Work sheet: How to cancel a credit card account

4 steps to cancel a credit card

It's counterintuitive, but canceling a credit card can hurt your credit score. Use this work sheet to dump some of your available credit without denting your score.

A note on your credit score reflecting that the closing was initiated by the customer and not the creditor is the ultimate goal. Bear in mind that if the ratio of debt to available credit rises dramatically as a result of the canceled credit card, your credit will dip.

Download PDF version.

How to cancel a credit card

Step 1: Pay off the balance in full.

•	Make a note of the date the payment hits the account here. Date: ___________________________________

Step 2: Notify the credit issuer by phone that you'd like to cancel the account.

•	Call the customer service number, confirm that the balance is zero and there are no pending fees or lagging interest charges. Then tell them to cancel the card.
•	Ask to whom you can send a letter verifying your request, sending the letter (step 3) will be easier with a real person as the recipient.
•	Make a note here of the person spoken with and the date. Customer service representative: _________________________________________ Date: ____________________________________

Step 3: Notify the issuer in writing.

•	Use this form letter as a guide for your letter that will explain that you're canceling the card and you would like your credit report to reflect the fact that you requested the account closure. Include your name, address and account number.
•	Keep a copy of the letter and send by certified or return receipt requested to prove that it was received.
•	Write the date here that the letter was mailed and the date of receipt if possible. Date: ______________________________ Date received: _______________________

Step 4: Wait a month and request your credit report.

•	Verify that the account reports being closed by the customer, not the creditor. If it's correct, congratulations! If not, use this work sheet to fix credit reporting errors.