Credit Card CLD and Banked Cash Rewards Question

[torebuild2014]

In light of some of the lenders either CLD or closing accounts, are you moving any of your banked rewards out? I had my first CLD with Cap one and have cash rewards with them and other lenders. I don't want to bring unwanted attention to my accounts, but also want to protect the earned cashback. What are your thoughts on the most effective strategies to moving out the cash? 

[K-in-Boston]

A CLD wouldn't impact your existing rewards.  I have not heard of any of the issuers of cards from the major points programs (MR, TYP, UR) closing cards for any reason other than abuse or prolonged inactivity.  Points earned on cobranded cards will be collected in their respective loyalty account and would be safe unless there was abuse and they were clawed back.  Cash back cards generally have a window to redeem after closure.  I don't see any reason to doing the credit card equivalent of having a run on the banks and shoving cash under the mattress.

[RSX]

Spend on that card for regular use items and use the earned cash to pay it off

when it is a cash back card, I personally redeem the money as soon as it arrives (or when it hits $25).  Cap1 is instant redemption, so I redeem Even if it is only $0.75

i have enough cards with rewards points that I wouldn't want to lose, but cash is the easiest to redeem 

[torebuild2014]

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@K-in-Boston wrote:

A CLD wouldn't impact your existing rewards.  I have not heard of any of the issuers of cards from the major points programs (MR, TYP, UR) closing cards for any reason other than abuse or prolonged inactivity.  Points earned on cobranded cards will be collected in their respective loyalty account and would be safe unless there was abuse and they were clawed back.  Cash back cards generally have a window to redeem after closure.  I don't see any reason to doing the credit card equivalent of having a run on the banks and shoving cash under the mattress.

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Thanks, I think this is information is what I was looking for. I don't usually reedem as frequently as most so didn't want to risk the cash being forfeited if for some reason a cashback card was closed for whatever reason.

[Anonymous]

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@torebuild2014 wrote:

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@K-in-Boston wrote:

A CLD wouldn't impact your existing rewards.  I have not heard of any of the issuers of cards from the major points programs (MR, TYP, UR) closing cards for any reason other than abuse or prolonged inactivity.  Points earned on cobranded cards will be collected in their respective loyalty account and would be safe unless there was abuse and they were clawed back.  Cash back cards generally have a window to redeem after closure.  I don't see any reason to doing the credit card equivalent of having a run on the banks and shoving cash under the mattress.

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Thanks, I think this is information is what I was looking for. I don't usually reedem as frequently as most so didn't want to risk the cash being forfeited if for some reason a cashback card was closed for whatever reason.

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But the word "generally" can be critical so it depends on your card.   You can also, depending on the card, lose rewards earned but not credited that month.  I lost a LOT of cash back that way when Amex closed my card (for good reason to be fair).  

As others have said, with a very limited number of exceptions (e.g. discover when you are redeeming for discounted gift cards) for cash back it makes sense to redeem as soon as you can.  Redeem into a special savings account if you are one of those that need to "feel" the reward as a lump sum.....

[Anonymous]

It makes no sense to hold onto cash back rewards, you're just risking potentially losing them. I cash out every time I'm able. 

[K-in-Boston]

+1 "generally" was purposely in that sentence.  Usually it will be covered in the card agreement.  (LTL, this is your cue to point out "usually.")

[torebuild2014]

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@Anonymous wrote:

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@torebuild2014 wrote:

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@K-in-Boston wrote:

A CLD wouldn't impact your existing rewards.  I have not heard of any of the issuers of cards from the major points programs (MR, TYP, UR) closing cards for any reason other than abuse or prolonged inactivity.  Points earned on cobranded cards will be collected in their respective loyalty account and would be safe unless there was abuse and they were clawed back.  Cash back cards generally have a window to redeem after closure.  I don't see any reason to doing the credit card equivalent of having a run on the banks and shoving cash under the mattress.

---

Thanks, I think this is information is what I was looking for. I don't usually reedem as frequently as most so didn't want to risk the cash being forfeited if for some reason a cashback card was closed for whatever reason.

---

But the word "generally" can be critical so it depends on your card.   You can also, depending on the card, lose rewards earned but not credited that month.  I lost a LOT of cash back that way when Amex closed my card (for good reason to be fair).  

As others have said, with a very limited number of exceptions (e.g. discover when you are redeeming for discounted gift cards) for cash back it makes sense to redeem as soon as you can.  Redeem into a special savings account if you are one of those that need to "feel" the reward as a lump sum.....

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Amex is one of the ones that I had been accumulating for our vacation travel and offset the expenses. Since they don't allow cashing out and only applying as a statement credit, I will have some ideas to be a bit more creative. 

I will move the rewards that I have with Cap One cards and will just reedem for a check however, I don't want to bring additional attention to the accounts while they are in the midst of CLD. I want to stay under the radar and this is the reason that I initially asked the question. Bottom line is I need to manage the cashbacks a bit differently in the current environment. 

[Anonymous]

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@K-in-Boston wrote:

+1 "generally" was purposely in that sentence.  Usually it will be covered in the card agreement.  (LTL, this is your cue to point out "usually.")

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Nah, I'm a live and let live type.   (Well, not really, why should anyone who disagrees with my absolutely correct views be entitled to continue to pollute the planet?) 

[Anonymous]

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@Anonymous wrote:

It makes no sense to hold onto cash back rewards, you're just risking potentially losing them. I cash out every time I'm able. 

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Well, as stated, there are some exceptions, such as gift cards with Discover, which can be 20% off.  If you want one, it may well be worth letting your rewards build until you have enough to redeem for one.

But otherwise, yes, I agree!