If you want to cancel your credit card — you need to follow a few simple rules. The most important question here is, do you want to cancel one card or all at once?
To avoid making mistakes — calm down and think twice about your decision. You need to close the card correctly, evaluate your financial balance, your transactions, and of course, minimize all potential financial threats.
There are a few seemingly simple (but at the same time very important) steps to help you in this process.
Your decision to cancel the card is clear and not rushed?
To understand whether you need to disable the card, you need to answer a few questions and understand its reasons. Some of the most popular reasons are:
- Your debt becomes too large, and you can’t manage it;
- A reward program ends, and the card becomes less useful;
- Conditions of the card use change, and it becomes a burden for you;
- The card just expires, and you need to cancel it to open a new one.
These reasons are popular simply because they are rational and justified. In case none of them apply to you, it might be better to leave the card to avoid any impulsive (and accidental) financial damage.
You may want to consider creating a credit on a saved inactive card
Even if your card is not used, you are still considered its owner. In all the reports and the documents it is — legally — yours, so it continues to create a positive credit.
An important thing to consider here: with the majority of the cards, you can receive monetary compensation only when:
- You use it;
- You keep a positive balance on your account.
A positive balance is crucial: you can pay with it for online purchases at least once a year, and it will still count. If you have a loan, but you have always paid it on time without delay and delays, you’re it will be reflected in your account.
So you read all the reasons for cancellation, weighed all the risks, and still want to cancel it? Here’s how you can do it safely — with the least possible losses:
1. If you have money on the card, don’t cancel it immediately
When you actively use a credit card for some time (and at the same time use a mobile application of the bank), there’s a pretty good chance you have a reward. It might be bonuses, coupons, a special system of accumulative points, or whatever else.
Before you cancel the use of the card — make sure that you have used them. You can find out everything about the balance from your lender in the mobile application or the bank.
Disable absolutely all automatic payments
This is one of the most important steps as it may threaten you to continue using other cards. If you do not do this, you may be fined every month.
Nobody likes delays, and lenders of all kinds are not an exception here. When you are about to switch to another card (or just cancel the existing one), you must reset, stop or cover all the automatic settings from the monthly charge.
When the cancellation is complete, tell your lender
This is the last final step in your credit card cancellation. After completing this process, you are encouraged to make sure of this. To do this, you should contact your lender by phone number, which can be seen on their website, in the mobile application, or your loan agreement.
Of course, you should call creditors at the very beginning of the cancellation process. You will be asked exactly the reasons for cancellation, how satisfied you are with the use of the card.
No, this is not a way to get a possibly more profitable option from the same bank. This is your way to avoid misunderstandings, possibly uncomfortable questions in the future and double-check the process.
When you’re done — you should have written confirmation of security and credit cancellation, along with a confirmation of zero debts left in your account.