Can I Cancel My Credit Card Immediately After Earning the Sign-Up Bonus?

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A credit card sign-up bonus is generally worth hundreds of dollars in free travel or cash back. It’s how the best credit cards compete for your business.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But what happens if you want to cancel the card right after getting the bonus?While it might seem like a simple way to game the system, it could have some unintended consequences. Here’s what you need to know before making that move.Credit card issuers have rules in placeCredit card companies offer sign-up bonuses to attract long-term customers, not just to hand out free rewards. To prevent abuse, issuers have strict terms and conditions that you agree to when applying for the card. These often include minimum spending requirements and rules about keeping the account open for a certain period.Canceling your credit card right after earning the sign-up bonus could put you on the issuer’s radar and lead to negative repercussions, including the possibility of losing the bonus or being blacklisted from future offers.The issuer may take back the bonusOne major risk of canceling your card too soon is that the issuer may require you to repay your sign-up bonus. Many credit card companies include language in their terms that allows them to take back rewards if they suspect abuse.For example:Chase’s 5/24 rule and bonus clawbacks: Chase is known for its strict rules on sign-up bonuses. If you close a card shortly after receiving a bonus, Chase may take back the rewards. Additionally, they may restrict you from earning future sign-up bonuses under their 5/24 rule, which limits the number of cards you can open within 24 months.American Express’s “once per lifetime” rule: Amex has a policy that typically limits welcome bonuses to once per lifetime, per card. If they suspect you’re trying to game the system, they could not only claw back your points but also prevent you from getting bonuses on future cards.Citi’s bonus terms: Citi explicitly states that if an account is closed within a certain time frame (often within 12 months of opening), they may take back any rewards earned.It can hurt your credit scoreCanceling a credit card soon after opening it can have a negative impact on your credit score in several ways:Shortens your credit history: The length of your credit history plays a role in your credit score. Closing an account reduces your average account age, which could lower your score.Increases your credit utilization ratio: Closing a credit card reduces your available credit, making your credit utilization ratio higher — this only comes into effect if you carry a balance. A higher utilization ratio will negatively impact your credit score.Leads to a hard inquiry without long-term benefit: When you apply for a credit card, the issuer performs a hard inquiry on your credit report. If you close the account too soon, you’ve taken the hit without the long-term benefit of keeping the card open.You may be blacklisted from future offersCredit card issuers keep track of customer behavior, and if they determine you’re opening and closing accounts just for the bonuses (a practice called “churning”), they may blacklist you from future offers. Some banks have even banned customers from opening any new credit accounts with them.Looking for the best credit card sign-up bonuses? Check out our top picks for the best offers available right now.What should you do instead?If you’re looking to maximize credit card rewards while keeping your financial health in check, consider these alternatives:Keep the card open and downgrade it: If the card has an annual fee and you don’t want to keep paying it, ask the issuer if you can downgrade to a no annual fee card instead of canceling outright. Check out our list of best no annual fee credit cards now.Use the card occasionally: Even if it’s not your primary card, making a small purchase every few months can help keep the account active and maintain your credit score.Wait before closing: If you still want to cancel, consider waiting at least a year before doing so. This way, you reduce the risk of losing the bonus or being flagged for churning.The bottom lineWhile it might be tempting to cancel a credit card as soon as you earn the sign-up bonus, doing so can come with serious drawbacks. From losing your rewards to hurting your credit score and even being blacklisted from future offers, the risks often outweigh the benefits. Instead, consider keeping the card open or downgrading to a no-fee card to maintain a healthy credit profile while still enjoying the rewards.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

A credit card sign-up bonus is generally worth hundreds of dollars in free travel or cash back. It’s how the best credit cards compete for your business.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But what happens if you want to cancel the card right after getting the bonus?

While it might seem like a simple way to game the system, it could have some unintended consequences. Here’s what you need to know before making that move.

Credit card issuers have rules in place

Credit card companies offer sign-up bonuses to attract long-term customers, not just to hand out free rewards. To prevent abuse, issuers have strict terms and conditions that you agree to when applying for the card. These often include minimum spending requirements and rules about keeping the account open for a certain period.

Canceling your credit card right after earning the sign-up bonus could put you on the issuer’s radar and lead to negative repercussions, including the possibility of losing the bonus or being blacklisted from future offers.

The issuer may take back the bonus

One major risk of canceling your card too soon is that the issuer may require you to repay your sign-up bonus. Many credit card companies include language in their terms that allows them to take back rewards if they suspect abuse.

For example:

• Chase’s 5/24 rule and bonus clawbacks: Chase is known for its strict rules on sign-up bonuses. If you close a card shortly after receiving a bonus, Chase may take back the rewards. Additionally, they may restrict you from earning future sign-up bonuses under their 5/24 rule, which limits the number of cards you can open within 24 months.
• American Express’s “once per lifetime” rule: Amex has a policy that typically limits welcome bonuses to once per lifetime, per card. If they suspect you’re trying to game the system, they could not only claw back your points but also prevent you from getting bonuses on future cards.
• Citi’s bonus terms: Citi explicitly states that if an account is closed within a certain time frame (often within 12 months of opening), they may take back any rewards earned.

It can hurt your credit score

Canceling a credit card soon after opening it can have a negative impact on your credit score in several ways:

1. Shortens your credit history: The length of your credit history plays a role in your credit score. Closing an account reduces your average account age, which could lower your score.
2. Increases your credit utilization ratio: Closing a credit card reduces your available credit, making your credit utilization ratio higher — this only comes into effect if you carry a balance. A higher utilization ratio will negatively impact your credit score.
3. Leads to a hard inquiry without long-term benefit: When you apply for a credit card, the issuer performs a hard inquiry on your credit report. If you close the account too soon, you’ve taken the hit without the long-term benefit of keeping the card open.

You may be blacklisted from future offers

Credit card issuers keep track of customer behavior, and if they determine you’re opening and closing accounts just for the bonuses (a practice called “churning”), they may blacklist you from future offers. Some banks have even banned customers from opening any new credit accounts with them.

Looking for the best credit card sign-up bonuses? Check out our top picks for the best offers available right now.

What should you do instead?

If you’re looking to maximize credit card rewards while keeping your financial health in check, consider these alternatives:

• Keep the card open and downgrade it: If the card has an annual fee and you don’t want to keep paying it, ask the issuer if you can downgrade to a no annual fee card instead of canceling outright. Check out our list of best no annual fee credit cards now.
• Use the card occasionally: Even if it’s not your primary card, making a small purchase every few months can help keep the account active and maintain your credit score.
• Wait before closing: If you still want to cancel, consider waiting at least a year before doing so. This way, you reduce the risk of losing the bonus or being flagged for churning.

The bottom line

While it might be tempting to cancel a credit card as soon as you earn the sign-up bonus, doing so can come with serious drawbacks. From losing your rewards to hurting your credit score and even being blacklisted from future offers, the risks often outweigh the benefits. Instead, consider keeping the card open or downgrading to a no-fee card to maintain a healthy credit profile while still enjoying the rewards.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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