How To Cancel Credit Cards

Canceling credit cards is beneficial to consumers who own cards with high annual fees, especially if those accounts are used infrequently. Another reason to cancel a credit card is to eliminate the temptation to make unnecessary purchases and increase debt.Closing a credit card account could decrease your credit score because of a decrease in your available credit.

Step 1

Pay the balance in full on your credit card. Closing your account before paying the balance off could result in an increase in your interest rate. If you pay your balance and close your card on a different day, verify with the customer service agent that you have a zero balance. Interest can continue to accrue if your payment does not post right away. Another option would be to transfer the balance to another card with a lower interest rate and then close the original account.

Step 2

Call your credit card issuer and request that your card be canceled. Be prepared to listen to the customer service agent attempt to persuade you to keep your account open. If you have carried balances from month to month, you are making them money. Be firm while politely telling the customer service agent to cancel your account.

Step 3

Write a letter to the credit card issuer as extra assurance that the credit card will be canceled. Mistakes can be made; customer service agents are only human. By writing a letter you are the card issuer with written requests for their records. Be sure to include your full account number and your full name. If you want, shred your credit card and include it with the letter. Ask for written confirmation that the account is closed.

Step 4

Review your account statement and credit report after 30 days to verify the account has been closed. Your creditor may also mail a confirmation letter for your records.

Tips and Warnings

Counteract a negative effect in your credit score by requesting a credit increase on another credit card. You may be able to maintain the amount of available credit you carry by increasing the limit on another account.