There are many reasons to cancel a credit card, but it must be done in a certain way.
One reason to cancel a credit card is it’s no longer being used, particularly if the account is approaching the end of its annual fee period. If the card is cancelled in time then the account will not be charged the annual fee, saving the card holder some money.
Another reason to cancel a credit card is it’s been lost or stolen. This is done as a standard procedure whenever a credit card has been compromised. As soon as a card has been reported missing, it will be cancelled, and if it’s found again, it cannot be used. However, this does not cancel the underlying credit card account, merely the bit of plastic that was stolen or otherwise compromised.
Another reason to cancel a credit card is it was desired for an introductory offer that is no longer wanted. Introductory offers aren’t generally available for existing holders of that account, and so the best way to be eligible for a new card with introductory offers is to cancel the old one.
There is a common misconception that the way to cancel a credit card is to simply cut it up. But this doesn’t work as, again, the credit card account is still in place. It is also a bad idea to cancel an account by sending the credit card back to the provider with no explanation provided.
The best way to cancel a credit card is to phone up the provider and ask for the account to be cancelled. Most of the time this will be done as requested, as long as the customer service representative is satisfied they are talking to the credit card user and not an identity thief.
In some cases the representative will need a letter requesting the account’s closure, or a form to be filled out. If a form is necessary, it should be available on the provider’s website or it will be sent. Otherwise the credit card can be cancelled by letter with the name of the credit card holder together with the account number. The address to send the letter will appear on the card provider’s website.
