How to cancel a credit card safely | finder.com
Guide to canceling your credit card

How to cancel your credit card safely

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Whether you’re upgrading to a new credit card, getting a balance transfer or simply reducing the number of cards in your wallet, there comes a time when you need to cancel a credit card. But it’s not quite as simple as cutting your card in half. We go through how to properly cancel a credit card, how to contact the providers, what to consider and how it could affect your credit.

How to cancel a credit card without calling

How to properly cancel your credit card

cancelling-card250x250Follow these steps to cancel your credit card successfully:

  1. Pay the outstanding balance.
    If you try to close an account with an outstanding balance, the bank could increase the interest rate or demand full and immediate payment. If you plan on transferring your balance to a new card, wait until the transfer has gone through before your close the card.
  2. Transfer any reward points.
    If your card offers rewards, redeem or transfer them to another eligible account before you request to cancel the card. Once you close the account, all unclaimed points are forfeited.
  3. Cancel direct debits.
    To prevent reactivating your card, cancel all existing direct debits linked to your credit card. Even if you’ve requested for an account to be closed, a direct debit can reactivate a canceled card.
  4. Cancel your credit card online.
    Every credit card provider offers their own way of canceling credit cards online (some more difficult than others).
  5. Cancel your card.
    Once you’re ready to cancel your card, the provider will either required you to call directly or cancel online. Most providers want to talk to you to offer lower APR or annual fees to get you to stay with them. So if you’re dead set on canceling the cards, be ready to stand your ground. Once you cancel, make a record of the date, time, and name of the representative you speak with.
  6. Cancel your card in writing.
    Other providers make it even harder to cancel by requiring that you send a written request. Ask for the address over the phone, and include your credit card number and account number in the letter. You should receive a letter confirming the closure of the account.
  7. Check for future statements.
    Try to log into your account or go through your credit card statements following your request to make sure that the card is definitely canceled.
  8. Destroy your credit card.
    Cut the card into tiny pieces to make it impossible for anyone to piece it back together. You can even discard the pieces at different times or places.
  9. Confirmation.
    You should receive a cancellation confirmation by mail. If you don’t, follow up with your lender using details from your first phone call.

Call to cancel

The phone number on the back of your credit card is usually a good bet, but here are details for contacting the major card companies to cancel your card:

Provider Contact information
American Express 800–528–4800
Citi 888–248–4226
Bank of America 800-732-9194
Capital One 800-227-4825
Chase 800-432-3117
HSBC 888-385-8916
TD Bank 888-561-8861
US Bank 800-947-1444
Wells Fargo 800-642-4720

Cancel online

Here are how a few major credit card companies let you cancel online.

  • Chase.
    Use its secured message center to cancel your credit card online.
  • American Express.
    Use its Live Chat functionality on site. It typically appears as a question mark in the corner of your screen.
  • Barclays.
    Use its Contact Us form.
  • Citi.
    Use its Messages form.

What else should I consider?

Here are a couple other things to consider before you close your account:

  • Annual fees.
    Check when your annual fee is charged and if it will affect your final payment.
  • Applying for a new credit card.
    If you plan to apply for a new card, know that applying too many times can have a negative impact on your credit history.
  • Bad credit.
    Poor creditworthiness is bound to affect your ability to get a credit card in the future. So if you have a lot of debt, you may want to hold off. Instead, focus on paying down your other debts. If you keep the balance at $0, it can help your credit.

Expert advice on canceling cards and your credit report

We spoke to Katherine Craig, Public Relations Manager of Equifax, to get insights on how canceling a credit card could affect your credit report. She says your priority should be settling outstanding payments on your account before you go to close it so that you can avoid default listings. “If you have a default on your credit file, it is a smart thing to pay the debt. Your credit report will then record the default as having been paid (and the date on which it was paid). It may impact your ability to get credit or get it at the most valuable price, but it is certainly better than leaving it unpaid.”

So what about canceling one card and applying for another? If that’s your goal, Katherine recommends limiting your applications to reduce the impact on your credit rating. “Credit reports don’t show the type of credit, or whether it was granted or taken up, what your current credit limit is or if it is now closed. However, too many applications for credit can impact a lender’s view — it may actually appear to the banks that you have a lot more active credit commitments than you do.” If you’ve submitted too many credit card applications in the recent past, Katherine suggests that you wait from three to six months before applying again.

How else will canceling my credit cards affect my credit?

Canceling your credit card can be good if you’re looking to control your spending and get a better grip on your budget. But before you make that move, consider how it can affect your credit.

Credit history

Just because you cancel a credit card, your payment information doesn’t disappear from your credit report. That can be both good news and bad. If you’ve made late payments or have any other negative information on your credit card, that data stays on your credit report for seven years. If you’re closing an account with positive account history, positive credit data stays on your credit report for 10 years from when the account is closed. This allows good credit information to stay longer than negative, giving you the change to improve your financial situation.

Credit utilization ratio

Another way that closing your credit card can affect your credit score is changing your balance-to-limit ratio or credit utilization ratio. Credit bureaus are interested in your total credit available and how much of that you’re using. A low ratio is a strong indicator of a good credit risk.

So closing a credit card with a high spending limit and a zero balance could hurt your credit score, especially if you have high balances in other cards or loans. If you want to cancel your card because of an annual fee, offset the ratio by either requesting a credit limit increase on another card or paying off balances on other cards.

Age of your credit card

When it comes to your credit cards, age matters. The amount of time your credit card has been open affects your credit score, and is beneficial if you have a positive credit history. So closing that credit card you’ve had since college can actually hurt your score if you have a positive payment history.

What should I do if I’m not happy with my credit card?

If you’ve got a credit card that’s not working for you anymore, you may want to find one that’s more suited to your needs. There are so many credit cards on the market with no annual fee, low APRs, rewards and frequent flyer miles and 0% balance transfer offers. Compare credit card offers to find a better option for you.

Find a new credit card

You may have canceled your old card because of high fees, unfavorable interest rates or lack of rewards for your spending. Why not compare a handful of credit cards at once to find the one that can benefit you most?

Updated September 24th, 2018
Name Product Annual Fee APR for Purchases (Purchase Rate) Intro APR for Balance Transfer
$0
14.74%, 18.74% or 24.74% variable
0% for the first 15 months (then 14.74%, 18.74% or 24.74% variable)
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees
$0
12.74%, 16.74% or 20.74% variable
0% for the first 18 months (then 12.74%, 16.74% or 20.74% variable)
An 18-month 0% Intro APR period on both purchases and balance transfers, plus zero foreign transaction fees, makes this is a strong well-rounded card. See Rates and Fees
$495
16.74% variable
0% for the first 15 billing cycles (then to variable)
Mastercard Black Card members receive an annual $100 air travel credit toward flight-related purchases including airline tickets, baggage fees, upgrades and more.
$195
16.74% variable
0% for the first 15 billing cycles (then to variable)
Enjoy unique excursions, privileged access to exclusive events and insider opportunities.
$995
16.74% variable
0% for the first 15 billing cycles (then 16.74% variable)
Earn points every time you spend. Luxury Card enhances your purchasing power by providing you with one (1) point for every one dollar ($1) you spend. Every purchase gets you closer to the rewards you want.
$39
24.74% variable
Designed to help build credit history with no deposit required and access to benefits.
$75 annual fee for the first year ($99 thereafter)
23.9% variable
With this card you get a 23.9% Variable APR.
Up to
19.74% to 25.74% variable
Get 1% cash back rewards on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV, terms apply.
$0
14.74% to 25.74% variable
0% for the first 15 months (then 14.74% to 25.74% variable)
Earn 10,000 Membership Rewards® Points after you use your new Card to make $1,000 in purchases in your first 3 months.
$0
14.99% to 24.99% variable
0% for the first 12 statement closing dates (then 14.99% to 24.99% variable)
Earn more cash back for the things you buy most.
$0
14.74% to 25.74% variable
0% for the first 15 months (then 14.74% to 25.74% variable)
Snag a $150 bonus statement credit after you spend $1,000 in the first 3 months
$0 annual fee for the first year ($95 thereafter)
17.74% to 24.74% variable
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
$450
17.74% to 24.74% variable
Earn 50,000 BONUS POINTS after spending $4,000 on purchases in the first 3 months from account opening* — that's $750 toward travel when you redeem through Chase Ultimate Rewards®.
$95
14.74% to 24.74% variable
0% for the first 12 months (then 14.74% to 24.74% variable)
15,000 Membership Rewards points after you spend $1,000 in the first 3 months of opening your account
$0
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
Earn unlimited 1.5% cash back on every purchase - it's automatic. No minimum to redeem for cash back.
$95
17.74% to 24.74% variable
Earn unlimited 2 points for every $1 spent on travel and dining purchases and 1.5 points for every $1 spent on all other purchases.
$0
14.74%, 20.74% or 24.74% variable
0% for the first 15 months (then 14.74%, 20.74% or 24.74% variable)
Earn unlimited 1.5% cash back on every purchase, every day
$0
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
Earn 5% Cash back in bonus categories up to $1,500 every quarter. Earn 1% Cash back on all other purchases.
$0
16.74% to 24.74% variable
for the first 12 months (then 16.74% to 24.74% variable)
An intro offer rewards cardholders with a $250 value (25,000 online bonus points) after spending $1,000 within the first 90 days of account opening
$0
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
Jumpstart your financial fitness! 60 day introductory balance transfer offer, save on interest, and get your free monthly credit score.
$0 annual fee for the first year ($95 thereafter)
14.74%, 21.24% or 24.74% variable

Compare up to 4 providers

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Adrienne Fuller

Adrienne Fuller leads the publishing team at finder.com. She has one goal: to deliver the accurate and transparent information she wishes she had when she made some of life's important financial decisions. When she's not helping folks save money, she's hiking with her two Catahoulas around her home in San Diego.

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US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card

APR

24.49
variable

Annual fee

0 For the first year
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Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™

APR

16.74
variable

Annual fee

995 For the first year
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First Access Visa Card®
First Access Visa Card®

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29.99
variable

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75 For the first year
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Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card

APR

23.9
variable

Annual fee

75 For the first year
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