Spirit Airlines Shuts Down: What Happens to Your Credit Card Now?

Spirit Airlines’ journey has come to an end. The company ceased operations earlier this month after failing to reach a deal that could have kept its hard-to-miss, bright yellow airplanes in the sky. 

Travelers across the country who have bought tickets for an upcoming Spirit flight must now scurry to make other plans. But the end of Spirit affects more than just travel arrangements. Spirit credit card holders have likely been wondering whether they can still use those payment tools following reports of the company’s shutdown.

The good news for cardholders is that they can keep making purchases with the discontinued airline’s credit cards. Bank of America has been the issuer for both the Free Spirit Travel Mastercard and the Free Spirit Travel More World Elite Mastercard.

Recent reports confirm that not only are those card accounts still active and open, but cardholders don’t have to take any action to continue using them at this time.

In addition, Don Vecchiarello, Spokesperson for Bank of America, told USA Today that although the bank isn’t taking new applications for the cards, it will continue to service current Free Spirit accounts. 

But the bad news is that consumers who continue to make purchases with the Spirit credit cards will no longer be able to earn Free Spirit points on those transactions.

In light of this update, cardholders are likely to find themselves in one of two groups. On one hand, people who don’t have another credit card in addition to their Spirit card are likely relieved that they don’t have to rush to apply for a replacement product from another company.

But those who used the card solely to earn points will probably want to turn to a different payment method going forward.

Now may be the perfect time for those consumers to take stock of their finances and consider what kind of card best suits their current financial situation. Plenty of options exist for people looking to apply for a credit card from another issuer. 

And some of those come with rewards cardholders may find more attractive than what the Spirit cards offered. American Express recently announced new benefits for its Gold Card, including perks that aim to please travel enthusiasts.

The Gold Card comes with an annual fee of $325, but cardholders may find it delivers more than enough value for its cost. 

Several airlines have stepped up to offer discounted fares to support affected travelers in the wake of Spirit shutting down its operations. JetBlue offered special ticket prices to help people who were stranded after Spirit ceased operating. 

And Frontier Airlines, which currently operates more than 100 routes Spirit used to fly, is helping impacted travelers by offering base fares of up to a 50% discount for a limited time.

Along those lines, people who own a Spirit credit card may see other issuers target them with offers for cards with boosted rewards, even if only for a limited time. 

Another issue that Spirit cardholders may have on their minds is what will happen to all the points they’ve accumulated on their cards. Spirit has posted an FAQ section on its website that addresses that question. Unfortunately, the company’s update on existing rewards balances is sure to disappoint cardholders.

An FAQ on Spirit’s website directs cardholders who wish to cancel their Spirit cards to reach out to Bank of America.

“Given Spirit Airlines’ immediate wind-down of operations, Free Spirit points are no longer redeemable, and there are no flights available for purchase,” the company posted. “Plans for the loyalty program will be determined at a later date through the bankruptcy process.”

Spirit’s FAQ also indicated that cardholders cannot transfer their Free Spirit points to another airline or loyalty program.

Some Spirit cardholders may be frustrated enough to cancel the card rather than leave it in their wallets to remind them of any points they may have lost. The company directs cardholders to contact Bank of America should they want more information on that option. 

Vecchiarello told USA Today that Bank of America will be contacting Spirit credit card customers about any updates to their account. And he added that some cardholders may be eligible to move their accounts to other card programs Bank of America offers.

“Bank of America remains committed to serving our Free Spirit cardholders as we work through this transition and will continue to keep them informed every step of the way,” Vecchiarello said.