{"id":230,"date":"2021-06-28T22:08:01","date_gmt":"2021-06-29T05:08:01","guid":{"rendered":"https:\/\/www.nerdwallet.com\/ca\/?page_id=230"},"modified":"2024-01-08T05:48:53","modified_gmt":"2024-01-08T13:48:53","slug":"how-to-cancel-a-credit-card","status":"publish","type":"page","link":"https:\/\/www.nerdwallet.com\/ca\/credit-cards\/how-to-cancel-a-credit-card","title":{"rendered":"How to Cancel a Credit Card"},"content":{"rendered":"\n

Cancelling a credit card is easier than you may think, but it can have a negative impact on your credit score<\/a> if you don\u2019t do it properly.  <\/p>\n\n\n\n

Here\u2019s how to cancel a credit card in a way that minimizes the damage.<\/p>\n\n\n\n

Steps for cancelling a credit card <\/h2>\n\n\n\n

Take the following steps to close your credit card account.<\/p>\n\n\n\n

<\/h2>\n

Pay the balance<\/strong><\/h3>
\n

First thing\u2019s first, pay off your balance in full<\/a>. The balance needs to be at $0 before the issuer can cancel your card.<\/p>\n<\/div><\/div><\/div>\n\n\n\n

Cancel recurring payments.<\/strong><\/h3>
\n

Make sure to cancel any recurring payments<\/a> on your card, such as streaming services or gym memberships. If you don\u2019t, the services could lapse when the payments bounce.<\/p>\n<\/div><\/div><\/div>\n\n\n\n

Redeem points<\/strong><\/h3>
\n

Redeem any points you have earned so you won\u2019t lose them. You may also be able to transfer them to another account, like a frequent flyer points program.<\/p>\n<\/div><\/div><\/div>\n\n\n\n

Call your card issuer<\/strong><\/h3>
\n

When you\u2019re ready to cancel, call or write to the lender and ask for the account to be closed. You\u2019ll typically find the phone number on the back of the credit card. The representative may try to dissuade you from cancelling, but it\u2019s your choice. Make sure they leave a note on your account stating that the card was closed at your request. This will ensure it doesn\u2019t look like the account was closed by default. Write down the time, date, and name of the representative for your own records in case of a computer glitch. Ask for written confirmation that your account has been closed.<\/p>\n<\/div><\/div><\/div>\n\n\n\n

Check your closing card statement<\/strong><\/h3>
\n

Make sure that the closing statement shows a zero balance.<\/p>\n<\/div><\/div><\/div>\n\n\n\n

Cut up your card<\/strong><\/h3>
\n

Once you receive confirmation that the account is closed, cut up your credit card. A closed account typically appears on your credit report after 30 days.<\/p>\n<\/div><\/div><\/div>\n<\/div>\n\n\n\n

Does cancelling a credit card affect your credit score?<\/h2>\n\n\n\n

Potentially yes, because it impacts three important aspects that make up your credit score.<\/p>\n\n\n\n

Credit history<\/h3>\n\n\n\n

The longer you\u2019re able to hold onto a credit card (and stay in good standing), the better it looks on your credit history<\/a>. For this reason, if you need to cancel a credit card, it\u2019s best to keep your oldest card open and cancel a newer one. Closed accounts can stay on your credit history for 10 years, after which, it\u2019s removed from the report.<\/p>\n\n\n\n

Credit utilization<\/h3>\n\n\n\n

Cancelling a credit card decreases your overall credit limit, which means your credit utilization<\/a> will rise. For example, if you have three credit cards, each with a $4,000 credit limit and you spend $3,000 a month across all three cards, your credit utilization will be 25%. However, if you cancel one of the cards and continue to spend $4,000 across the two remaining cards, your credit utlization will go up to 38%. It\u2019s a good idea to keep your utilization under 35% of your total available credit, and the lower, the better. This strategy will help you get approved by lenders and get better loans, mortgages, and other credit rates.<\/p>\n\n\n\n

Credit mix<\/h3>\n\n\n\n

Lenders typically look at the types of credit accounts you own, including revolving credit. . Showing that you can handle different kinds of debt can go a long way in proving that you\u2019re a responsible borrower. If your credit card is the only revolving credit account you have open, closing it would remove this type of credit from your report.<\/p>\n\n\n\n

Reasons to cancel a credit card<\/h2>\n\n\n\n

There are times when cancelling a credit card is the right move. You may want to close your account if you: <\/p>\n\n\n\n