Taking scissors to your credit card may stop you from using it, but it doesn’t mean that the account has been closed. Open credit card accounts can accrue fees, leave you vulnerable to undetected fraud and have an impact on your credit rating. So, if you no longer have a use for your credit card, learn how to cancel and close it the right way in order to avoid problems in the future.
How to contact your bank to close your credit card account
You can organise to cancel your credit card at any time by calling your bank or credit card provider. Below, we’ve included contact details for the major credit card providers in the UK, but you could also just call the number on the back of your credit card.
If you have an American Express credit card, make sure you only contact American Express if they are your credit card provider. If you have a credit card from another provider (eg Lloyds or British Airways) on the American Express card network, you need to contact the provider directly.
0800 011 3210 (UK) +44 191 284 9005 (abroad) | 24 hours. 7 days a week
Steps to cancel your credit card
Closing your credit card account isn’t complicated, but there are a few steps you should take before calling your bank or cutting your card in half.
Pay off your balance. You won’t be able to cancel a credit card with an outstanding balance. If you’re struggling to repay your credit card debt because of high interest, talk to your provider about other options or consider transferring your balance to a card with a 0% introductory offer on balance transfers.
Call your bank first. While some banks allow you to close your credit card online, it’s usually good to call them first to make sure there are no outstanding fees or pending transactions that could affect your account. Be prepared that any representative you speak to will likely try to convince you to stay and could even forward you to their customer retention division for more persuading.
Cancel any direct debits. Make sure that you change the details for any direct debits that were being paid using the credit card. A payment request from a direct debit could reactivate the card even after the issuer has received written notice that you wish to cancel.
Transfer or use any remaining rewards points. If you’re using a rewards credit card and still have rewards points left over, either transfer them to a partnered frequent flyer partner if you have an account with them or use the points to redeem a reward to ensure they don’t go to waste.
Stand firm. In some cases, your provider may ask you why you’re closing the account and could suggest other options. But if you really don’t want to use the card or open another account, politely decline and reinforce your desire to close the account.
Send written notice. In addition to the phone call, you can send a written notice to the bank with your request to close the credit card using registered mail. In the letter, you should list the name on the account and the account number along with your request to cancel. You’re not always asked or required to do this, but it could help give you extra peace of mind.
Once the provider has cancelled your card, you’ll receive confirmation that the account is closed, usually in the mail. Keep these details on hand in case you need them for future reference.
What are the benefits and drawbacks of closing my account?
Closing a long standing credit card account is not an easy decision to make. Weigh up some of the following pros and cons to help make the right choice for your finances.
Pros
Reduced temptation to spend. Without an available line of credit, you might not be tempted to make unnecessary purchases that could result in debt.
Improved credit rating. Too much revolving credit could hurt your credit rating, especially when it comes to applying for large loans like a home mortgage.
Fewer fees. You could save money on annual fees by eliminating the number of open credit cards you have. Plus, if you're relying on your bank account to make purchases, you won't have the burden of interest.
Cons
Credit availability. If your credit rating is not stellar you may find it difficult to be approved for another credit card product in the future. In that case, it may be better to keep the account open and use it sparingly and wisely in order to try and re-establish a good credit history.
Emergency assistance. Credit cards are a convenient method of covering an expense in the event of an emergency, such as a broken boiler or an unexpected flight to visit a sick relative. Not having one available could force you to look at other more expensive options such as fast-cash loans.
As your financial needs change, you might discover that a credit card is no longer working for you. Rather than having a collection of open accounts that you no longer use, you should take the time to cancel those cards. This allows you to take better control of your spending habits and your credit report so that you can work on building a better financial future. Otherwise, if you’re looking to upgrade your credit card to a more competitive product, you can use our comparison tables and guides to compare your options.
Get a new card that you’ll love
If you want to close your credit card because it doesn’t offer what you want, you may wish to find a new credit card that better suits you.
You should receive a notification of closure from the bank when you close a credit card account. Save this paper in case there is ever any question in the future about the account.
To avoid this, you should make sure that there is no balance on the card and advise the bank in writing using registered mail of your intent to close. If you have confirmation that the request was received prior to the annual fee anniversary date, you should be able to dispute that charge if the bank were to add it to your statement.
The credit card may still accumulate debt if there is an annual or monthly fee. A few credit cards charge a dormancy fee if it isn’t used for a long period. You also put yourself at risk of fraudulent spending, especially if you are not regularly checking the status of that account.
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Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more.
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