Before you cancel your credit account, remember that closing a credit card can be bad for your credit score. However, deactivating cards is sometimes necessary, and the impact on your credit may be worth the long-term benefits for your finances.
If you do decide to close your credit card, limit the risks by following these 7 steps to cancel your card safely.
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Step 1: Cancel your recurring payments
Before closing your credit card, cancel or transfer any recurring payments you have on that account. For example, if you charge your Netflix subscription to the card you’re closing, cancel your service or transfer the charge to another card.
Leaving recurring payments on your credit card could delay the cancellation process and cause you headaches down the road.
Step 2: Pay off your remaining balance in full
You can’t formally cancel a credit card if you still owe money on the account. Even if you’ve informed your lender that you’re closing the card, the balance will remain active and visible on your credit report until it’s paid in full. 1 As long as that credit card is on your credit report, your activity (or inactivity) on it will continue affecting your credit score.
If you can’t pay the remaining balance right away but are determined to cancel the card, move your balance to another credit card with a balance transfer. (Be aware that doing so may incur balance transfer fees.)
Step 3: Redeem your credit card rewards
If you have a rewards credit card, you’ve probably earned a perk or two while using it. You may not be able to use your points, cashback rewards, certificates, or miles on your credit card once you close the account.
If you have unused rewards and haven’t yet paid your card’s balance, you might be able to redeem your rewards towards statement credit (money that the issuer credits to your account). Check your card’s terms or call your lender directly to see if they’ll let you do this.
Step 4: Contact your credit card issuer
Once you’ve paid your balance and redeemed your rewards, it’s time to deactivate your card.
The easiest ways to cancel a credit card are by phone, online, or by mail. Here’s how to do it:
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Cancel by phone: Call the number on the back of your credit card and talk to a representative. Explain that you’re closing your credit card, and ask them to mark the account as “closed at consumer’s request” to avoid it looking like it was closed by your card issuer. Over the course of your phone call, take note of the following details:
- The date and time you requested the cancellation
- The name of the representative you talked to
- The mailing address where you can send a written cancellation letter
- Cancel online: Log into your online account and follow the card cancellation instructions. If you run into any problems, call a customer service representative.
- Cancel by mail: One of the safest ways to close a credit card is to send a cancellation letter, because doing so provides a paper trail which will be helpful if something goes wrong. Send your lender a letter that expresses your wish to cancel, and includes your name, account number, and request for confirmation of the cancellation.
Step 5: Confirm your card has been canceled
After canceling your credit card, send a follow-up email to your issuer to confirm that your card has been properly canceled.
If you’re sending a letter, consider paying a little extra to send it via certified mail to prove your issuer received it. In addition, you can ask them to send you written confirmation that your account was closed with a $0 balance.
Step 6: Check your credit reports
After you close your credit card account, your credit report may take a month or more to update. Once your credit report shows your closed account, check that it’s marked as “closed at consumer’s request” instead of “closed by issuer,” which could hurt your credit.
If the bank didn’t update the status correctly, contact them immediately to fix it. If you don’t want to see the account in your credit history, you can also take steps to remove the closed account from your credit report, although this is really only worth doing if the account is bringing your score down.
Step 7: Cut your credit card before disposing of it
Last but not least, destroy your physical card after your account has been permanently closed and you’ve received confirmation of the closure.
Cutting your card before tossing it reduces the risk of fraud, so put it through a shredder or cut it into small pieces.
