For the most part, you rarely need tocancel your credit card.
Canceling a credit card might seem like a straightforward process, but it’s essential to approach it thoughtfully.
You may lose rewards points, cash back, or other perks associated with the card.
You might be able todowngrade to a no-fee cardwithin the same issuer’s lineup.
When should you close (or not close) a credit card?
Consider whether the card’s benefits outweigh its costs.
Doing so messes with the credit utilization part of your credit score.
If you close it, you’ll probably see your score dropbut probably not by more than 20 points.
Consider keeping your oldest card active if possible, especially if it doesn’t have an annual fee.
Redeem your rewards: Use or transfer any remaining rewards points or cash back.
Double-check the rules of your card issuer before closing your card.
We know this step can be uncomfortable, but it’s usually necessary.
Confirm with the agent that your balance is zero.
Request written confirmation: Ask for a written statement confirming the account closure and zero balance.
Your card issuer should send you a letter confirming your account has been closed and has a zero balance.
Dispose of the card: Cut up the physical card, ensuring you destroy the chip andmagnetic strip.
If your card is metal, don’t cut it up!
Contact your issuer for proper disposal instructions.
Additional safety measures
To protect yourself further, keep records of your cancellation request and confirmation.
Store your cancellation confirmation on file for a few years, just in case you should probably reference it.
Continue to monitor your credit report for any unexpected activity.
