Negative points balance account closure

[Anonymous]

Can i close a credit card with a negitive reward points balance? would it negitivley affect my credit score?

[Remedios]

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@Anonymous wrote:

Can i close a credit card with a negitive reward points balance? would it negitivley affect my credit score?

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Would you please elaborate on what you mean by "negative rewards balance" 

[NRB525]

Yes, please provide specifics. 

With AMEX Delta, I believe with the SkyMiles “Fly Now” option the cardholder is on the hook to pay for those miles if not replaced with points from future spend.  

[SBR249]

I've never heard of a negative rewards balance but interesting to hear that it's a thing. 

I imagine that it'll be a lot like what happens when banks have to clawback sign up bonuses if it turns out later on that you failed to meet all the requirements. There will be a conversion rate for how much the points are worth, and if your account is closed, you'll be sent a bill with balance due for the amount that the negative rewards balance is worth. 

[Anonymous]

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@NRB525 wrote:

Yes, please provide specifics. 

With AMEX Delta, I believe with the SkyMiles “Fly Now” option the cardholder is on the hook to pay for those miles if not replaced with points from future spend.  

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I think this must be the case, I don't know of any other card that allow you to "borrow" rewards. I guess it also depends on how many points were're talking about, a few hundred to a thousand. Or several thousands. They may or may not forgive a small amount. But it does state that you're responsible for repaying said points. Not sure if it would have a negative impact when closing the card though, as it's technically not a cash balance. But if left unpaid for too long, I think they would persue that matter as a default and report to CRAs.

I'm sure some people have considered using this method to take a trip, thinking the CCC couldn't/wouldn't come after them for rewards.

[UpperNwGuy]

What is a negative points balance?

[BrokenBones]

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@UpperNwGuy wrote:

What is a negative points balance?

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I assume it's getting points for a purchase. Redeeming the points. Then returning the purchase and thus being negative in points. 

[Anonymous]

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@BrokenBones wrote:

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@UpperNwGuy wrote:

What is a negative points balance?

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I assume it's getting points for a purchase. Redeeming the points. Then returning the purchase and thus being negative in points. 

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Yes, or any other thing that causes points earned to be taken back after redemption.    On my Discover Miles, I had a balance of -$0.15 cents or so.   I had redeemed all my points after the first year and S/D my card.  2 years later, some service discovered that I had been overcharged and automatically refunded the difference to the card.   Discover send me a check for the created credit balance but set the rewards negative.

This year I PCd to a Discover IT and started charging, and the rewards balance in now positive.   If I had closed, not sure if they would have asked for the 15c, might not have been cost effective!

[Anonymous]

yup that is correct, i cancled a $4,500 airline ticket and i have around -13,000 points avalaible...look at screent shot below...negative rewards points

[Anonymous]

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@Anonymous wrote:

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@NRB525 wrote:

Yes, please provide specifics. 

With AMEX Delta, I believe with the SkyMiles “Fly Now” option the cardholder is on the hook to pay for those miles if not replaced with points from future spend.  

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I think this must be the case, I don't know of any other card that allow you to "borrow" rewards. I guess it also depends on how many points were're talking about, a few hundred to a thousand. Or several thousands. They may or may not forgive a small amount. But it does state that you're responsible for repaying said points. Not sure if it would have a negative impact when closing the card though, as it's technically not a cash balance. But if left unpaid for too long, I think they would persue that matter as a default and report to CRAs.

I'm sure some people have considered using this method to take a trip, thinking the CCC couldn't/wouldn't come after them for rewards.

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@Anonymous wrote:

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@NRB525 wrote:

Yes, please provide specifics. 

With AMEX Delta, I believe with the SkyMiles “Fly Now” option the cardholder is on the hook to pay for those miles if not replaced with points from future spend.  

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I think this must be the case, I don't know of any other card that allow you to "borrow" rewards. I guess it also depends on how many points were're talking about, a few hundred to a thousand. Or several thousands. They may or may not forgive a small amount. But it does state that you're responsible for repaying said points. Not sure if it would have a negative impact when closing the card though, as it's technically not a cash balance. But if left unpaid for too long, I think they would persue that matter as a default and report to CRAs.

I'm sure some people have considered using this method to take a trip, thinking the CCC couldn't/wouldn't come after them for rewards.

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  The Chase UR agreement says, for example: "Points aren’t your property and have no cash value. " so it might be hard for an issuer to demand payment.