What To Know
- Canceling a credit card can have a negative impact on your credit score, especially if it’s a long-standing account.
- If you cancel your Southwest Credit Card before the end of the annual fee period, you may be eligible for a refund of the prorated fee.
- However, if you have a substantial number of points and plan to use them soon, it’s advisable to keep your card active and redeem your points before canceling.
As you embark on your financial journey, managing credit cards becomes an integral part of it. One of the most popular travel rewards cards is the Southwest Credit Card, offering lucrative bonuses and perks. However, circumstances may arise when you need to cancel your card. But what happens to your precious points? Can you cancel Southwest credit card and keep points?
Understanding the Southwest Credit Card Cancellation Policy
No, unfortunately, when you cancel your Southwest Credit Card, you will lose all the accumulated Rapid Rewards points. This is because these points are tied to your card account and are non-transferable.
Exploring Alternative Options
While you cannot keep your points after canceling your Southwest Credit Card, there are alternative options you can consider:
1. Redeem Points Before Cancellation
Before canceling your card, diligently redeem all your Rapid Rewards points for flights, gift cards, or other rewards. This ensures you maximize the value of your points before they expire.
2. Transfer Points to a Partner Program
Southwest has partnerships with various airlines and hotel loyalty programs. If you have an account with one of these partners, you can transfer your Rapid Rewards points to their program. However, this may incur transfer fees and other restrictions.
3. Convert Points to Cash
If you don’t have any immediate travel plans, you can convert your Rapid Rewards points to cash. However, the conversion rate is typically lower than the value you would get by redeeming them for flights or gift cards.
Exceptions and Special Circumstances
In certain rare circumstances, Southwest may allow you to keep your points after canceling your card:
1. Account Closure Due to Southwest’s Error
If Southwest cancels your account due to an error on their part, you may be eligible to retain your points. Contact customer service to inquire about this possibility.
2. Special Promotions or Offers
Occasionally, Southwest offers promotions or deals where you can keep your points after canceling your card. These promotions are typically limited-time offers, so be sure to check with Southwest for any current incentives.
Other Considerations
1. Impact on Credit Score
Canceling a credit card can have a negative impact on your credit score, especially if it’s a long-standing account. Closing a card reduces your available credit and increases your credit utilization ratio.
2. Annual Fee Refund
If you cancel your Southwest Credit Card before the end of the annual fee period, you may be eligible for a refund of the prorated fee. Contact customer service to inquire about this.
Final Note: Weighing the Options
Deciding whether to cancel your Southwest Credit Card and keep points is a personal choice that depends on your individual circumstances. If you don’t have immediate travel plans or other ways to redeem your points, it may be best to cancel your card and avoid paying annual fees. However, if you have a substantial number of points and plan to use them soon, it’s advisable to keep your card active and redeem your points before canceling.
Questions We Hear a Lot
1. Can I transfer my Rapid Rewards points to another person?
No, Rapid Rewards points are non-transferable and can only be redeemed by the cardholder.
2. What happens to my Companion Pass if I cancel my Southwest Credit Card?
Your Companion Pass will expire if you cancel your qualifying Southwest Credit Card.
3. How long do Rapid Rewards points expire?
Rapid Rewards points expire after 24 months of inactivity. Activity includes earning or redeeming points.
