll Credit All or Part of the Annual Fee, or Give You Bonus Points!
2. Future Sign-Up Bonus Eligibility
Remember, Citi now restricts new sign-up bonuses to folks who have opened OR closed ANY Citi ThankYou card in the past 24 months.
So if Reggie closes his Citi ThankYou Premier card, he will be unable to earn a new ThankYou points sign-up bonus for 24 months.
If Reggie hasn’t already had the card open for 24 months, he might consider waiting until then to cancel. Because after 24 months, he can apply for another Citi card that earns ThankYou points, like Citi Prestige.
This way he’ll be able to earn a new sign-up bonus. And have the option to cancel his old Citi ThankYou Premier card to restart the 24-month cycle.
3. Downgrade to a No Annual Fee Card
Instead of canceling a card, which could impact your credit score, Reggie might consider downgrading to a no annual fee card.
Because converting to a no annual fee card does NOT require a new credit pull. And you can keep your existing credit line! This helps you build a long-term relationship so you can get approved for more cards in the future.
You’ll Save Money on Annual Fees by Downgrading to a No Annual Fee Card
For example, Million Mile Secrets team member Keith downgraded his Citi ThankYou Premier card to a Citi Double Cash card to save on the annual fee.
Remember you’re not eligible to earn a sign-up bonus on the new card you downgrade to.
Bottom Line
You don’t have to worry about changing your flight plans if you paid with rewards points from a credit card you canceled.
Because using points through a bank’s travel portal, like Citi ThankYou, is essentially like paying with cash. After you book, any changes or cancellations must be handled directly with the airline.
Before canceling a credit card, always remember to check with the bank for retention offers. Or see if it makes sense to downgrade to a no annual fee card so there’s no impact to your credit score.
Thanks for the question, Reggie!
