There are several compelling reasons to deactivate a credit card. You may want to stop using a card with high fees, or maybe you’re concerned about the potential for fraud on an inactive account. Whatever your motivation, the process is usually straightforward.
Deactivation vs. Cancellation
Sometimes the terms are used interchangeably, but it’s worth noting a distinction:
|
Deactivation (or temporary closure) |
Cancellation (or permanent closure) |
|---|---|
|
The card is unusable, but the account remains open. Some banks may offer this option, but it’s not universal. |
The account is fully closed. While canceled cards cannot be reactivated, you may be able to apply for a new card under the same program in the future. |
Before You Deactivate Credit Card
- Redeem Rewards: If your card has a rewards program, exhaust your points or miles before deactivating the account. Many programs forfeit unused rewards upon closure.
- Clear Outstanding Balances: Pay off any remaining balance. Keeping a zero balance avoids unnecessary interest charges and protects your credit score.
- Update Automatic Payments: Many people set up credit cards for recurring bills. Before deactivating, ensure all automatic payments are transferred to a different card or payment method to avoid disruptions.
How to Deactivate Your Credit Card?
The exact method depends on your bank. Here are the usual steps:
- Call Customer Service: Locate the customer service number on the back of your credit card or your bank’s website. Let the representative know you’d like to deactivate or close your card. They’ll verify your identity and proceed with the process.
- Online Form: Some banks provide online forms specifically for closing accounts. Check your bank’s website or mobile app.
- Written Request: You might be able to send a written letter to your bank’s customer service address (found on their website). Clearly state your intent to close the account and include your card details.
Ask for a confirmation email or letter stating your account is closed and your balance is at zero. This is for your records. Canceling a card, especially a long-held one, can temporarily lower your credit score. This is due to changes in your overall available credit and the average age of your accounts. The effect is usually small and your credit history will recover over time.
Tips: Before deactivating, consider if downgrading your card to one with lower fees or better rewards might be beneficial. Your bank may have alternatives. Review your credit report regularly to check for inaccuracies or signs of unauthorized activity, especially after closing an account.
Deactivating or canceling a credit card is usually simple and can be done over the phone, online, or by mail. Just remember to clear your balance, redeem your rewards, and reroute any automatic payments before you start the process.