Cancel Credit Card?

 How to cancel a credit credit? Should I cancel my credit card? Can you cancel a credit card online?

These are all very common questions on the topic of cancelling a credit card. We have seen questions like this, with increasing frequency over recent months.

Should I Cancel My Credit Card?

Do you have one or more credit cards, that you are no longer using? You may have an old NatWest credit card lying in a drawer at home, for example. Then, it can often make sense to cancel these unused credit cards.

Are you sure that you will not use that particular credit card again? If so, then choosing to cancel a credit card, can in the right circumstances have a positive effect on your credit rating.

The banks, and other credit card providers, generally like to see that a customer does not have too much credit already available to them. The companies can see this, as a warning sign. They can see this a sign of customers who are more likely to get into financial difficulties in the future.

If, for example you have a number of unused high limit credit cards, then cancelling these credit cards will reduce the overall amount of credit available to you. When you cancel these unused cards, it can then make it more likely that you will be approved for other credit cards with big limits, loans or a mortgage in the future.

Why Cancel Credit Card?

When you stop using a credit card, the card is not cancelled automatically.

A customer may often stop using a card because the introductory 0% credit card offers, on balance transfers or purchases, has come to an end on the card.

If a customer just stops using the credit card, then the credit card will still be available to the customer to use. The card and it’s credit limit, will also still show on your credit rating as active.

Unless you cancel a credit card then you may also receive a new credit card in the post. This can happen when the old card passes it’s expiry date. For this reason, it is very important to actually cancel old credit cards that you no longer use. This is especially important, if you change your address by moving home, for example.

How To Cancel Credit Card

Some customers will look to cancel their interest free credit cards after any 0% introductory offers have ended.

When a customer stops using a credit card, they will often cut up, or shred the old credit card. However, this does not actually cancel the card.

The right way to cancel a credit card, is to contact your credit card provider. This can be done, either in writing or by telephone. You simply need to tell the card provider that you want to cancel the credit card.

You will find the contact details for your credit card provider on any statement, or letter from the credit card company. Alternatively, contact details for all of the credit card companies can be found on their website online.

When you tell your card company that you want to cancel a credit card, they will check that there is no outstanding balance left on the card and arrange payment, if one is required.

When the credit card is cancelled, this card will then show on your credit history as “settled”. This means that the card was closed successfully and all outstanding payments were received by the card company.

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