Can You Cancel a Credit Card After Applying?

Applying for a new credit card often involves a quick decision, but circumstances can change, leading individuals to reconsider their application or a newly approved card. It is generally possible to cancel a credit card application or a recently approved card, though the process and implications depend on the application stage. Understanding these stages and the associated actions can help navigate such situations.

Understanding Application Stages

A credit card application progresses through distinct stages, each carrying different implications for cancellation. Initially, an application is “pending,” meaning it has been submitted but a final decision has not yet been made by the issuer. This means the application is still under review.

Following the pending phase, an application can be “approved,” indicating the issuer has decided to extend credit. Even after approval, the card might be “approved but not yet activated or used.” This means an account has been opened, and a physical card may be en route, but no transactions have occurred. A card is considered “approved and used” once it has been activated and utilized for purchases.

Canceling Before Approval

If a credit card application is pending review, it is possible to cancel it. Contact the credit card issuer directly and as quickly as possible. Many online applications are processed within minutes, so prompt action is important.

Issuers provide customer service phone numbers on their websites or within application status portals. When contacting the issuer, provide your application reference number and personal identification details. Clearly state your desire to withdraw the application. While the application can be withdrawn, the “hard inquiry” on the credit report, which occurs when a lender checks creditworthiness, will remain.

Canceling After Approval but Before Use

Even if a credit card application has been approved and a card issued, it can still be canceled if it has not been activated or used. To cancel, contact the issuer’s customer service department. Provide your account number and personal details to request closure of the new, unused account.

Any physical card received should be securely destroyed to prevent unauthorized use. The account may briefly appear on your credit report as newly opened before being reported as closed. The initial hard inquiry from the application will remain.

Credit History Implications

A hard inquiry is recorded on a credit report when a lender checks an individual’s credit history for a credit application. This inquiry remains on the credit report for up to two years, though its impact on credit scores diminishes after 12 months. A single hard inquiry results in a minor, temporary dip in a credit score, typically by fewer than five points.

If a card is approved and an account is opened, even if unused and subsequently closed, it may appear on the report as a new account and then as a closed account. Closing a very new, unused account has a minimal effect on a credit score. This is because primary factors influencing credit scores, such as credit utilization and the average age of accounts, are less affected by the closure of a brand-new, unused line of credit compared to an older, established account.