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Step 7: Don’t Cancel Your Card Too Soon

Now that you have met your minimum spending and earned your sign-up bonus, do NOT cancel your card!

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Canceling Your Card So Soon Could Put You Out of the Game!

Canceling your card right away will make the banks unhappy.  They could even decide to blacklist you.  Which would mean no more credit cards and no more Big Travel with Small Money for you!

If you have applied for cards with annual fees, you should evaluate whether or not the card is worth paying the annual fee after ~8 to 10 months.

Before canceling, read this post to find out if you will lose the miles or points which are already in your account. Read my post on When to Cancel Your Credit Card to help with your decision.

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Cancel Cards That Aren’t Worth The Annual Fee

Don’t worry about it being a hassle if you decide not to keep the card, the banks are happy to close your account for you.  You can also have the bank switch you to a card that doesn’t charge an annual fee.

While no annual fee cards typically don’t have as many benefits, this will help you keep fostering a good relationship between you and the bank.  The bank might even make this call easier for you by offering you some incentives to keep the card.  They could give you a statement credit or additional miles to help cover the annual fee.

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So I made the mistake of cancelling my Chase Sapphire Preferred card too soon because I wasn’t really using it to its fullest potential to continue paying the annual fee at that time. Assuming I would still be eligible for the card again (I understand the benefits and read amazing things from here), should I wait for the time restriction ban to get the signup bonus or should I forgo it and just get it again now since I can rack up a lot more points during the time I would be waiting instead? Thanks for the help in advance!

Hi Lisa,

How long until you’re eligible for the welcome bonus again? The Sapphire family of products has the 48 month waiting period to become eligible for another Sapphire card welcome bonus.

I’d be thinking about how many points you could earn, and also weigh how long you’d have to wait.

So for instance, if you had to wait 4 years to become eligible for a welcome bonus again, but you know you’d be able to earn a LOT more points with the Sapphire Reserve vs other cards in the meantime, I’d personally just go for the Reserve and forgo the intro bonus.

On the other hand if you only have to wait a year to become eligible for the welcome bonus, and you’d only earn marginally more points with the Sapphire Reserve, I’d probably wait.

It’s been a year since I’ve closed it, so another 3 years in my case! I applied and got approved for the Freedom Unlimited so I can earn points on there for the time being with the first year promotion. That would still be 2 years – considering your experience, would you still wait? Just making sure I don’t go through another impulsive decision and miss out on something.

2 years to wait is a long time. That would be a tough call.

I’d say if you know you could earn a ton of bonus points in the next 2 years (and I mean, a LOT more versus other cards) it might be worthwhile to apply now.

On the other hand, I’d say if there’s another card you can use in the meantime that would earn you around the same amount of points as the Sapphire Reserve, I’d likely wait until I can earn the welcome bonus again.

But that’s just what I would probably do.