How to cancel the chase credit card?
Yes, you can cancel a credit card. Sometimes it's no longer a good fit for your needs or your lifestyle. If you're thinking of canceling, be sure to consider the implications it will have to your credit score including your credit utilization ratio and the age of your accounts, which is outlined in more detail below. Also consider if changing to a new card with different terms or rewards may be a better option.
Instead of canceling the card, some banks will allow what's called a product change (also known as an upgrade or downgrade). This just means that you're switching to a different credit card but staying with the same credit card issuer.
To do this, call the customer service number on the back of your current card and ask what product changes you are eligible for. The customer service representative can walk you through this process over the phone.
If you decide you are ready to cancel after all, here are the five essential steps you'll want to take.
Pay off your entire balance before you close your credit card to avoid accidentally incurring additional fees. Some issuers will allow you to just close the account to new charges while you continue to pay off the balance. However, if you forget that you have the account and stop paying the balance, your credit score could take a big hit. Once your balance is paid, check to see whether your card has any automatic payments or subscriptions on it and move these to a different card.
Be sure to redeem any rewards that haven't been used on your account. If you can't redeem the rewards for any reason, you may be able to transfer them to your partner or to another card.
Call your credit card issuer to cancel your card. Be prepared that you may be given a counteroffer to keep the card open. If you're sure you want to close, say no and continue with the process. You'll want to confirm that you don't have an existing balance on the card.
You'll want to check your credit report anywhere from 30 to 45 days after you cancel your card to be sure that it was closed and that you don't have an existing balance.
Make sure your card is completely destroyed so no one will have access to it. Use scissors or a shredder if the card is made of plastic, or ask your issuer if they have a card recycling service for cards made of metal.
The thought of canceling a credit card may feel a like a relief — but even if you've paid it off and don't plan to use it again, there are still implications to closing your account. Consider the following factors before you cancel your credit card:
How old is your account? While canceling an account doesn't affect the average age of your accounts, the canceled account will no longer improve your score. It's important to note, however, that accounts in good standing remain on your record for up to 10 years, so the overall age of your canceled account will still be included in the average.
Does your card have an annual fee? If your card has an annual fee, it may be worth canceling. If it doesn't, there might be little upside to getting rid of it. Even if your card has an annual fee, you might be able to ask your issuer to downgrade your account (just know that this will probably result in you losing access to some perks.)
Will this affect your credit utilization ratio? Closing a credit card can affect your credit utilization ratio, which is the money you owe on your credit cards, divided by your total credit card limit. Canceling a card will mean you have less credit available. Any outstanding balances are then taking up more of your available credit than before, which could negatively affect your credit score. You ideally want your credit utilization ratio to be 30 percent or lower. If canceling your card will put you above 30 percent, it might be smart to pay down other card balances first.
If your spending is out of control and you've found yourself falling into debt, closing your credit cards might make sense if the temptation to use them is too great. A high annual fee may be another valid reason for canceling. Either way, you'll want to pay off the balance in full and follow the steps listed above to close your card account.
If you want to track how your credit score is affected by the different accounts you carry, their transactions or closures, Chase Credit Journey® can offer you insight into your financial health.
Canceling by phone is quick and easy. Card holders begin the process by calling 1-800-432-3117 (found by google searching “Chase credit card customer service number”).
The system prompts card holders to enter their 16-digit credit card numbers. Then they are presented with various automated options. Skip the automated options and speak to a customer service representative instead.
Cancel with the representative, and get his or her name and number. Write it down in case the card cancellation does not go through.
Those who want to cancel via the mail need to write a short letter that includes their full name and address. The letter should also include the credit card number and a short cancellation request. Ask Chase to notify the credit bureaus that the account was closed by the account holder.
Take the letter to the post office and send it certified. Keep a copy of the letter and tracking information on hand.
Chase doesn’t advertise that people can cancel online via the website, but it is possible. Card holders begin by logging into their accounts. Then navigate to the “Secure Messages” feature.
Write a brief message requesting the cancellation. Send the message, and then wait for a reply. Responses are sent out within 24 hours. The response will likely confirm that the account has been closed. If not, it will include further instructions for the card holder to follow.
Wait 60 days after canceling your Chase credit card account. Then card holders should pull their credit reports from the three major credit bureaus. Check the report to make sure the card has been canceled.
If it has been canceled, there’s need to do anything else. If it still shows up as active on the credit reports then Chase should be contacted once again. By this time, you should contact the company by phone and speak to a representative.
Closing a credit card is easy to do, but it should be given some thought before moving forward. It’s important to understand the impact of canceling a credit card before going through the process. There can be short and long-term effects on a consumer’s credit score.
First, card holders must consider their credit utilization ratio which is the ratio of your credit balance to your credit limit. When card holders close credit card accounts, their available credit will drop, so theoretically, their utilization ratio should increase. This could potentially drop a credit score under certain scenarios. Ideally, a credit utilization ratio should be around 30 to 40 percent at maximum.
Second, closing a credit card also impacts the length of credit history. Closed accounts eventually fall off credit reports and are no longer factored in when determining the length of your credit history. Length of history is incorporated into credit score, so theoretically, it should change if you close an account.
If your Chase card is the oldest credit card by a big margin, then your credit score could change considerably under certain conditions. However, if it isn’t the oldest card or if it’s only the oldest card by a couple of years, this isn’t that big of a deal. Consumers will be able to build up a credit history with other cards.
Third, the mixture of credit should also be considered. Credit scores are impacted by the mix of credit. A bit of diversity is taken as a positive signal. Card holders who have other credit cards don’t need to worry about this. However, if it is their only credit card, it could negatively impact your score if you take out that component of credit.
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