How to cancel a credit card
Wondering what to do with unused credit cards and how to cancel them? We’ll guide you through what to think about before cancelling old or unused credit cards, or any nearing the end of a promotional period.
Does closing a credit card affect my credit score?
Closing a credit card may affect your credit score. It lowers your overall available credit – the sum of the credit limits for all your cards, plus other credit. This in turn raises your ‘credit utilisation ratio’ (the percentage of your total available credit you’re using).
A lower percentage shows more responsible borrowing, which is good for improving your credit score. That’s why it’s also worth keeping an unused card if you’re maxed out on others. This keeps your credit utilisation ratio low.
Plus, if it’s one of your older accounts and you’ve managed it responsibly, you’ll lose the benefit of having this in your credit history. Credit scoring models may reward you for having long-standing accounts. Keeping credit accounts open is better for your credit score.
It shows a clearer view of your credit history, which helps companies make better decisions on giving credit to customers.
Should I cancel an old or unused credit card?
Before you cancel your cards, here are some things to think about:
Will cancelling it help curb your spending?
If it’s too tempting having this credit available to you and you want to close it to avoid getting into debt, that’s a good reason to consider cancelling.
Do you use the credit card?
If you haven’t used it for a long while, then maybe it’s not one you need.
Are you likely to forget about it if you don’t cancel it?
Unused credit cards can raise the risk of fraud but checking your accounts helps you spot unauthorised transactions quickly. If you’ll more than likely just forget you’ve got this card and never keep an eye on it, it could be safer just to cancel it.
Is there an annual or monthly fee?
If your card has a high fee and you never use it, cancelling it may be a good option so you save on the fee.
Will another card give you better benefits?
It’s worth thinking about what the card offers you and whether there’s a better one for your needs. There might be a card that’s less expensive or that offers more rewards.
It’s worth thinking about what the card offers you and whether there’s a better one for your needs. There might be a card that’s less expensive or that offers more rewards.
Do you need to keep a card for emergencies?
If used responsibly, credit cards can give you a little financial flexibility when you need it - as well as other benefits like ‘Section 75’ protection for your purchases.
Can keeping the card help with your credit history?
Sometimes when you cancel a credit card, you may see your credit score go down. If this card is one of the only ways to show lenders you can manage credit responsibly then it may be helpful to keep it.
How do I close my Vanquis Credit Card account?
If you’re a Vanquis Credit Card customer looking to close your account, follow these steps:
Contact customer service: You can’t cancel your Vanquis Credit Card online or in our app. So you’ll need to call us on 0330 099 3000* and we can arrange this for you.
Pay off your balance: You’ll need to clear any remaining balance or interest due before we can close your credit card account.
Check for recurring charges: Make sure there are no recurring charges (for example, subscriptions or memberships) linked to your account, as this may prevent you from closing it.
Cut up your card: Once you close the account, destroy the card by cutting it up and disposing of it safely. This will prevent anyone from stealing your details.
Check your credit report: A few months after, it’s good to check your credit report to make sure the account is fully closed. You might find our money-saving app, Snoop helpful as it can track your credit score and alert you to any changes in it.
Frequently Asked Questions
Can you close a credit card account with a balance?
No, you can’t close a credit card account that has an outstanding balance. You must pay off the remaining balance before cancelling your account. You could consider moving your remaining credit card balance to a balance transfer card with another provider.
How do you cancel an unused credit card?
To cancel an unused credit card, follow these steps:
- Pay off any remaining balance to avoid interest charges.
- Contact your card issuer to request cancelling your account.
- Get confirmation from your card issuer that your account has been closed.
- Cut up the card and dispose of it safely. This will help reduce the risk of fraud. Then monitor your credit report for updates or errors, such as unusual activity.
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