Spirit Airlines Credit Cardholders: Free Spirit Points Aren't Redeemable Right Now. Here's What to Do

Why It Matters

The loss of redeemable points eliminates the primary benefit of the cards, forcing holders to reassess credit‑card strategy and potentially protect their credit scores. This highlights the risk of co‑branded cards tied to financially unstable airlines.

Key Takeaways

• Spirit cards stay active but earn non‑redeemable points.
• Points cannot be transferred to other loyalty programs now.
• Bank of America stopped new applications as of May 2.
• Closing the card may hurt credit score; keep it idle.
• Switch to cash‑back or flexible travel cards for usable rewards.

Pulse Analysis

The abrupt shutdown of Spirit Airlines has sent shockwaves through its loyal customer base, especially those who hold the airline’s co‑branded credit cards issued by Bank of America. While the accounts remain open for everyday spending, the Free Spirit points that once powered cheap flights and upgrades are now stranded, with no redemption path or transfer options. This creates a unique dilemma: the cards retain their credit‑line utility but have lost the core incentive that justified their existence, prompting cardholders to scrutinize the true value of keeping them active.

For consumers, the immediate concern is twofold: preserving credit health and extracting tangible rewards elsewhere. Closing a long‑standing account can dent a credit score by reducing overall credit age and available limits, so many experts advise keeping the Spirit cards dormant rather than cancelling them outright. Simultaneously, the recommendation is to pivot to cash‑back or flexible travel cards that offer points transferable to multiple airline programs, ensuring earned rewards remain usable. By reallocating spend to these alternatives, cardholders can continue to benefit from credit‑card perks without the uncertainty surrounding Spirit’s loyalty program.

Spirit’s collapse also serves as a cautionary tale for the broader credit‑card market. Co‑branded airline cards are attractive for their targeted perks, yet they carry inherent risk when the airline faces financial distress or bankruptcy. Financial institutions may discontinue new issuances and delay product transitions, leaving consumers with dormant rewards. As the bankruptcy process unfolds, stakeholders will watch for any potential migration offers or point‑conversion schemes. Meanwhile, savvy consumers should diversify their card portfolios, favoring products with transferable points and robust consumer protections to mitigate similar disruptions in the future.