How to Cancel a Credit Card Without Hurting Your Score

Canceling a credit card involves more than simply stopping its use; it requires a structured approach to minimize any unintended impact on your financial standing. This article guides you through the necessary actions to consider when closing a credit card account effectively.

Preparing for Cancellation

Before formally requesting a credit card cancellation, several preparatory actions are prudent to prevent complications. Settling the outstanding balance is a primary step, as most issuers require a zero balance to close an account, preventing lingering interest charges or fees. Even if an issuer permits closing with a balance, you remain responsible for repayment, and carrying a balance could negatively affect your credit score.

Redeeming any accumulated rewards, such as points, miles, or cashback, is also important. These rewards are typically forfeited upon account closure, although some issuers may offer a grace period for redemption. For co-branded cards, like airline or hotel credit cards, points often reside with the loyalty program and may not be lost, but it is always wise to confirm the specific terms.

Updating automatic payments and subscriptions linked to the card is another step. Identify all recurring charges, such as utility bills, streaming services, or gym memberships, and switch them to an alternative payment method to avoid service interruptions. Failure to update these could lead to missed payments or service cancellations once the credit card account is closed.

Closing an account might affect your credit score, primarily through credit utilization and the average age of credit accounts. Your credit utilization ratio, the amount of credit used versus available credit, can increase if total available credit decreases due to a closed account, potentially lowering your score. The average age of your credit accounts contributes to your credit history length. Closing an older account can shorten this average, potentially impacting your score. Accounts closed in good standing can remain on your credit report for up to 10 years, continuing to factor into your credit history during that time.

Before contacting the issuer, gather necessary account information. This typically includes your full account number, the card security code (CVV), and personal identification details for verification purposes. Having these readily available will streamline the cancellation process.

Initiating the Cancellation

Once preliminary preparations are complete, you can formally initiate the credit card cancellation. The most common and often most direct method is a phone call to the credit card issuer’s customer service number, typically found on the back of your card. While some issuers may offer online portals or allow written correspondence for cancellation, a phone call often provides immediate confirmation and an opportunity to address any issues.

During the call, you will need to provide the account details for verification. Clearly state your intent to cancel the account. Customer service representatives may offer incentives, known as retention offers, to encourage you to keep the account open. Be prepared to politely decline these offers if you are resolute in your decision to close the account.

Before concluding the call, ask for a confirmation number for the cancellation request. Confirm the exact date the account will be officially closed and explicitly verify that the balance is zero and no further charges will accrue. This confirmation is important for your records and provides documentation of the cancellation.

After the Cancellation Request

It is important to obtain written confirmation from the issuer that the account has been closed with a zero balance.

Securely destroying the physical credit card is a necessary step to prevent potential misuse. For plastic cards, cut through the magnetic stripe, EMV chip, and account number. For metal cards, consider sending them back to the issuer for secure disposal.

Monitor your credit reports in the weeks and months following the cancellation. You can access free copies of your credit reports annually from each of the three major credit bureaus. Check that the account is accurately reported as closed at your request and that it shows a zero balance. Accounts closed in good standing typically remain on your report for up to 10 years and continue to contribute to your credit history. Maintaining records of all confirmation numbers, emails, and letters related to the cancellation is prudent for future reference.