Cancelling Your Credit Card

There are many reasons why you might wish to cancel your credit card: you may have found a better deal with another card provider; you may wish to pay off your debts and close the account; or you may find that you simply do not use the card as much as you thought you would. Whatever the reason, there are certain procedures you should follow to cancel your credit card.

You will need to inform your card provider that you wish your credit card account to be closed, by sending a written request. Any outstanding debt that you owe on the card must be repaid. Aim to repay in full before the end of the month: if not, you will still be required to pay interest charges and some credit card providers have been known to increase the interest rate for those who have cancelled their accounts. You should cut your credit card in half, through the magnetic strip and electronic chip. If you have received credit card cheques, you will usually be required to return these to your credit card provider. You should also cancel any future charges that you have scheduled on your credit card account, such as money transfers.

If you do not receive written confirmation that your account has been closed, you may wish to request this. In some cases, you may need to show this confirmation letter to credit reference agencies who manage your credit report, because they may not automatically update your history.