There are several reasons why you may want to cancel your credit card. Either because you have found a better alternative, like a good card without an annual fee such as the Tangerine Money Back Credit Card, or because you got into debt.
Whatever the reason, it’s best to think over your decision before deciding to cancel your credit card.
Keep reading to find out how to cancel a credit card if you are sure about your decision.
1. Check the outstanding balance or purchases in installments
Before requesting credit card cancellation, see what is outstanding on the invoice. If you have any dependents, remember to review these values as well. Check available installments or any other due amount on your credit card that will be cancelled.
Even after canceling the credit card, obviously, it is necessary to settle any outstanding commitments with the bank. If you have purchased in installments, the invoice will still arrive for payment on the expected date.
If you don’t have any installments, make sure you pay the remaining amount on the last bill before you cancel the credit card.
2. Remember to Redeem Any Rewards
You do not have to forfeit all rewards when you close a credit card that offers travel credit like the CIBC Aventura® Visa Infinite* Card or cashback such as Plastk. View your rewards requirements to see if there are any milestones you are close to reaching. Who knows? Getting a ticket or cashing out may only be a few dollars away.
3. Contact the call center
Call your bank’s call center and request credit card cancellation. Next, talk to the attendant and confirm that there are no pending issues. Then, if you have any remaining amount, check if it proceeds and makes the payment, as noted above.
You can only cancel the credit cards if you have paid all outstanding amounts.
It is also possible to do this through the app, Internet Banking by computer, or in person. Each bank/financial institution works in a specific way, so the best thing is to analyze your case specifically.
4. Confirm credit card cancellation
The bank must issue a notice or official letter indicating the cancellation and receipt of a zeroed invoice. If this does not happen, contact the center. You can request for a free copy to be sure the account is marked closed on your credit report. It could be that some problem has occurred. Never let the situation go by, to avoid a negative rating from credit bureau.
5. Destroy canceled credit card
Once you have confirmed the cancellation of your credit card, crumple it and cut it in half. The ideal is to destroy the chip to prevent any problems from happening. That way, no one will be able to use it.
In Conclusion
We hope you understand how to cancel your credit card without hurting your score.
More than just performing the procedure, care must be taken to avoid unforeseen events and inappropriate charges.