How to Cancel a Credit Card

Don’t just cut it in half

If you want to cancel a credit card, make sure you go about it properly. Don’t just cut it into pieces or throw it in the fire. Before canceling a card, be aware that a closed credit card account can still legitimately appear on your credit report for up to seven years after it was last used. Also, if you have a longstanding account with a history of timely payments, the card could actually help your credit score. If you have a good credit rating and pay your bills off monthly you may want to think twice about canceling the card.

However, if you’re determined put the credit card to rest, there are proper ways to go about it. The first thing to do is make sure there is a zero balance on the card. This is important because if you tell the credit card company you’re going to close the account while there’s still a balance, they could raise your interest rates to the highest allowable by law before you pay it off.

The next thing you should do is call the issuer to make sure the balance is zero. Once it’s confirmed, you should let them know you would like to cancel the card. At this point, the issuer may try to convince you otherwise as it costs them more to track down new customers than to keep existing ones. They may even offer you a lower interest rate. However, if you’re positive you want to cancel the card, stand your ground and disregard the sweet talk.

Just because you have spoken to a company representative and canceled your card over the phone, don’t stop there. It’s advisable that you also write the issuer a letter informing them of your decision. You should also request written confirmation from the company that your account has indeed been canceled and that the credit report states that the account was closed by request of the cardholder.

If you want even more assurance that the card was canceled, you can include a copy of the check you used to pay your account in full, and enclose your destroyed credit card in the envelope. You should send the letter by certified mail to make sure the company receives it.

Even after doing all of this, it may still take about a month before your account is officially closed. After a couple of months go by, it’s a good idea to request a copy of your credit report to make sure it says that the account was actually canceled and that it was closed at your request. If the report states that the account was closed by the creditor it will look bad on your part. If this happens, make sure you contact the issuer and keep contacting them until the mistake is rectified.

When you cancel a credit card, it’s a good idea to keep thorough records of all calls and letters. This way if there’s a dispute, you will have all the information on record.