Credit cards have become a fundamental tool for many people. With their convenience and ease of use, they offer immediate access to credit.
However, there are times when we need to rethink our relationship with credit, whether for financial reasons or simply personal preference.
In this article, we will show how to correctly cancel a credit card and avoid complications. Follow along and check it out!
When Should I Cancel a Credit Card?
There are several common reasons why someone might consider canceling a credit card. Here are the main ones:
- High Annual Fees: If the benefits do not justify the fees, or if you do not use them often enough to justify the cost, it may be wise to cancel the card.
- Accumulated Debts: If you find yourself in a significant debt situation and a credit card is part of the problem, canceling it can be a way to stop accumulating more debt and start working to pay off what you owe.
- Changes in Terms and Conditions: Credit card issuers can change the terms and conditions of cards, such as increasing interest rates or decreasing benefits, which may make the card less attractive to you.
- Reduction in Credit Line: If the card issuer reduces your credit line, this can affect your ability to use the card as needed.
- Lack of Use or Necessity: If you have a credit card that you rarely use or that does not offer benefits relevant to your current needs, canceling it can simplify your finances and avoid unnecessary fees.
In any of these situations, it is important to carefully consider the pros and cons of canceling the card before making a final decision.
In some cases, it may be possible to negotiate with the card issuer to avoid cancellation or find alternative solutions that better meet your needs.
How to Cancel a Credit Card?
Now that you know the reasons, see how to cancel a credit card in a very simple way and with the correct steps so that you do not have problems.
Pay Off the Remaining Balance
Before canceling the credit card, it is crucial to ensure that there is no outstanding balance on the account.
Log in to your bank or credit card issuer’s account through the official website or mobile app.
Check the current balance of your credit card account to ensure there are no pending transactions or unprocessed payments.
If there is a remaining balance, proceed to make the payment. You can choose to pay the total balance or a specific amount, depending on your financial situation.
Select the desired payment method, such as a bank transfer, debit card payment, or electronic payment.
After entering the payment details, review the information and confirm the payment to settle the remaining balance on your credit card account.
Keep the receipt: Make sure to keep the payment receipt for future reference. This can be useful in case of any dispute about the remaining balance in the future.
Redeem Your Rewards
If your credit card accumulates points, miles, or rewards, it is important to redeem them before canceling the card.
Access the rewards program by logging into your account associated with your credit card rewards program.
Check the current balance of points, miles, or rewards available for redemption. This can be displayed in your online account or on the credit card statement.
Browse the available redemption options in the rewards program and choose the one that best suits your needs.
This may include redeeming points for travel, merchandise, statement credits, or transfers to partner programs.
After selecting the desired redemption option, follow the instructions to confirm the redemption of your rewards.
Make sure to review the redemption details, including the amount of points or miles to be redeemed and how they will be used.
After confirming the redemption, you will receive a confirmation from the rewards program. This may be displayed in your online account or sent to your registered email.
If it is necessary to wait for the redemption to be completed, monitor the status of the process through your online account or contact the customer service of the rewards program, if necessary.
Contact the Card Issuer
After paying the remaining balance and redeeming your rewards, it is time to contact the credit card issuer to request cancellation.
Check the back of your credit card or the most recent statement to find the phone number or website of the card issuer.
Use the provided phone number to contact the card issuer’s customer service.
Be prepared to provide your identification information, such as card number, full name, and date of birth, to verify your identity.
Inform the customer service representative that you wish to cancel your credit card. They may ask for the reason for the cancellation, but you are not obliged to provide this information.
Make sure the customer service representative clearly understands that you are requesting the cancellation of the card.
They may offer incentives or alternatives to try to keep you as a customer, but remain firm in your decision if that is what you desire.
After the cancellation is processed, request written confirmation of the cancellation. This can be sent by email or mail, and will serve as proof that the card was officially canceled.
Check Your Credit Report
After canceling the credit card, it is important to monitor your credit report to ensure that the cancellation is correctly reflected.
Use a credit report service, such as Equifax, Experian, or TransUnion, to obtain a copy of your credit report.
Look for the canceled credit card in your credit report and check if it is listed as “closed” or “canceled”. This should be updated within a few weeks after the cancellation.
In addition to checking the status of the canceled card, make sure to review all other information in your credit report to ensure they are correct and up-to-date.
Make Sure to Destroy the Card
After confirming the cancellation of the credit card, it is essential to ensure that the physical card is securely destroyed to prevent any misuse.
Use scissors or a card cutter to cut the card into several small pieces. Cut the chip or the magnetic stripe to prevent the card from being reconstructed.
Throw the pieces of the card into different trash bins or garbage bags to ensure they cannot be easily reassembled.
If possible, dispose of the pieces of the card in a secure trash bin or use a paper shredder to completely destroy them.
By following these steps, you will ensure that your credit card is properly canceled and that the physical card is securely destroyed, minimizing the risk of fraud or unauthorized use.
With this, you can cancel a credit card more easily and be sure that you will not have problems with the unused card. And follow our article for more financial tips.
