How to cancel a credit card: Step-by-step

Canceling a credit card can be as easy as signing in to your online account and following a few prompts or calling your card issuer. But there are a few things to consider before you cancel.

What you’ll learn:

• You can typically cancel your credit card online or by phone.

• If you cancel your card, you will still owe any outstanding balance. And you could lose unredeemed rewards. 

• Closing a credit card could affect your credit utilization ratio, credit age and credit mix—each an important credit-scoring factor.

• Upgrading or swapping to a new card instead of closing your account could help you avoid negative credit impacts.

If you’ve decided to cancel your credit card, you might want to pause and take a few steps before you do, including:

• Redeem your rewards: After you close the account, you could lose access to any credit card rewards you’ve earned. 

• Update recurring payments: If the card has any automatic or recurring payments connected to it, moving those charges to a new payment method could help you avoid late or missed payments.

• Consider your credit scores: Credit age is a factor used to calculate credit scores. And closing an account, especially one you’ve had for a long time, can lower your average credit age. Canceling a credit card could also impact your credit mix, which is the different types of credit accounts you have, and your credit utilization ratio, which is a measure of how much of your total available credit you’re using.

• Pay off the balance: Canceling a credit card account does not erase debt. You still have to pay off any remaining balance. And you may be charged interest on what you owe after the account closes. Experian® recommends paying off as much as you can before closing the account to help lessen the impact on your credit utilization ratio.

The exact process for canceling a credit card account can vary by credit card issuer. The Consumer Financial Protection Bureau (CFPB) says you can usually find details on how to close your account in your cardholder agreement. But here are some general steps you might take:

You might be able to handle the whole cancellation process online by signing in to your account and following some prompts. Or you can call the card issuer at the phone number on the back of your card.

After you’ve closed your account online or by phone, the CFPB says you may also want to send the card issuer a written notice confirming you canceled the account.

When a credit card is closed, it’s typically reported to the three major credit bureaus. You can check by getting free copies of your credit reports at AnnualCreditReport.com. Experian says the account should be listed as “closed by cardholder.” 

You can also use CreditWise from Capital One. The CreditWise Simulator even lets you see how your score might go up or down if you close a card.

You can help prevent credit card fraud and identity theft by destroying your credit card once the account is closed. If your card is plastic, you can shred it or cut it into small pieces. If it’s made of metal, you might be able to send it back to the issuer for disposal.

Deciding whether to cancel a credit card or keep it open is a personal choice. But there are some circumstances when it might make sense. For example, if you’re paying an annual fee on a card but not using enough of the card’s benefits to justify the expense.

Canceling a credit card could negatively impact your credit scores. Before you close a credit card account, here are some alternatives it may help to know about: 

• Upgrade or swap your card: Upgrading or swapping to a different card with the same issuer could be an option. This typically lets you keep your account history while finding a card that suits you better.

• Use your card for occasional transactions: If you decide to keep your card open to benefit your credit but don’t want to use it much, you could keep it active by using it for occasional charges or setting up a small recurring purchase. This should prevent it being closed by the lender for inactivity.

Here are some frequently asked questions about closing credit cards:

Closing a credit card typically requires a few simple steps and can be done online or by phone. Before you cancel your credit card, it’s worth weighing how it might affect your credit.

If you’re thinking about swapping or upgrading your credit card, you can start by comparing Capital One cards. You can also see if you’ll be approved with 100% certainty and no harm to your credit scores.